The Export Market Development Grant (EMDG) is a financial assistance program provided by the Federal Australia Government to incentivise exporters to expand their marketing and promotional activities into international markets. Exporters that previously benefited from the EMDG included exporters of food and beverage, baby and nursing, health and beauty, and primary industry products.
Blackwattle recommend applicants start preparing claims under both the Traditional and New Scheme as soon as possible. Applications for EMDG grants are due to be lodged by no later than 17:00 AEDT, on 30 November 2021.
Old EMDG
New EMDG
Applicable Financial Year
FY2021 or before
FY22 and onwards
Brief Summary
Provided cash reimbursements to eligible exporters for up to 50% (capped at $150k) of eligible marketing costs spent on exporting business or overseas operations.
Provides upfront funding under a grant agreement specifying the amount to be funded over 2 or 3 years (depending on eligible Tier), allowing exporters to plan marketing activities with greater certainty.
How much grant
EMDG reimburses 50% of expenses above a $5k threshold.
Tier 1: for eligible new exporters SMEs who are new and ready to start exporting – grants of up to $40k per year for 2 years.
Tier 2: for eligible exporters who plan to expand their presence, in current markets or enter new markets – grants of up to $80k per year for 3 years.
Tier 3: for eligible exporters who plan to make a strategic shift in their exporting business – grants of up to $150k per year for 3 years.
Applicants must spend at least an equal amount of their own money on eligible expenses.
Grant limit
Maximum grant of $150k per application (subject to available program funds) paid in 2 tranches. The first tranche of payment is capped at $100k (based on FY20), with the remaining balance of grants to be paid from a shared funding pool. Maximum of 8 grants over life of business.
Up to $770k per applicant (including funding you received under the EMDG reimbursement model) over 8 financial years (not necessarily consecutively). Applicants must spend at least an equal amountof their own money on eligible expenses
Eligibility Applicant
– Turnover under $50 million. – Incurred $15k or more in eligible export promotion expenses in a financial year (or past 2 years for first time applicants). – Must have incurred the expenses, and it (or its related entities) must own the products it intends to export.
– Turnover under $20 million. – Other requirements such as export readiness tests.
Eligible Product
– Goods made in Australia. – Goods made overseas where Australia could derive a significant net benefit. – Australian tourism service. – Non-tourism service (exclusions real estate, immigration, certain films)Intellectual property generated by work done in Australia. – Trademark owned, assigned, or first used in Australia. – Know-how from work mainly done in Australia
An eligible product must be of substantially Australian origin and be goods, services, events, intellectual property or know-how, or software. Some products and services are specifically not eligible, for example, services relating to migration to Australia, lease/sale/purchase of assets in Australia (whether tangible or intangible), and compliance with Australian laws.
Eligible Expenses
– Overseas representation costs – Marketing consultants – Marketing visits – Free samples – Trade fairs, seminars and in-store promotions – Promotional literature and advertising – Overseas buyers visit in Australia – Registration and/or insurance of eligible intellectual property
Some expenses are specifically listed as not eligible.
Eligible expenses include expenditures on maintaining representative in foreign country, short trips to a foreign country or within Australia, consultant, foreign buyer visits, soliciting for business in foreign country, free samples, promotional and advertising material, intellectual property rights, and training activities for representative bodies or Tier 1 applicants.
Some expenses are specifically listed as not eligible.
About Blackwattle Tax
We provide professional services including:
Government grants such EDMG and R&D Tax Incentive
Tax compliance and complex tax advisory
Business advisory
Virtual CFO
We are here to help you with your business needs at various growth stages, whether start-ups, expanding, or mature business. We assist you with top tier firm expertise, services, and reliability.
