Export Market Development Grant Changes (EMDG)
As of the 1st of July 2021, there will be a new program to provide greater upfront certainty for exporters to be able to plan their offshore promotional activities. Small to medium enterprises (SMEs) will be able to apply for a maximum of $770,000 in grants, per applicant. This can be done over 8 years and they do not have to be consecutive.
The grants will be available in three tiers, designed to provide the correct amount of support to SMEs as they grow their export markets:
- Tier 1 – for eligible SMEs who are new to exporting, grants of up to $40,000 per year for two years.
- Tier 2 – for eligible exporters who plan to expand their presence in current markets, or enter new markets, grants of up to $80,000 per year for three years.
- Tier 3 – for eligible exporters who plan to make a strategic shift in their exporting business, grants of up to $150,000 per year for three years.
SMEs will only be eligible if they are export-ready and have a turnover of less than $20 million.
How will it work after the changes?
It becomes an eligibility-based grants program, and the process is set out below:
- You apply for the grant before you spend money on promotional activities.
- Austrade assesses all applications and offers a grant agreement to each eligible applicant.
- You accept the agreement and conduct the promotional activities as promised in the agreement.
- You request milestone payments in accordance with your grant agreement.
- Your grant agreement will state when your milestone payments will be paid out and what you should to, to receive your payments.
Assistance for industry bodies and alliances
Assistance is provided to industry bodies and alliances will be expanded to provide help for members who are new to export, to become export ready. The grants for members to enable them to undertake promotional activities in international markets are up to $150,000.
What are the rules for EMDG after the changes?
After the 1st of July 2021, the EMDG will be governed by three documents:
- The Export Market Development Grants Act 1997 (the EMDG Act) remains in place until the amendments passed by parliament come into effect on the 17th of June 2021.
- The Export Market Development Grant Rules 2021 (the EMDG Rules).
- The Export Market Development Grants Guidelines (the EMDG Guidelines).
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au