The Minister for Trade Simon Crean today (26/3/2010) advised that the popular Export Market Development Grants (EMDG) scheme has attracted an unexpectedly high number of applications from Australian exporters this year. The extra demand demonstrates the success of Australian exporters in weathering the Global Financial Crisis but it also means there is a funding shortfall for larger grant claims.
“We are now faced with a shortfall in funds to cover claims above $50,000”, Mr Crean said.
$50m extra funding
“The Government has endeavoured to restore the funding future of the EMDG scheme by providing $50 million in additional funding for the scheme in 2008-09 and a further $50 million in 2009-10.
“The additional $50 million funding provided for the scheme for 2009-10 has certainly softened the impact of the significant increase in grant demand on final payment amounts,” said Mr Crean.
More than 5,100 Australian businesses submitted grant applications this year, up 15 per cent compared with last year. The total value of grants claimed also increased significantly, exceeding $269 million, an increase of 20 per cent.
Although final payment outcomes for the year won’t be known until Austrade finalises the processing of EMDG applications in June, Austrade estimates that businesses that are approved for grants of up to $50,000 will receive the full value of their EMDG claims.
There are approximately 1,450 companies (30 per cent of grant recipients) likely to be approved for grants in excess of $50,000. These companies are expected to be paid at the rate of between 50 and 70 cents in the dollar on the balance of their claims above $50,000.
“The Government has always been a strong supporter of the scheme, helping Australian exporters deal with the tough global conditions of recent years through injecting an additional $100m funding into the scheme over the last two years.” Mr Crean said.
The EMDG scheme is a reimbursement scheme based on expenses incurred in the previous year. The current funding allocations are for expenses in the financial year 2008-09.
The EMDG scheme is administered by Austrade and assists export-focused small and medium sized Australian businesses to enter into export and become sustainable exporters by providing partial reimbursement of certain export promotion expenses.
To find out more about how Treadstone can help you with Government Grants call us now on (03) 9016 3575