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