Export Market Development Grant (EMDG) is the Federal Government program helping Australian residents or entities in their export endeavors. It is administered by Austrade and aimed at a broad spectrum of industries, including tourism.
Export Grant is a reimbursement of the eligible promotion and marketing expenses encompassing Goods, Services, IP and Know-How.
Austrade promotes the Scheme as the key Australian Government financial assistance program for exporters. Australian benefits from exports are undeniable and well documented. Exports underpin the Terms of Trade and contribute to long-term and sustainable economic growth.
From the exporter’s point of view benefits of exporting are also clear and enticing. Increasingly, SMEs are finding that the globalised playing field sets exporting as a way to increase sales and profits, reduce risk, diversify and increase demand, reach economies of scale and reduce costs.
EMDG’s partial reimbursement of the eligible overseas promotional expenses is not only valuable assistance to exporters’ cash flow, but also a way to boost exporters’ competitiveness and help them gain the sustainable competitive advantage.
WHO IS ELIGIBLE?
Australian entities and individuals carrying on business in Australia. Turnover needs to be less than $50M and the minimum spend greater than $20k.
Claimants need to be principals in transaction – i.e. owing the Goods/Services/IP promoted to foreign residents.
WHAT CAN BE CLAIMED?
Eligible expenses incurred for an approved promotional purpose. There has to be a nexus between eligible marketing expenditure and the Goods/Services/IP promoted overseas. Export marketing expenditure, in essence, must relate to the expected export revenue stream. Eligible expenses fall into the following categories:
- Overseas Representatives
- Marketing Consultants
- Marketing Visits
- Free Samples
- Patents, Trademarks, Registrations
- Trade Fairs, Seminars, In-store Promotions
- Promotional Literature and Advertising
- Overseas Buyers
HOW MUCH CAN I GET?
The maximum provisional grant payable is $150,000 per claim and exporters can claim 7 times. Minimum grant is $5000. For the first two claims provisional grant is calculated at 50% of the eligible expenses. From the third claim onwards, provisional grant is calculated as the lesser of 50% of the eligible expenses, and relevant percentage of the export revenue received.
WHAT YOU NEED TO DO AS AN EXISTING OR ASPIRING EXPORTER
You need to have sound export strategy, efficient data collection and record keeping. You need to own GoodS/Services/IP that have been promoted or intended to be promoted and the marketing expenses must be incurred for an approved promotional purpose.
Deadline for the overseas marketing expenditure incurred in FY2012 is 30 November 2012. First-time claimants can combine expenditure from the two financial years i.e. from the 1/7/2011 – 30/06/2012.
If you wish to know more please contact Harvey Gartrell, Ivan Kaye, Peter Damnjanovic on 02 9262 5288.