The Export Market Development Grant (EMDG) is a crucial support mechanism for Australian businesses looking to grow internationally. In 2025, the program continues to evolve, aiming to foster long-term export success, especially for innovative small and mid-sized businesses. With new rules, updated tiers, and revised compliance expectations, understanding the latest changes is critical. In this guide, we’ll break down everything that has changed in 2025, what it means for your business, and how to stay ahead.
At Blackwattle Tax, we specialize in helping businesses navigate the complexities of the EMDG and other government grants. If you’re unsure where to start, visit EMDG to learn how we can help you secure funding.
What Is the EMDG and Why Is It Critical for 2025?
The Export Market Development Grant is a government initiative administered by Austrade. It’s designed to encourage small-to-medium enterprises (SMEs) to promote their goods and services internationally by providing financial reimbursement for eligible marketing and promotional expenses.
Originally launched in the 1970s, the program has seen several reforms. The 2021 overhaul moved the scheme from a reimbursement model to a forward-looking grant agreement model. In 2025, further refinements continue to streamline the process and improve alignment with long-term export objectives.
For growing businesses, this isn’t just about covering costs, it’s about funding international expansion, reducing financial risk, and unlocking future growth. And for mid-sized businesses that often fall into the gap between startup incentives and large-scale funding, the EMDG fills a critical financial need.
Key Changes to the EMDG in 2025
Changes to Tiers and Lifecycle Funding Caps
The most visible update to EMDG in 2025 is a refinement of its three-tier system. While the structure remains similar, the application criteria and funding caps have shifted.
- Tier 1 is now capped at $40,000 per financial year over two years, still targeted at new exporters.
- Tier 2 offers up to $80,000 per financial year over three years and supports expanding exporters.
- Tier 3 allows for up to $150,000 per financial year for three years and is meant for strategic exporters entering new international markets.
Each business can apply for up to eight years of EMDG support. However, lifecycle tracking has been enhanced. In 2025, lifecycle limits are tracked across your ABN even if your business undergoes structural changes so planning matters more than ever.
To understand if your export strategy fits within these new limits, we recommend speaking to our grant consultants via our Free Strategy Session.
Expanded Definition of Eligible Expenses
Another notable update is the revised list of eligible marketing expenses. In 2025, eligible activities now include:
- Overseas market research and consultant fees
- International advertising and online promotions
- Participation in virtual trade shows
- Free samples and trial product distribution
- IP and trademark registration in foreign markets
On the other hand, expenses like travel within Australia, general business admin, and broad digital marketing efforts without market-specific goals are more strictly scrutinized.
If your business is planning a multi-country campaign, you’ll need to tailor marketing materials and spend based on the destination market to qualify under the new rules.
Compliance and Reporting Tightened
Businesses receiving funding are now expected to submit regular milestone updates. These reports help Austrade monitor the use of funds and ensure businesses are making progress toward their export goals.
Failure to submit milestone reports can lead to reduced future payments—or complete disqualification. Blackwattle Tax can act as your strategic advisor, helping you manage these reports and stay compliant.
Visit our Virtual CFO Services to learn how we can oversee compliance, financial tracking, and reporting requirements.
Updated Eligibility Criteria
Eligibility criteria for 2025 remains focused on small to mid-sized businesses, but there are key thresholds and considerations:
- Your annual turnover must be less than $20 million.
- You must be an Australian-based business with an ABN.
- Your export activities must involve eligible products such as goods, services, events, or IP of Australian origin.
- You must demonstrate readiness to export, either by completing Austrade’s Export Readiness Tool or through documented export plans.
A significant update in 2025 is a tighter interpretation of what qualifies as “Australian origin.” Businesses relying heavily on imported goods must demonstrate how their product or service has been substantially transformed in Australia.
How the Tier System Works in Practice
Let’s break down how the tier structure applies in the real world.
Tier 1: New Exporters
Imagine a Melbourne-based eco skincare brand that’s recently received international interest. They’ve never exported before but want to launch an influencer campaign in Southeast Asia. Under Tier 1, they can apply for up to $40,000/year in matched funding.
To be eligible, they need to submit a clear export strategy, marketing plan, and evidence of being export-ready. This tier is designed to help businesses like this one take the leap.
Tier 2: Expanding Exporters
Let’s say the same brand has already run campaigns in Singapore and wants to expand into Hong Kong and Malaysia. Now they qualify for Tier 2, which allows up to $80,000/year over three years.
