Boost in budget for EMDG
Boost in budget for Australian businesses marketing overseas – Export Market Development Grant
In the 2019-20 Australian Federal Budget, handed down on 2 April 2019, there was a boost of $60m to the Export Market Development Grant Scheme (EMDG). It seems the government has heeded calls from the export sector to do more to support small and medium-sized businesses in promoting their products and services to overseas markets.
Funding for the scheme had been frozen at $131m since 2014, and high demand for the scheme had forced the government to reduce businesses’ entitlements to grants. It was recently revealed by The Australian Financial Review that this funding shortfall was forcing some local businesses to pare back global expansion ambitions.
The Export Market Development Grant (EMDG)
The EMDG Scheme is a financial assistance program for small and medium-sized businesses with a turnover of less than $50m that are exporters or aspiring exporters. It offers to reimburse up to 50% of eligible export marketing and promotion expenses above $5,000.
There are types of activities that businesses can claim under the EMDG:
- Overseas representatives: funds to pay someone who is based overseas to market your product
- Marketing consultants: costs to use someone to investigate exporting your product
- Marketing visits: cost of flights and a daily allowance of $350 to visit and promote overseas
- Free samples: the cost associated with providing those samples to a target market
- IP registration and related insurance: the cost of granting these and extending rights under foreign laws
- Trade fairs, seminars and in-store promotions: costs related to participating in any of these activities
- Promotional literature and advertising, including Adwords and online promotional costs
- Overseas buyer visits: the costs of bringing potential buyers to Australia
EMDG a popular grant for Australian SMEs
More than 3,500 businesses generating exports of $3.8bn accessed the scheme last year. Three quarters of recipients were small businesses, reporting annual income of less than $5 million. Two-thirds of recipients were from the services sector, 29% in manufacturing and 4% in primary industry.
Prior to the announcement of the additional funding by Trade Minister Simon Birmingham, he said
“This funding boost will help Australian companies get more exposure in international markets, allowing them to develop brand recognition and form relationships with potential customers. It will make a real difference to Australian businesses that are thinking globally about their business, whether they are exporting for the first time.”
How can Greenwich & Co help you?
Greenwich and Co are experienced in preparing successful EMDG claims. We work with companies to develop strategies to maximise EMDG refunds and can assist with each step of the compliance process.
Speak to us today about how we can assist you in assessing your business’s eligibility or in managing any stage of the submission and compliance process.