The Grant that will Help you Grow your Business Overseas

Are you a small-to-medium sized exporter looking to expand your business overseas?

 

Then you should be familiar with the Export Market Development Grant (EMDG) program, which provides critical funding to businesses like yours.

 

The Government has finalised its consultant process and has implemented sweeping changes to this program. But don’t worry! We have read the fine print and are here to help you navigate your next EMDG application.

 

What do you need to know?

 

• The Eligibility Criteria Has Changed

 

Bad news for business with turnover $30m – $50m, as these businesses are now excluded from the program. Moving forward, funding will only be accessible to businesses with turnover less than $20m per year.

 

• There’s More Paperwork

 

You will need to submit a ‘Plan to Market’ – an outline of how your promotional activities will support your international marketing strategy. We would expect that more detail will equal less audit activity (now called “reporting”).

 

• Sharper Timelines = Quicker Outcomes

 

Once your EMDG application has been received, reviewed, and approved; a grant agreement will be issued. Austrade will begin issuing these agreements from 1 December, and all agreements should be delivered over the following 10 weeks.

 

• You have More Freedom with your Grant Money

 

Good news! There is no limit to the amount you can claim for all categories of eligible expenses. As many businesses will know, overseas patents are one of more expensive items on your business shopping list, so this new rule should help.

 

As previously detailed, businesses are limited by the amount they can claim each grant year, depending on which tier of the program they are applying under.

 

Finally, the overseas travel per diem allowance is getting more complicated. The flat $350 per diem will be replaced by varying per diem amounts, depending on which country you travel to, and your salary level.

 

• Promotional Activities are Better Supported

 

All eligible promotional spending will be granted, even if it does not align with your submitted budgeted costs. After all, it is difficult to plan what your businesses future expenses might be – like that overseas marketing trip you might take in three years’ time.

 

• Payments Will Be Made Quicker

 

Though there will be a transition period. The old and new programs will operate simultaneously, and therefore first milestone payments under the new program aren’t expected to be made until 1 July 2022.

 

In future, payments are expected to be made earlier and even in advance of when the costs are actually incurred. Meaning you can plan your spending better.

 

• Detailed Reporting is a Must

 

Austrade still has the power to request an audit (now called Reporting), detailing your actual expenses. Your Grant Agreement will include reporting deadlines, and we will assist you in preparing these Reports.

 

These reports will range from:

 

• A statement from your business outlining your overseas marketing costs paid; to
• A full audit where tax invoices, bank statements, and other support is requested

 

 

So, what hasn’t changed?

 

The EMDG program will still ultimately be an entitlement program, where any business that meets the eligibility criteria will be entitled to the grant.

 

SMEs will still have access to grants up to a total of 8 years.

 

I’m ready to apply! What should I do next?

 

Applications are now open and will strictly close 30 November 2021. You can apply yourself, or you can use the assistance of an EMDG consultant such as the Macro Group.

 

We are currently assisting our clients in applying for their grants under both the old and new EMDG program.

 

If you would like to discuss the program and your eligibility, contact one of our team members today.