Export Market Development Grant (EMDG) Strategies: EMDG Consultant

With all the recent changes to the EMDG in Australia it is harder than ever for EMDG Consultants to ensure their clients are adequately prepared. We have updated this article with new and improved information for 2024.

Many Australian businesses are unaware of the government funds and grants in place to assist them to break into the international market or continue trade with international companies. One of these initiatives bought to the Australian business community is Austrade’s Export Market Development Grant (EMDG). 

The EMDG is a national Australian Government program available to help and support Australian businesses grow business exports through promotion to overseas markets.  In a nutshell it is a cash rebate scheme administered by Australia available for developing market for your business overseas (in any country except New Zealand). It entitles businesses to a 50% reimbursement of expenses meeting certain criteria across three tiers.

The Export Market Development Grant (EMDG) is an Australian Government financial assistance program aimed at encouraging small and medium-sized enterprises (SMEs) to develop export markets. Managed by Austrade, the EMDG provides reimbursement for expenses incurred in promoting products and services to international markets. Preparing an EMDG grant can be a detailed and complex process, but with the right approach, businesses can maximise their chances of securing this valuable funding.

Previously the EMDG operated as a reimbursement model based on eligible expenditure incurred once that financial year had ended. However the program is now a tier-based grant model where funds are paid in advance in milestone payments based on approved expenditure budgets.

There are numerous strategies that your EMDG consultant can help you uncover.

Understanding the EMDG Program

The EMDG program is designed to support Australian businesses by reimbursing up to 50% of eligible export promotion expenses above a $5,000 threshold, provided the total expenses are at least $15,000. Grants are capped at $150,000 per applicant, depending on the level of funding available and the number of applications received.

For detailed information on eligibility criteria and the application process, refer to the Austrade EMDG page.

Who is eligible?

• Businesses that are an individual, partnership, company, body corporate or trust
• Businesses with a turnover of less than $20 million in the last financial year
• Businesses with an Australian Business Number (ABN)
• Businesses who own the Intellectual Property (IP) or have the rights to sell the product/service
• Businesses who have not received over $770,000 of EMDG over eight years
• Businesses that have promoted their product or service for export in an international market
• Businesses who have sold their product or service to an international consumer or company
• Businesses who are promoting the following for export: goods, services, inbound tourism, intellectual property, software, conferences and events held in Australia

What do I get?

• A 50% reimbursement of eligible expenses meeting certain criteria, with up to $150,000 available per year.
• The grant amount you can claim depends on what tier you are in, which is based on the different stages of a business export journey:
• Tier 1: Maximum of $40,000 per year over 2 years. For businesses who are new to exporting and are ready to export, but have not previously exported.
• Tier 2: Maximum of $80,000 per year over 3 years. For exporters who are already exporting and plan to expand their presence in their current markets.
• Tier 3: Maximum of $150,000 per year over 3 years. For exporters who are planning to make a strategic shift in their exporting business which includes entering a new territory, marketing a new product or targeting a new audience or demographic.
• The total grant amounts will be subject to available funds and overall demand by other applicants.

What can I claim?

• Maintaining overseas representatives
• Marketing and Business Consultants and Agencies
• Domestic trips (including food, accomodation and transport)
• International trips (including food, accomodation and transport)
• Communications and promotional material
• Advertising expenses eg: Social media advertising expenses in an overseas market
• Free samples eg: costs incurred to send free samples overseas
• Exhibitions at trade fairs, conferences, and seminars
• Promotional Literature, Communications & Advertising
• Foreign buyer visits to Australia (including airfares, food, accommodation, transport for a prospective foreign buyer visiting Australia)
• Patents, trademarks and intellectual property registrations in foreign countries
• Training activities for export readiness eg: training of staff to better market good/services in foreign countries

Our leading EMDG consultant has prepared many of these claims in the past 15 years and one thing they have noticed is that SMEs do not use these funds to their advantage. Having a well thought out and clear strategic plan for your marketing endeavours based around EMDG is a very clever way of claiming the maximum funds allowed and giving the best competitive advantage to your company. 

We also recommend getting in contact with a EMDG consultant to assist you and ensure you are getting the most out of your claim. They will manage the whole process for you from start to finish, will complete your application in a quickly and timely manner and will maximise your claim by fully reviewing your expenses and determining what is and isn’t eligible.  Often the net value of an EMDG claim will be substantially higher when completed by an EMDG Consultant compared to self-prepared claims.

