Export Grants (EMDG) – New rules 2021/22

For the 2021/22 year onwards you will submit your proposed marketing spend and supporting information, and you will have your grant approved up-front. Grants will be for either 2 or 3 years of planned expenditure.

Grant monies will be paid after you reach “milestones” – having done the marketing activities and paid the expenses.

EMDG is an entitlement program – if you meet the eligibility criteria you will receive a grant.

This is not something we can answer in a quick paragraph or by getting you to answer a list of set questions because every business is different. EMDG does apply to most industries so if you are promoting anything at all overseas then it is definitely worth finding out. The quickest way to do this is to give us a call or arrange for us to call you at a convenient time. There is no obligation or cost involved – we are happy to provide up front advice so that businesses can proceed with confidence, and know what documents to prepare and keep.

Grant Approval this year will likely be in late February 2022.

Grant payments will be made after you have done marketing activity and lodged Milestone reports, and satisfied assessment requests.

Initially grants will be an annual payment – after milestones are assessed.

So for marketing spend during 21/22 financial year you could receive the grant monies in about August 2022.

It is likely that this timeline will improve in future years.

That depends on 3 main things;

Firstly, on which “tier” you qualify for. These range from $40,000 pa to $150,000 pa.

Secondly, it depends on how much you spend on eligible marketing – the grant program covers 50% of expenses.

Thirdly, grant offers may be reduced to match demand with the government funding pool.

Tier 1 – for businesses new to export – grants of up to $80,000 over 2 years.

Tier 2 – exporters planning to expand – grants of up to $240,000 over 3 years.

Tier 3 – exporters making a strategic shift – up to $450,000 over 3 years.

Yes. You can apply for whichever Tier that suits your plan to market.

You could start at Tier 1 (if you have never exported) for your first 2 year grant, and then move to Tier 2 or straight to Tier 3 for your next grant.

Or, if you have exported before then you may enter at T2 or even T3, and re apply again in the same Tier or a different one.

Tier selection is important.

Applications open 16 August 2021, for grants for 2 or 3 years planned marketing spend.

Remember this is for marketing expenses from July 2021 onwards – the existing scheme remains in place for spend up to that date.

The money provided through the EMDG program is a grant not a loan. It does not need to be repaid to the Government.

Details not yet available but likely similar categories as the existing EMDG program – expenses across categories of marketing activities, to the extent they are for promotion to overseas buyers:

• Social media, website, advertising, videos endorsements and more
• Travel to overseas markets (airfares and an allowance)
• Trade Fairs
• Marketing consultants
• Overseas Representatives
• Free samples
• Overseas buyers travel
• Patents and trade marks
• Training to enhance your marketing (Tier 1 only)

There are no caps on any of the 9 expenditure categories.

However, your grant will be limited to the amount approved for each year covered by the grant agreement.

The grant covers 50% of your eligible marketing spend – so your marketing spend needs to be double the grant amount to get that maximum grant.

Yes you can. Grants do not have to be consecutive.

Also, if your plans change midway through, say a 3 year grant agreement, we can seek a Variation to your grant agreement.

This is often the case – so we apportion the costs on a fair and reasonable basis. The basis and calculations can have a significant effect on your grant amount, so it is worth talking this through at an early stage so you can keep the key information to support and maximise your claim.

No.

You may still be eligible. The existing scheme recognises that Australian businesses may have their goods manufactured overseas. There is provision for a submission to the government showing the significant economic benefit Australia receives through your Australian designed goods, through revenue employment, tax paid and more. This aspect is likely to continue.

The program does allow for requests for early instalments of the grant monies, but at this stage we understand you will have to pay first, then lodge that request, along with a milestone report.

Generally no under the existing scheme – however there is an exception where that person is based overseas and qualifies as an overseas representative.

No – marketing costs to NZ are not eligible.

All of our EMDG team have worked with EMDG for between 4 and 22 years, and have strong financial and business backgrounds, including in many cases qualifications in accounting, international business or a range of other studies from agriculture to foreign languages.

We share our EMDG knowledge amongst the team, we have strong technical knowledge, lots of experience on all aspects of the program, including the legislation and enforceable guidelines, and we have a very high success record.

We are not afraid to argue your case, to negotiate the maximum grant for you. EMDG is what we do, and have done for many years.

We work nationally and our advisors are based in NSW, Victoria, WA and ACT. We travel to other cities and regions, and are equally happy to consult by phone, video and email – we have been doing so for years.

We hear this several times a year – sometimes it is true as not all business models fit the scheme. But often it is just that they didn’t get the right advice, or, didn’t get asked the right questions. Give us a call – 10 minutes is all it might take to determine whether you are eligible.

Yes, normally online businesses advertise using google adwords, facebook, Instagram, website, bloggers, influencers etc and all of these are eligible expenses.

Yes, we can help find out if you have any prior EMDG grants history. If your business has had less than 8 claims then you may be eligible for more.

Grants history will follow applicants from the previous scheme to the new scheme – so if you have received 8 grants under the old scheme you will not be eligible for more.

If you have had less than 8 grants before, then there is a transition arrangement.

Generally no, you would not be eligible as you are providing services to an Australian business rather than exporting your own goods or services. The businesses you work for may be able to claim your fees in their own EMDG applications so you should make them aware of this.