This tier expects more detailed documentation of prior activity and results, and the business must show how their expansion aligns with the funding request.
Tier 3: Strategic Shifts
A technology company that has already exported software services to the UK is now entering the U.S. and Latin America. These markets require new certifications, translations, and partnership models, a strategic shift.
Tier 3 offers up to $150,000/year over three years to support these efforts. Austrade will expect a full business case and an export roadmap.
If you’re unsure which tier your business falls under, our R&D and Grant Specialists can help you clarify your eligibility and build a strong application.
What Makes a Successful EMDG Application in 2025?
Success under the 2025 model requires more than submitting receipts. You need a clear export plan, well-documented marketing strategy, and financial forecasting.
Here are some core components:
- Export Plan: A strategic document that outlines your goals, target markets, milestones, and revenue projections.
- Marketing Strategy: Specific activities tailored to each region you’re targeting.
- Financial Tracking: Accurate records of all relevant expenses, including receipts, contracts, and invoices.
- Milestone Reporting: Clear quarterly updates that show progress, return on investment, and budget tracking.
Blackwattle Tax offers a comprehensive solution that combines financial forecasting with EMDG-specific grant writing. This ensures your application doesn’t just meet eligibility it stands out.
Case Studies: Who’s Benefiting from EMDG?
Case Study 1: GEM Connect
This well-being-focused education provider received two successful EMDG grants during COVID-19, which allowed them to maintain their operations and expand into difficult international markets.
We worked with them to align their strategy, documentation, and export plans to meet EMDG’s evolving criteria. As a result, they secured critical refunds and stayed afloat through uncertain times.
Case Study 2: OPEC Systems
A long-term client, OPEC Systems uses EMDG funding to support their international expansion. With complex CGT considerations and government grants layered into their strategy, our virtual CFO and tax teams collaborated to integrate every piece.
Their success illustrates how a smart, strategic approach turns EMDG into a competitive advantage.
After Approval: What Comes Next?
Approval is only the beginning. Once your business secures EMDG funding, you’ll need to follow a clear path:
- Submit milestone reports on time.
- Keep detailed records of expenses and results.
- Use the funds as agreed in your grant application.
Austrade has become stricter in ensuring that businesses use their funding as described. If you make substantial changes to your marketing activities or regions, you must notify them. Otherwise, your funding could be cut or revoked.
Our clients rely on our Virtual CFO support to manage these steps and avoid compliance headaches.
What If You Don’t Qualify for EMDG?
Not every business will meet the new thresholds. That doesn’t mean you’re out of options.
Here are a few alternatives:
- R&D Tax Incentive: For businesses creating new products, processes, or technology, this can offer up to 43.5% in cash rebates.
- State Export Assistance Programs: Some states offer their own funding and mentoring for exporters.
- Strategic CFO Guidance: Even without grants, you can still structure your finances to support international growth.
Final Thoughts: Stay Strategic, Stay Ahead
The EMDG program is still one of Australia’s most powerful tools for scaling your business internationally. But with stricter rules and more documentation required, success in 2025 demands planning, clarity, and follow-through.
At Blackwattle Tax, we’re not just tax experts, we’re strategic partners. From building export-ready plans to preparing applications and overseeing compliance, we’ve helped businesses like yours turn opportunity into action.
If you’re ready to explore how EMDG funding can power your growth, book your free 30-minute session with our team today.
Frequently Asked Questions
What is the maximum I can receive under EMDG in 2025?
Up to $770,000 over an 8-year period, depending on your tier and business lifecycle.
Is EMDG taxable?
Yes, EMDG payments are generally considered assessable income.
Can I apply for EMDG and R&D Tax Incentive at the same time?
Yes, as long as the expenses claimed under each grant do not overlap.
When is the EMDG application deadline for 2025?
Applications usually open mid-year, but we recommend starting preparation in Q1 to avoid last-minute rush.
Do I need a consultant to apply?
While not required, consultants significantly increase success rates and reduce errors especially in documentation and compliance.
Schedule a FREE 30-minute consultation today to discover how we can help you make strategic decisions and streamline your business operations.
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Disclaimer: We endeavour to make sure the information provided in this guidance is up to date and accurate. Please note, that the information is only intended to be a guide, with a general overview of information. This guidance is not a comprehensive document and should not be interpreted as legal advice or tax advice. The information is general in nature. You should seek the assistance of a professional opinion for any legal and tax issues related to your personal circumstances.
