Export Market Development Grant (EMDG) 2021/22 new rules

For the 2021/22 year onwards you will submit your proposed marketing spend and supporting information, and you will have your grant approved before you spend. This gives you confidence and certainty of the grant you will receive. Grant monies will likely be paid on a milestone basis.

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.

We don’t have the detail yet – but the word is that applications will be processed promptly. A complete, comprehensive and well structured application will likely proceed to approval faster.

Payment of the grant will likely be on negotiated milestones.

The detail is yet to be announced, but we expect you will receive up to 50% of the eligible marketing expenses you plan to spend – subject to caps on various categories, and the cap on the maximum grant depending on which “stage” that applies.

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

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

Stage 3 – exporters expanding into new markets – up to $450,000 over 3 years

Yes you will be able to progress through the stages. There might be opportunity to enter at a higher stage.

Details not yet available but likely you can apply throughout the year, probably from June 2021 or maybe a little earlier. 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

Yes, some categories will likely be “capped”.

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.

Details are not yet available.

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.

This will be in the scheme rules that are not yet announced – but it seems possible that milestone payments might be available.

Generally no under the existing scheme – however there is an exception where that person is based overseas and qualifies as an overseas representative. It is likely that these principles will be retained.

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 current 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 will be 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.