The highly anticipated next round of the Export Market Development Grant (EMDG) program is set to open for applications in November 2024, with a few notable changes since the last funding round. While we recently covered these changes at a high-level, here we take a deeper dive into what’s new and explore ways your SME can maximise the EMDG.
For a program overview, a recap of funding tiers and information on the application process, please read our Changes to the Export Market Development Grant article here.
A closer look at key changes
Designed to provide businesses with greater planning certainty, support successful exporters at various stages of their journey, encourage market diversification, and enhance accountability and compliance across the program, the key changes to the program are as follows:
1. First-come, first-served funding allocation: Applications will now be assessed, and grants awarded, in the order that applications are received until all funds are fully allocated. Unlike previous rounds, this means that not all eligible applicants will receive funding, allowing successful applicants to receive a more meaningful grant amount.
Start preparing your application now so you have sufficient time to gather the necessary documents and put your best foot forward. The earlier you submit, the more likely you’ll receive funding if your business is deemed eligible.
2. Larger grant amounts and greater clarity: Maximum grant amounts will be set at a meaningful level and will be clearly outlined for each tier:
- Tier 1: This tier provides up to $30,000 per financial year for two years.
- Tier 2: Tier 2 offers up to $50,000 per financial year for up to four years.
- Tier 3: Tier 3 provides up to $80,000 per financial year for up to four years.
3. Enhanced eligibility criteria for SMEs: The EMDG program eligibility criteria has been adjusted to better reflect characteristics of successful exporters. In addition to the requirement to have a turnover of less than $20 million in the previous financial year and be exporting or ready to export eligible goods, services, events, IP, know-how, or software of substantial Australian origin (which remain unchanged from the last round), applicants must also:
Be an Australian entity (e.g., sole trader, trust, partnership, company) that has held the same ABN for at least two years.
Meet minimum turnover requirements for the 2023-24 financial year:
- Tier 1: Over $100,000
- Tier 2: Over $500,000
- Tier 3: Over $1 million
Demonstrate capacity to spend at least $20,000 on marketing and promotional activities per financial year, exclusive of the grant amount.
4. Focused support for market diversification: Tier 3 grants are now tailored to encourage experienced exporters to target key international markets and pursue broader opportunities for market diversification. Austrade, with input from businesses, has identified 27 key markets for these applicants, helping them strategically expand their global reach:
- Bangladesh
- Brunei Darussalam
- Cambodia
- Canada
- China
- Fiji
- France
- Germany
- Hong Kong
- India
- Indonesia
- Italy
- Japan
- Laos
- Malaysia
- Netherlands
- Papua New Guinea
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Timor-Leste
- United Arab Emirates
- United Kingdom
- United States
- Vietnam
AusTrade has said these markets represent exporters’ diversification interests and preferences. They also prioritise Southeast Asian countries as recommended in Invested: Australia’s Southeast Asia Economic Strategy to 2040.
5. Improved support for representative bodies: Industry associations and other representative bodies can access grants of up to $50,000 per financial year to support their SME members. These funds can be used for training and promotional activities that directly benefit SMEs, particularly those with a turnover under $20 million. To qualify, representative bodies must submit detailed plans demonstrating how their initiatives will benefit members and deliver clear outcomes.
6. Stronger compliance measures: To maintain the program’s integrity, stricter compliance requirements have been introduced, including enhanced tax compliance and ethical business practices. The definition of ‘eligible export product’ has also been revised to ensure that goods are of substantial Australian origin.
Given these changes, it’s important you speak to an advisor who can help you determine whether your business is eligible and if so, how to submit an application that covers all requirements.
Application process
Applications for the EMDG program must be submitted online, accompanied by supporting documents that verify the applicant’s identity, eligibility, and export marketing intentions. The required documents vary based on the grant tier, the nature of the export activities, and whether the applicant is an SME or a representative body.
Applicants must also submit their 2022-23 and 2023-24 Balance Sheets and Profit and Loss Statements to demonstrate turnover, along with bank statements showing their capacity to spend $20,000 on marketing activities per financial year. Successful applicants will receive a grant agreement specifying the funding amount and duration, with payments made via milestone payments within 14 days of submitting a milestone report.
Key dates for Round 4
- Representative body applications: Open 6 November 2024.
- Tier 1-3 Applications: Open 12 November 2024.
- Application close: Once all funding has been allocated.
Don’t miss out on this opportunity to take your business to the global stage.
If you need assistance determining your business’s eligibility or applying for the Export Market Development Grant, contact your local William Buck advisor.
