What is the Export Market Development Grant?
Australian exporters selling Australian goods and services to non-residents may be entitled to access export grant funding from Austrade (Australian Trade Commission) which will assist them to market and promote their goods and services overseas. In certain situations goods produced overseas may comply with requirements for eligibility for EMDG.
The scheme provides a reimbursement of approximately 50% of the eligible marketing expenditure incurred to a maximum of $150,000 per year.
EMDG is a non competitive grant program. This means that if you are eligible, have incurred eligible marketing expenses and make an application you will receive a grant.
The next round of applications can be lodged between 1st of July 2021 and February 28 2021 for the clients of consultants such as Export Grant Professionals who have been approved by Austrade for extended lodgement. Self lodged applications and those prepared by other consultants not approved for extended lodgement must be lodged by 30 November 2020.
Eligibility Requirements for EMDG.
• Must hold an ABN (sole traders are also eligible)
• Have a gross taxable turnover of less than $50 million
• Have incurred at least $15,000 of promotional expenditure over a 2 year period for first time applicants (excluding expenses for New Zealand, and North Korea).
• Have current financial statements that demonstrate your business is viable
• Have a product, service or intellectual property that is of Australian origin. For products produced overseas further information is required to determine eligibility.
EMDG Categories of Claimable Promotional Expenditure
Expenses incurred in operating an overseas office or having representation for the purpose of soliciting new business and undertaking market research.
Expenses in this category that can be claimed include salaries, rent, car hire and office expenses up to a maximum of $200,000.
A minimum representation contract period of 12 months is required.
Fees and eligible expenses paid to an independent consultant or agent who is conducting market research, advertising, or soliciting new business for the claimants product or service. This category is capped at $50,000 per application.
Consultants can be engaged on an ongoing basis or for short periods for specific events or tasks. The consultant can be based in Australia or overseas.
Air travel for the purpose of international marketing is claimable. (Only 65% of first class air travel can be claimed, all other levels of air travel for the purpose of marketing can be claimed at 100%)
This may cover travel within Australia depending on the activity carried out.
For international travel in lieu of actual costs for accommodation, meals, ground transport costs and living expenses an allowance of $350 per day, per person up to 21 days per trip is claimable.
Product or Service Samples
EMDG allows for the actual cost price of the product samples (not retail) to be claimed. The sample must be given away to potential overseas buyers without charge.
Tourism samples provided in Australia to non residents are eligible. These can be claimed at 20% of the retail rate or the actual cost of providing the sample.
This category of expenses is capped at $15,000.
Trade Fairs, Seminars and Similar Promotional Events
Expenses related to the participation in trade fairs, seminars, in-store promotions, international forums, private exhibitions or similar can be claimed.
Promotional Material, Literature and Advertising.
Cost of production and printing of brochures, advertising literature, photos and promotional videos produced for and distributed overseas.
Items such as media advertisements, brochure contributions, and website advertisement and design are also able to be claimed to the extent they are for the purpose of international marketing.
Items such as media advertisements, brochure contributions, and website advertisement and design are claimable under EMDG to the extent they are for the purpose of international marketing.
Overseas Buyers/ Potential Buyers Visits
Claimable expenses include airfares (only 65% of first class airfares), other travel expenses accommodation and meals up to a maximum of $7,500 per buyer per visit.
Expenses relating to entertainment are not eligible.
This category of is capped at $45,000 per application.
Registration and or Insurance of Eligible Intellectual Property
The cost of registering patents and trademarks along with associated legal costs can be claimed through EMDG. Costs associated with Australia, New Zealand, North Korea and Iran must be excluded.
This category is capped at $50,000.
Please contact us for a more detailed explanation on how the these categories apply in your specific industry or what documentation is required to claim these expense categories.
Also further information can be found at the Austrade website www.austrade.gov.au or by contacting your local office of Austrade.