What is the Export Market Development Grant (EMDG)?

The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. It is administered by Austrade. The EMDG:

• encourages small and medium sized Australian businesses to develop export markets
• reimburses up to 50 per cent of eligible export promotion expenses above $5,000 provided that the total expenses are at least $15,000; › You spend the money first and then you claim a grant from Austrade in the next financial year
• provides up to eight grants to each eligible applicant.

WHO CAN APPLY?

If you are an Australian individual, partnership, company, association, co-operative, statutory corporation or trust carrying on business in Australia you may apply for EMDG provided you:

• had an annual income of not more than $50 million during the financial year;
• spent at least $15,000 on eligible export promotion activities during the financial year. First time applicants may combine expenses incurred in the past 2 financial years to meet this threshold;
• are the principal – you must own the product you are promoting (some exceptions apply); and
• promoted your product for export, and your product is:
  • a good made in Australia;
  • a good made outside Australia where Australia will derive a significant net benefit from its sale overseas;
  • a service, except those specified as ineligible in the EMDG Regulations;
  • a tourism service;
  • an event held in Australia;
  • an intellectual property right that mainly resulted from work done in Australia;
  • a trade mark first used in Australia, or which has significantly increased in value from its use in Australia; or
  • know-how that mainly resulted from work done in Australia.

What can you claim?

You may claim for expenditure on specific export promotion activities undertaken. You can claim:

Overseas representatives

• all reasonable costs that you pay to have an overseas representative act on your behalf on a long-term basis to market/promote your product

Marketing consultants

• the cost of engaging an arms-length consultant to undertake export market research or marketing activities

Marketing visits

• the cost of air travel during the marketing visit, including departure taxes (only 65 per cent of first-class airfares may be claimed)
• an allowance of $350 per day while you are overseas to help defray accommodation, entertainment, living expenses and ground transport costs (capped at 21 days).

Free samples

• the cost of providing free samples of the product you are promoting for export
• a maximum of $15,000 per application is claimable under this category.
• all eligible expenses should be included in your claim in your application to ensure your grant is maximised.

IP registration and related insurance

• the cost of granting, registering or extending rights under foreign laws in relation to eligible intellectual property (up to a maximum of $50,000 per application)
• the cost of obtaining insurance to protect these rights.

Trade fairs, seminars, in-store promotions

• external costs directly related to participating in an international trade fair, seminar, in-store promotion, international forum, private exhibition, or similar activity.

Promotional literature and advertising

• external costs of promotional material, such as brochures, videos, advertising and website development.

Overseas buyers

• the cost of bringing potential buyers who are non-residents to Australia for an eligible export promotion purpose
• a total of $7,500 per buyer per visit, totalling $45,000 per application.

Talk to one of our EMDG specialists at Insight Innovation to find out how the EMDG can assist your business.