EMDG FY21 Now Open
EMDG (Export Market Development Grant) for FY21 is now open! Australian exporters can now claim rebates on business expenses for FY20 if they are eligible.
The rebate is 50% of claimed expenses to be paid in 2 grant payments. The first tranche payment for FY21 expenses will be up to a maximum of $30k. The remaining rebate due will be paid in June 2022 after the total grant payments are tallied up and a payout factor is applied. The FY21 grant will be subject to the performance measure, capping rebates as previously applied. See table:
For example, a Year 3 claim with A$200,000 of export earnings would be capped at A$80,000 even if the eligible expenses less the first $5,000 would have led to a rebate of more than A$80,000. In order to receive the full rebate in Year 8, applicants must receive more than $3,000,000 of export earnings in the year of claim (on a cash basis).
EMDG for FY21 rebate applications will close on 30th Nov 2021 for self-lodgement.
Treadstone, as a QIP consultant, can submit claims on behalf of its clients until 28th Feb 2022.
FY22 New EMDG
Concurrently, the FY22+ new program applications [link to Austrade] will open for applications on 16th August and close on 30th November 2021. No late applications will be accepted. If you miss the cut off you will need to wait till the following year.
Small to medium enterprise (SME) exporters can apply for 3 different grant types over 8 years (not necessarily consecutively) for eligible promotional activities. Grants are available in 3 stages or tiers. Each tier provides a different level of support to SMEs as they grow their export markets.
The 3 tiers are designed to provide different levels of support to applicants as they grow their export markets at the different stages of your export journey.
Applicants can choose which tier of funding they wish to apply for. You do not need to move through the tiers in successive order. For example, an applicant may apply for 8 years in Tier 2, or 3 years in Tier 2 and 6 years in Tier 3.
How to apply for EMDG Grant?
Below is a step-by-step guide for EMDG application process. You can find the sample application link and checklist on the Austrade website but will not be able to submit till it opens. The process will look like this:
Once per year the applicant must provide a report and evidence to Austrade to demonstrate:
- The applicant has met the eligibility for a milestone payment.
- Marketing expenses were in relation to the eligible product / service.
- The amount spent meets the commitment in the agreement with Austrade.
- Provide evidence of all eligible marketing expenditure and how it relates to your grant agreement and goals.
Who can apply for the new EMDG FY22 Program?
As per previous years, any Australian individual, partnership, company, association, co-operative, statutory corporation or trust that intends to carry out export eligible promotion activities related to one of the following eligible products:
- intellectual property or know-how
Applicants must also meet the following criteria:
- Have a registered ABN
Have an annual turnover of $20m or less in the 2021 financial year
- Demonstrate principal status for the export business
- Have goods / services made in Australia
- Have goods made outside Australia where Australia will derive a significant net benefit from its sale overseas
- Provide evidence that you can match grant funding dollar for dollar
- Submit a PLAN TO MARKET, including a budget projection which covers the duration of your grant agreement
What can you claim?
- Overseas representatives
- Overseas marketing trips from and back to Australia (up to 21 days in length)
- Marketing consultants
- Australian travel to market to potential foreign buyers (excluding flights)
- Free samples
- Promotional and advertising material
- Patent and trademark expenses
- Foreign buyer visits
- Training activities offered by approved training bodies (Tier 1 applicants only)
Note: There are no expenditure caps on the above categories
What can’t you claim?
- The sale or export of products that contravenes Australian law
- Soliciting sponsorship for events
- Capital expenses
- Trade with New Zealand
- Government costs
- Sales-related expenses
- Australian employee remuneration and remuneration-like expenses
- Expenses incurred by a related business entity
Treadstone has been helping clients with EMDG preparation, applications and audits since 2008. Working with us means you get the maximum rebate you are entitled to with minimum risk and effort. We also provide advice for forward-planning your marketing with the key goal of maximising your rebate.
If you are interested in more information about how we can increase or maximise your rebate, please contact us on:
Phone: (03) 9008 5937