EMDG is a federal government incentive program that encourages Australian businesses to start exporting, or to expand their export programs. Businesses that successfully apply for EMDG will receive cash rebates on their international marketing costs.
Some key features of EMDG are:
Maximum grants are between $40,000 and $150,000 per annum, depending on which “tier” you qualify for, and subject to scheme demand. High demand for the program could lead to significantly lower maximums.
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).
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.
Applications for the next round of EMDG will open on 6 July 2022. Applications are only open for a 6 week period and no extensions are available. This is a much shorter period than in the past so interested businesses should act quickly.
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.
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.
Milestone reports must be lodged in July-August of each year outlining your achievements and eligible marketing spend in the prior financial year. Tier 2 and Tier 3 applicants will receive payments shortly after the milestone reports have been reviewed and approved by Austrade. In some cases Tier 1 applicants may receive funding slightly earlier.
Successful applicants will be offered a grant agreement by the government which will outline the level of funding you have been approved for.
The level of funding offered to your business will depend on 3 main factors:
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.
The money provided through the EMDG program is a grant not a loan. It does not need to be repaid to the Government.
Expenses that relate to international marketing in the following categories:
Yes, there are a number of limits.
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.
Your eligibility will depend on the level of Australian inputs into the product or service that you are promoting. Factors to consider include; Australian inputs into design, Australian employment created, export revenue earned. Export Solutions can give you guidance as to the likely eligibility of your business.
Advance payments are not available to Tier-2 and Tier-3 applicants. Future rounds of the grant may allow some upfront payments to Tier-1 applicants in the first year of the 2 year grant term.
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.
No, the EMDG program was restructured effective 01/07/2021 and the ability to apply for expenses retrospectively is no longer available. The only option is to apply for future expenses.
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.