EMDG – Funding shortfall leads to reduced 2nd tranche payments

24 June 2015

EMDG – Funding shortfall leads to reduced 2nd tranche payments

Austrade have advised that grants of over $60,000 will not be paid in full but will instead receive 65.28 cents in the dollar for the amount over $60,000.

By way of explanation, EMDG is funded from a fixed funding pool which is currently $137.9M.   To allow for over subscriptions a 2 payment system is used.  For the 2013/14 expense year the government guaranteed that all grants up to $60,000 would be paid in full after the claim was assessed by Austrade. Applicants claiming amounts over $60,000 would receive $60,000 directly after the grant was approved with a balance payment to be received in June 2015.  The amount of the balance payment would depend on the level of remaining funds in the pool.

The reduced second tranche payment is largely due to an 18% increase in applications over the previous grant year. The number of applicants in the 2014/15 year (for 2013/14 expenses) was 3,195.

It is highly likely that the guaranteed amount for this year applications will be less than $60,000 and an announcement on this is expected by the end of June. Applications for expenses incurred in the 2014/15 year open on 01 July 2015.



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