Export Market Development Grants
Funding your expansion across the globe
The Export Market Development Grant (EMDG) is administered by Austrade and is the Federal Government’s key funding program for aspiring or current Australian businesses seeking export opportunities for eligible goods and services.
Who is eligible to apply for the EMDG program?
Unlike most other Federal Government grants, the EMDG is a non-competitive program. This means if you meet the program’s eligibility criteria, you are eligible to receive a grant of up to $150,000.
Although there are a number of requirements that need to be met in order for a business to apply for a grant under the EMDG program, key eligibility criteria includes:
- Claimants must be an Australian individual, partnership, association, company, co-operative or statutory corporation or a trustee on behalf of a trust;
- turnover must not exceed $50 million in the grant year;
- must be promoting the export of goods or delivery of services outside Australia; and
- have spent at least $15,000 on eligible export promotional activities.
If you check all the boxes, your business may be eligible to claim a grant of up to $150,000 per year, for a maximum of 8 grant years, noting the first grant years can comprise of two consecutive years.
What expenses can be claimed?
The costs associated with establishing and maintaining one or more overseas representatives (either individuals or an overseas office) are eligible under the EMDG program. To be eligible, the overseas representative must be engaged to conduct promotional or marketing activities on behalf of the claimant, for at least a 12-month period.
This category of EMDG expense is capped at $200,000 per claim.
The costs associated with engaging with a consultant to conduct market research, develop marketing plans or conduct other approved promotional activities related to an overseas market are eligible under the EMDG program, as long as the marketing consultant is not closely related to the EMDG applicant. Of note, the marketing consultant can be located either in Australia or overseas.
This category of EMDG expense is capped at $50,000 per claim.
Overseas Marketing Trips
Costs incurred by the EMDG applicant or its agent on trips to market eligible goods or services overseas are eligible under the EMDG program, as long as the marketing trips are for approved promotional purposes.
This category of expense covers airfares, and provides a daily allowance of $350 per eligible person, (up to a maximum of 21 consecutive days per trip), to cover accommodation, meals, etc.
It is important to note that, to be eligible to claim an overseas marketing trip, travel must originate and finish in Australia.
There is no limit to this category of expenditure, other than the total EMDG grant limit.
Product Promotion (Free Samples)
The actual cost (plus freight) of providing free product samples to potential overseas buyers is an eligible EMDG expense, as long as the sample is the exact product the applicant is seeking to sell.
This category of EMDG expense is capped at $15,000 per claim.
Trade Fairs and Conventions
The external costs associated with the EMDG applicant or its agent attending or participating/ exhibiting in an overseas trade fair, conference, in store promotion, international forum, private exhibition or similar promotional events are eligible EMDG expenses as long as the activities were undertaken for an approved promotional purpose.
Some of the costs associated with attending or exhibiting at domestic trade fairs, conventions, etc, may also be an eligible EMDG expense in specific circumstances, with the proportion of cost’s often determined by the number of international participants.
This category of expense does not include the salary costs associated with the applicant’s personnel attending such trade shows, exhibitions, etc.
Promotional Literature & Advertising Material
The external costs associated with generating promotional brochures, literature, promotional videos, advertising and other promotional material for an approved promotional purpose in export markets is an eligible cost under the EMDG program. This category of cost is often apportioned between the use of the promotional material in domestic verses export markets, particularly when claiming website development and hosting costs.
Costs associated with the airfares, accommodation, transport, meals, etc, associated with bringing an overseas based buyer (or potential buyer) to Australia to evaluate manufacturing capacity or supply of services capability are eligible under the EMDG program.
This category has a limit of $7,500 per buyer, with a maximum cap of $45,000 per claim.
The cost of registering patents or trademarks outside of Australia are eligible expenses under the EMDG program which includes insurance associated with eligible intellectual property expenses.
This category of expenditure has a maximum cap of $50,000 per claim.
What EMDG Services do PPM Offer?
At PPM, Specialisation is the Key to unlocking exceptional outcomes for clients. To assist clients access the maximum possible refund under the EMDG program, PPM has a team of experienced EMDG Consultants who specialise in unlocking the value of their client’s export focused activities.
Our EMDG Specialists take the time to understand your EMDG needs and will then help you identify the optimum use of resources to enable your business to achieve the maximum possible EMDG claim. You can be confident that by engaging PPM’s EMDG Specialists to prepare and lodge your EMDG application, we will identify all possible eligible expenses and supporting documentation to assist in maximising your EMDG claim, a process that will provide your business with access to a much higher EMDG grant, compared to claims prepared and lodged by companies themselves.
PPM’s EMDG specialist consultants have significant experience in providing what is referred to as a “Full EMDG Preparation and Lodgement Service”.
As part of this Full Service, you PPM EMDG Specialist Consultant will:
- Arrange an initial meeting or conference call to discuss preliminary eligibility to the EMDG program, identify any barriers that could impact your business gaining access to the maximum possible EMDG claim and to assess the level of documentation available to support your businesses’ EMDG claim application
- Assistance in identifying and collating all essential documentation (including source data, source invoices, emails and financial records) required to support each category of EMDG expenditure. This also includes identifying if there is a need for additional position papers (such as a ‘Separate Net Benefit’ statement in instances of overseas manufacturing), which may be required in order to access the maximum possible claim
- Preparation of an ‘audit ready’ file, capable of supporting your EMDG claim in the event of an Austrade review. It is important to note that all first-time EMDG applicants are reviewed by Austrade, as are applicants with significant expenses related to overseas representations or marketing visits
- Lodgement of the EMDG application with Austrade, including handling any follow up correspondence with Austrade
- In the event of an Austrade Review, either attendance at an ‘on site’ visit by Austrade or assistance with collating a response to an Austrade ‘desk top’ review.
The approach taken by your PPM EMDG specialist consultants is very ‘hands on’, an approach that has delivered clients the maximum possible outcome, while providing Austrade with very little opportunity to reduce your claim during an audit. This hands-on approach enables PPM’s EMDG clients to access the highest possible EMDG benefit available under the program.
What does a Full-Service approach cost?
At PPM, we believe that our EMDG specialist consultants are able to deliver exceptional outcomes for our clients whilst providing outstanding value. We’re willing to back our methodology and reputation by offering clients no up-front fees for this service. Our fee structure places all the risk on PPM, with our fee linked to a percentage of the grant value, with a minimum fee in place. Whilst the ‘percentage of grant’ fee arrangement is an industry standard amongst EMDG practitioners, many EMDG consultants do not offer a ‘full service’ for this fee, instead relying on their clients to do most of the heavy lifting associated with preparing their EMDG claim.
In order to discuss your EMDG needs and how PPM’s specialist EMDG consultants can help your business access the maximum possible EMDG claim, please contact Tracey Murray 3557 2111 or email@example.com .