The new EMDG rules apply to marketing spend from July 2021 onwards. The grant is approximately 50% of eligible marketing expenses with the maximum grant being between $40,000 and $150,000 per annum depending on the Tier you qualify for (and subject to scheme demand). Grant approvals will be for 2 or 3 years of planned spend, with grants being paid after milestones are achieved.
If you have expenses to claim that you paid in the past 2 financial years (ending 30 June 2021) you may be eligible under the last year of the Cash Rebate rule.
For eligible businesses who are
new to export.
For eligible exporters who plan to expand
their marketing activities.
For exporters who are making a strategic shift.
The first step is to determine whether your business is eligible – below are the key requirements (without the legalistic language and detail – we can talk that through with you).
Exporting or intending to export
Have an ABN
Have not previously received 8 EMDG rebates
Annual income (turnover) of less than A$20 million
Annual revenue (turnover) of less than $20 million
Have not previously received the maximum funding cap of $770,000 (since July 1990).
Seeking to sell or licence one of the following
There are 9 categories of expenses to claim.
Online marketing including Facebook, Instagram, Google, your website and more. Also brochures, magazine adverts, videos, store posters.
TIP: Using geographic targeting and good statistical monitoring can result in a higher claim.
Long-term engagement of a person or company overseas to market your products or services.
TIP: One of your team (including a director) can relocate overseas and be your overseas representative.
Travel to meet international clients for a marketing purpose. Airfares, ground travel, accommodation, food and incidentals are eligible. Capped at 21 days per trip.
TIP: Documents are best collected before and during the trip, so speak to us for advice early.
Manufacturing and sending free product samples to potential overseas buyers. For tourism applicants this includes famils.
TIP: You need to be able to prove that the samples were given away for free and for a promotional purpose.
Participating in an international trade fair, forums and conferences, to promote your product or service.
TIP: This can include private promotional events you run and in store promotions.
Bringing overseas buyers to Australia to evaluate your goods, services or IP.
TIP: Keep the documents inviting the buyer to Australia and records of activities.
Consultants engaged to undertake export market research or marketing activities.
TIP: They can be based in Australia or overseas.
Registering and maintaining registration of IP in a foreign country (excluding NZ).
TIP: Often group structures give rise to multiple EMDG applications.
Training for your team to enhance your skills to market internationally.
TIP: Only eligible for Tier 1 applicants.
Here’s an indicative timeline for the EMDG Up Front program.
Round 1 – marketing spend from July 2021.
Round 2 – marketing spend from July 2022.
We provide a full service for the entire process to maximise your grant.
On the best approach for your business to access EMDG, including Tier selection.
Identify the key documents needed and prepare a quality application.
Negotiate variations to the grant agreement.
Prepare and lodge the milestone reports and stand alongside you, with strong technical knowledge, to get acceptance of items claimed.
For your current and future grants.
Our experienced team is located across Australia, contact us to find out whether you are eligible and how much you may be entitled to. Contact us directly or let us know a day and time to call you.
Note that the information is all subject to change as the legislation and Rules emerge.
Contact us to receive updates as they come to hand.
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:
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.
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.