Austrade has announced Round 3 for the Export Market Development Grants (EMDG) for FY24 will open on 15 March 2023 and will close on 14 April 2023.
The scheme is a key Australian government financial assistance program for aspiring and current exporters. Administered by Austrade, the EMDG supports a wide range of industry sectors and products, including ICT, manufacturers, inbound tourism and the export of intellectual property and know-how outside Australia.
EMDG provides a 50% rebate on overseas marketing expense up to a limit of $40K, $80k or $150k as determined by your export status. However, these amounts are typically reduced to match the available grant budget, meaning, the grant amount will be less depending on the:
- number of eligible applications in the round (referred to as demand)
- available program budget shared among all eligible applicant
Grants are for eligible promotional activities undertaken by small to medium sized exporters and representative bodies. Small to medium enterprise (SME) exporters can apply for grants over 8 years in total (but not necessarily consecutively). Representative bodies have no maximum grant years. Grants for businesses are available in 3 tiers with each providing a different level of support for SMEs as they grow their export markets. The tiers are:
- Ready to export
- Exporting and expanding
- Exporting, expanding and strategic shift
Businesses don’t have to start at Tier 1 and progress to Tier 2 and 3. They can apply for any grant tier at any time depending on the business need.
Round 3 Changes
The following changes have been made to Round 3 for EMDG FY24:
- Grant agreements will be for one year, with a possibility of extension subject to the availability of funds to ensure funding availability in the future.
- The definition of strategic shift for Tier 3 grantees has been updated.
- Austrade requires that businesses meet their taxation obligations, that is, comply with all the relevant Australian Taxation Office (ATO) legislation, rulings and guidelines. During the assessment process we may ask businesses to obtain and provide a Statement of Tax Record from the ATO. This will help us to check compliance prior to issuing grant agreements and ensure grant funds go to export purposes, not to pay tax debts.
Milestones and Payments
The EMDG program bases criteria on eligibility, not competition. All eligible applicants receive a grant. The process is as follows:
- Apply for a grant for eligible promotional activities you plan to undertake.
- After all applications are considered, Austrade offers a grant agreement to each eligible applicant.
- If you agree, you enter into a grant agreement with Austrade. Grant agreements will clarify the maximum funding amounts per financial year over the term of your grant agreement.
- You lodge a milestone report to request milestone payments as per your grant agreement. Your grant agreement will state:
- when we make your milestone payments
- what you need to do to get these payments
Grant payments for expenses incurred in FY24 will be made in first quarter FY25 based on the Milestone reports. You may be asked to provide bank statements that show the transactions and verify evidence related to the expenses incurred. Your milestone report must:
- include your planned activities (as detailed as possible); and
- showcase that you met the goals identified in your plan to market
The timings for milestone payments are dependent on the date of your submitted milestone report. If you submitted your report a little later, or are yet to do so, please remember that your milestone report must be assessed before any payment is made.
Austrade will assess the milestone reports in the order they are received and then make payments within 14 days of their assessment being finalised. Austrade may ask you, as a grantee, for information, documents, or a statement about any relevant matters, including records of the eligible expenses you have paid. Similarly, AusIndustry can ask for additional information on your application.
We have 14 years of experience preparing EMDG claims and can assist in making sure you receive your maximum rebate.
Working with us means you get the maximum grant with minimum risk and effort. Our expertise includes R&D Tax Incentive registration and tax schedules, Export Grants, Capital Expenditure and Infrastructure Grants.
Get in touch with us and let’s discuss this more in detail.
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