EMDG Consultant Strategy Hints

• Sit down one month before the end of the financial year (or whenever you usually do your budget for the year ahead) and whilst preparing the budget – put in place a clear and detailed marketing strategy.
• Estimate all of your international sales (must be eligible for the grant) for the year
• Work out what your estimated marketing budget will be for the year
• In the first two years you can then claim 50% of eligible expenses
• Review the marketing strategy and budget and look at all of the ways you could maximise marketing efforts towards international markets, whilst still being relevant to the Australian market
• Focus on the key areas listed in ‘What can I claim?’ for specific areas to target marketing efforts

These are just a few small things to consider before you go into the financial year, as often those preparing an EMDG will review after the fact. There are many ways of maximising your business profits and the funding available to you. If you have any questions please call us or leave a comment below.

Step 1: Determine Your Eligibility

Before beginning the application process, it is crucial to ensure that your business meets the eligibility criteria for the EMDG program. The basic eligibility requirements include:

1. Business Type: The applicant must be an Australian individual, partnership, company, association, cooperative, statutory corporation, or trust.
2. Turnover: The business must have a turnover of less than $20 million during the grant year.
3. Export Readiness: The business must be promoting eligible products, which include goods, services, intellectual property, software, or know-how to overseas markets.
4. Expenses: The business must have incurred eligible export promotion expenses of at least $15,000 over the past two financial years (or one year for first-time applicants).

For more detailed eligibility criteria, visit the Austrade eligibility guide.

Step 2: Gather Documentation and Evidence

To prepare a successful EMDG application, it is essential to gather comprehensive documentation and evidence of your export promotion activities and expenses. This includes:

1. Invoices and Receipts: Collect all invoices and receipts related to your export promotion activities. Ensure they are clearly itemised and dated.
2. Contracts and Agreements: Include copies of contracts or agreements with overseas buyers, distributors, or agents.
3. Bank Statements: Provide bank statements showing payments made for export promotion expenses.
4. Travel Records: Document any international travel undertaken for export promotion, including travel itineraries, boarding passes, and accommodation receipts.
5. Marketing Materials: Compile samples of marketing materials used in overseas promotions, such as brochures, advertisements, and digital marketing content.

Austrade provides a detailed list of eligible expenses and the required documentation on their expense guide page.

Step 3: Complete the Application Form

The EMDG application form is a comprehensive document that requires detailed information about your business, export activities, and expenses. It is crucial to complete the form accurately and thoroughly. Key sections of the application form include:

1. Business Information: Provide details about your business, including your ABN, business structure, and contact information.
2. Export Activities: Describe your export activities, target markets, and the outcomes of your promotional efforts.
3. Expenses: Itemise your eligible export promotion expenses, providing detailed information and supporting documentation for each expense category.
4. Declarations: Make sure to read and complete all declarations accurately, confirming the authenticity of the information provided.

Austrade offers an online application portal, which simplifies the submission process. Access the portal and application form here.

Step 4: Review and Submit Your Application

Before submitting your EMDG application, it is essential to review all information and documentation thoroughly. Ensure that all required fields are completed, and all supporting documents are attached. Double-check for accuracy and completeness to avoid any delays or issues during the assessment process.

Once you are satisfied with your application, submit it through the Austrade online portal. Austrade will acknowledge receipt of your application and provide further instructions if needed.

Step 5: Post-Submission Process

After submitting your application, Austrade will review and assess your submission. This process may involve:

1. Verification: Austrade may contact you to verify the information provided or request additional documentation.
2. Assessment: Austrade will assess your application against the EMDG eligibility criteria and guidelines.
3. Decision: Once the assessment is complete, Austrade will notify you of the outcome. If successful, you will receive a grant offer detailing the amount of funding awarded and any conditions.

Tips for a Successful EMDG Application

1. Plan Ahead: Start preparing your application well in advance to ensure you have ample time to gather documentation and complete the form.
2. Keep Detailed Records: Maintain comprehensive records of all export promotion activities and expenses throughout the year.
3. Seek Professional Advice: Consider engaging a consultant or accountant with experience in EMDG applications to assist with the process.
4. Utilise Austrade Resources: Make use of the resources and guidance provided by Austrade, including their helpline and webinars, to ensure you understand the requirements and process.

Preparing an EMDG grant application requires careful planning, thorough documentation, and attention to detail. By following the steps outlined in this guide and leveraging the resources available from Austrade, Australian businesses can enhance their chances of securing funding to support their export market development efforts.

For further information and resources, visit the Austrade EMDG page.

Choosing an EMDG Consultant

We are an Australian creative agency with strategists and a leading EMDG consultant. Our grant writing team has worked on EMDG grants as they have evolved over the years. If you are looking for an EMDG consultant, EMDG grant writer or just more advice on if an EMDG grant is right for you, reach out to our friendly team for a no-obligation chat