The Export Market Development Grants (EMDG) program is the Australian Government’s premier initiative to support SMEs in developing and expanding their export markets. This entitlement-based, eligibility-driven, and demand-responsive program aims to foster the creation, development, and expansion of foreign markets for Australian products.
The EMDG program offers targeted financial assistance for marketing and promotional activities, as well as the development of marketing skills, to small and medium enterprises (SMEs) with a turnover of less than $20m, and representative organisations.
While the government hasn’t officially closed the EMDG program, recent Federal Budget cuts and a planned ‘strategic refocus’ (details below) will impact future rounds.
EMDG Past Rounds: Key Dates and Status
Currently, there are no open grant rounds for applications. Rounds One (2021), Two (2022), and Three (2023) of the EMDG program have closed, and funds are fully committed.
Over 9,600 businesses across the three rounds will continue to receive grant payments throughout the 2023/24 and 2024/25 financial years, provided they meet their grant obligations.
EMDG Future Rounds
The EMDG information on the Austrade website applies to Rounds One, Two, and Three, but not to Round Four. Amended rules are expected for Round Four, likely to open in late 2024 or early 2025, subject to the program’s ‘strategic refocus’. This includes:
- Developing and approving revised EMDG rules and grant guidelines
- Developing program documentation
- Conducting communication and outreach activities
- Updating the EMDG online portal and grants management platform
Austrade aims to assess Round Four applications and issue grant agreements before the start of the 2025/26 financial year, with payments starting from July 2025. Austrade will communicate all changes once the program details, including guidelines, are finalised and released.
EMDG Program Eligibility
Eligible applicants can receive up to $770,000 over eight (8) financial years. These funds are for promotional activities to market eligible products – including goods, services, events, IP, and software – in foreign countries, or training activities to develop marketing skills.
The 8 years do not need to be consecutive.
Available EMDG Grants
For Rounds One, Two, and Three, EMDG grants were available in three tiers, designed to provide different levels of support as you grow your export markets throughout the different stages of your export journey. Additionally, the grant agreements span multiple years, giving applicants certainty over eligible grant payments for two or three financial years.
The three tiers of EMDG grants are:
- Tier 1 – Ready to Export: For eligible SMEs who have not exported eligible products before but are ready to begin exporting in the grant year.
- Tier 2 – Exporting and Expanding: For eligible businesses with plans to expand their existing exporting.
- Tier 3 – Exporting, Expanding, and Strategic Shift: For eligible exporters who plan to make a strategic shift in their exporting business.
High demand for the program resulted in grant amounts for recipients in all three rounds being significantly lower than the legislated caps.
Important Notes for EMDG Applications:
- The definition of Strategic Shift was changed for Round 3.
- Grant recipients must spend at least an equal amount of their own money on eligible expenses.
- All applicants are required to provide a marketing plan, which shows Austrade what you intend to do to market your product overseas in the next two to three years, and why.
Eligible Expenses
The types of expenses eligible under each expense category of the EMDG program are:
- Category 1: Maintaining Representative in Foreign Country: Maintaining a representative in a foreign country for more than six months in a financial year, who is conducting market research and promotional activities for your eligible products. This includes expenses such as salary and wages, office rental costs, education of the representative’s children if relocated, relocation expenses, and recruiting a replacement representative.
- Category 2: Short Trips to a Foreign Country: Up to 21 days of continuous travel for you or your representative to a foreign country, departing from and returning to Australia. This includes travel costs during the marketing visit – e.g., airfares, departure taxes, accommodation expenses, incidentals, ground transport, and food.
- Category 3: Consultants: Engaging a consultant to undertake market research and promotional activities for your eligible product in a foreign country. This includes expenses such as original research, export planning and pricing strategies, and designing marketing materials.
- Category 4: Short Trips Within Australia: Up to 21 days of continuous travel within Australia for you or your representative to undertake activities related to marketing your eligible product to potential foreign buyers. This includes food, accommodation, and ground transport to meet overseas delegates or foreign residents in Australia. This does not include ordinary remuneration for you or your representative.
- Category 5: Foreign Buyer Visits: Up to 21 days of continuous travel between Australia and a foreign country, and within Australia, for a prospective foreign buyer of your eligible product. This includes airfares to and from Australia, accommodation, food, and incidental ground travel expenses.
- Category 6: Soliciting for Business in a Foreign Country: Expenses for activities undertaken by you or your representative to solicit business in a foreign country for your eligible products.
- Category 7: Free Samples: Providing free samples of your eligible product to either a person in a foreign country or a person in Australia from a foreign country if your eligible product is tourism services. This includes expenses attributable to the actual cost of providing product samples free-of-charge and costs such as postage or freight to deliver samples overseas. This does not include samples given away as discounts or sales-related adjustments, or where they relate to product or prototype development. Your samples must be the same as your product that would be provided under any future sales agreements.
- Category 8: Promotional and Advertising Material: Producing and providing material to promote or advertise your eligible product in a foreign country. This includes website design and build costs, social media marketing, Google advertising, and design and printing of brochures.
- Category 9: Intellectual Property Rights: Seeking the granting, registration, or extension of intellectual property rights for your eligible product in a foreign country. This includes payments to patent and trademark attorneys and relevant government trademark and patent offices.
- Category 10: Training Activities – Representative Bodies: If you are a representative body, you can deliver or arrange training for members of your represented group to help them better market their eligible products in foreign countries.
- Category 11: Training Activities – Tier 1 Applicants: If you are a Tier 1 applicant, you can obtain training to help you or your staff better market your eligible products in foreign countries.
Note: Training expenses are not eligible if they are being funded under a grant agreement with a representative body.
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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.
