Export-Market-Development-Grant

Expanding your business into global markets can be a game-changer, but it comes with its share of costs. Fortunately, the Export Market Development Grant (EMDG) is here to support Australian businesses in their export journey.

The Australian Government developed this initiative to assist small and medium-sized enterprises (SMEs) by offsetting some of the expenses involved in international marketing and promotional activities.

With updates to the program, the EMDG now provides targeted financial support for eligible businesses, making it easier to build a global presence. Let’s break down the EMDG, what’s new, and how your business can benefit.

What Is the Export Market Development Grant?

The EMDG helps Australian businesses reduce the costs associated with promoting their products and services in overseas markets. If your business is looking to take the next step into exporting, this grant can be a significant boost, offering co-funding for promotional activities.

Unlike traditional competitive grants, the EMDG operates under set eligibility criteria, meaning businesses that meet these requirements can access funding. It’s a government initiative designed specifically for businesses like yours, providing financial backing to make global expansion a reality

Learn how BridgePoint Group can help your business access the EMDG.

Who Can Apply for the EMDG?

Eligibility for the EMDG depends on several factors. It’s open to Australian entities such as companies, individuals, partnerships, and trusts. Importantly, your business must:

  • Have an annual turnover of less than $20 million.
  • Be promoting products or services that are primarily of Australian origin.

The EMDG is available to both new and experienced exporters, offering different tiers of support based on your export journey. Whether you’re just starting out or are looking to expand into new markets, there’s a tier designed to fit your needs.

The Three Grant Tiers Explained

The EMDG offers three tiers of financial support, reflecting the stage of your export journey. Each tier provides funding for different activities, ensuring that businesses at every level of export readiness can benefit:

  • Tier 1: Ready to Export
    For businesses new to exporting. This tier supports businesses looking to build export capabilities. Eligible businesses can receive up to $20,000 to $30,000 per year for up to two years to develop their international presence.
  • Tier 2: Exporting and Expanding
    Businesses that are already exporting and aiming to grow within existing markets can apply for Tier 2. Grants range from $20,000 to $50,000 per year, with funding available for up to three years. This tier encourages businesses to strengthen their global footprint and requires a comprehensive “Plan to Market” strategy​.
  • Tier 3: Exporting and Expanding into New Markets
    Designed for businesses ready to make a strategic leap into new markets, Tier 3 offers up to $80,000 per year for up to three years. This tier is for companies looking to transform their export approach, expand into new regions, or introduce significant changes in their export operations​.

Read: Key Steps to Take Before Expanding Markets

What Expenses Are Covered?

The EMDG covers a broad range of marketing and promotional activities, which can help you engage with new customers in international markets. Eligible expenses include:

  • Overseas representatives: Costs associated with maintaining long-term representatives abroad.
  • Marketing consultants: Fees paid to consultants who assist with market research or promotional strategies.
  • Marketing visits: Airfares and daily allowances for international business trips.
  • Trade fairs and promotional events: Costs incurred from participating in international trade shows or exhibitions.
  • Promotional materials: External expenses like brochures, websites, and other advertising materials.
  • Export training: For businesses in Tier 1, the EMDG covers expenses for export-related training​.

How Much Can You Get Back?

The EMDG reimburses eligible businesses for up to 50% of their marketing costs. However, your business must spend at least $20,000 on eligible expenses to receive funding. If your promotional activities meet the criteria, the EMDG can be a significant financial relief, helping to offset the often high costs of entering global markets​.

Recent Changes to the EMDG

Since 2021, the EMDG has shifted to a prospective model. This means businesses now apply for funding before incurring expenses, rather than after. This change allows businesses to better plan their export strategies, providing certainty in funding over a longer period. Grant agreements are now structured for two to three years, aligning payments with when your expenses occur.

Additionally, representative bodies such as industry associations can apply for grants to support their members’ export activities. These bodies can receive funding to promote Australian products or provide export training to their members

How to Apply for the EMDG

Applying for the EMDG is a straightforward process, but it requires careful planning. Here’s what you need to do:

  1. Apply in Advance: Submit your application, outlining your anticipated promotional activities for the coming years.
  2. Grant Agreement: If successful, you’ll enter into a grant agreement with Austrade, detailing the terms, conditions, and funding amounts.
  3. Document Your Activities: As your business progresses with its export plans, keep thorough records of all eligible activities.
  4. Receive Payments: Austrade will release payments based on your grant agreement milestones​

Long-term Benefits of the EMDG

By leveraging the EMDG, your business not only gains financial support but also has the opportunity to build a sustainable global presence. Whether you’re just beginning to explore international markets or looking to cement your standing overseas, this grant can provide critical assistance. With its new prospective model, the EMDG offers predictable funding that aligns with your long-term business goals.

If you need any advice, reach to Alan Baghdasaryan to utilise his expertise and experience in securing the Export Market Development Grant (EMDG) for Australian businesses with global ambitions.

Talk To
Alan Baghdasarayan
GOVERNMENT GRANTS & INCENTIVES DIRECTOR
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