Export Market Development Grant
What is the Export Market Development Grant (EMDG)?
The Export Market Development Grant (EMDG) is open to Australian manufacturers and service providers, which are exporting or planning to export their products and services into international markets. It is a long-standing program, which in fact will be celebrating it’s 50th birthday in 2025!
All entity types are eligible if operating an ABN. This includes, Trusts, Sole Traders, Incorporated Companies and Not-for-profits.
The scheme reimburses businesses at a rate of 50% for a range of export related promotional expenses.
How does EMDG work?
To claim funding under the EMDG program Avant Group will first apply for a Grant Agreement from Austrade (Australian Trade and Investment Commission) for your business. You must apply prior to the commencement of the financial year and will only be able to claim for costs paid for in the financial year that you have an agreement for. The program operates on a cash basis – meaning all items must be paid for within each claim period.
The agreement will be classed as one of 4 different tiers that pertain to the businesses export readiness.
To be eligible, your business must fall within 1 of the 4 tiers and be export ready.
Tier 1 is suitable for companies with a turnover of less than $20 million and are new to exporting. They are eligible for $20,000 to $30,000 per financial year.
Tier 2 suits those who plan to expand their presence in current markets with a turnover of less than $20 million. Grants between $20,000 to $50,000 can be claimed under tier 2 per financial year.
Tier 3 is for those who are making a shift to new markets and have a turnover of less than $20 million. Companies under tier 3 can claim between $20,000 and $80,000 per financial year.
Representative bodies that assist SMEs can also apply for funding to support their members’ export efforts. Grants of up to $50,000 are available per financial year.
Most grant agreements will provide anywhere between $20,000 to $80,000 per annum, depending on the Tier applied for and your export readiness.
A business is eligible for up to 8 years of EMDG claiming.
The window to apply will open in November for new applications, which will provide grant agreements commencing 1 July 2025. The program provides a two-year grant agreement, so it is best to not miss this window as the next round to apply for won’t be until July 2027.
A newer EMDG Program with recent rule changes has been announced
Recent changes have been made to the current EMDG program including changes to the eligibility criteria, eligible expenditure categories and application process.
Businesses must also meet the following eligibility criteria:
- Not have exceeded the maximum $770,000 total claim amount for your business*
- Have a minimum of $100,000 in turnover for the financial year leading up to the application for Tier One
- Have a minimum of $500,000 in turnover for the financial year leading up to the application for Tier Two
- Have a minimum of $1,000,000 in turnover for the financial year leading up to the application for Tier Three
- 2 years of trading history
- Have the intent to export to another country outside of Australia and countries that are excluded from this program**
- Grantees need to meet Australian tax obligations
- A more complex upfront submission process is in place and applicants need to have undertaken an export performance test
To help you unlock EMDG funding, here’s how Avant Group can assist:
- Our team will undertake an EMDG onboarding meeting with you, this will enable us to work with you to plan your export activities for the next two years, assess and prepare a budget and complete your Plan to Market and submission.
- We will then undertake the application process for you and submit these documents to Austrade. From here, you will receive and accept a Grant Agreement from Austrade.
- Our team will monitor your export expenditure commencing from 1 July each financial year. We love hearing form clients so you can contact us at any time for queries pertaining to eligibility of spend, what we need to complete the claim at the end of the year or any other questions about the program you may have.
- At the end of each financial year, our team will log into your accounting software, or we can manually prepare a claim using a checklist process. We will then submit this for you, and we will also then manage the EMDG audit process.
- Once this is complete, you will be paid each financial year.
*please note that there are special rules for organisations that apply as a Representative Body where the maximum claims and claim amount do not apply.
**countries currently excluded from this program are:
- New Zealand
- Any countries subject to Australian Government sanctions
Key Dates for EMDG
EMDG Upfront Applications Open: Tier 1, 2 and 3 applications open 12 November 2024.
Representative bodies applications open on 6 November 2024.
EMDG Upfront Applications Close: Once funding has been fully allocated.
EMDG Milestone Payments: These will likely occur between July – September each year, post incurring eligible expenditure.
How can Avant Group help?
When you’re a business owner, you may not have time to work through the red tape and audits required to apply for government grants.
Avant Group is your partner for grant success! We take all the hassle out of the entire grants application process, including writing the application and managing audit and reporting requirements, so you can focus on running your business. Avant Group will work with you through all the stages of the process from start to finish, this is as follows:
- Advising on eligible expenditure
- Budget projections and creating a plan to market
- Grant application write-up and submissions
- Management of grant agreement amendments, if things change
- Submissions of milestone reporting and payment documentation
- Austrade audits coverage per milestone submission to receive your cash back
Success Only Fees
Avant Group works on a Success Only Fee basis for EMDG applications, which includes the entire application and audit process.
We also offer:
- All Austrade auditing management included at no additional cost
- Hands-on file handling and preparation covering application writing and administration aspects
- A highly skilled advisory team with consultants from engineering, marketing and finance disciplines
- Government accreditation
- A dedicated account manager who will work with you every step of the way with your grants application
Want to know more? Contact us for an obligation-free assessment of your EMDG eligibility by contacting Avant Group on (03) 8567 7500 or email [email protected]