The Latest And Top 10 EMDG Changes for Exporters

A number of significant EMDG changes have been implemented to the Export Market Development Grant (EMDG) program with the goal of increasing the export potential of Australian businesses. Regarding the revised scheme, Austrade responded to important questions and concerns. The top ten updates for exporters to be aware of are as follows:

1) Clarifying Existing vs. New Markets

Three separate tests have been implemented by Austrade:

• Currently Exporting: If you are already exporting, you must provide two invoices for export sales: one must be from 2023/24, and the other must be from within 18 months of the application date.
• Existing Market: Selling to a country during the last 18 months of the year (July–November 2024) is considered an existing market.
• New Market: No sales made before the application process begins.

2) Tier 2 and 3 Requirements

The “currently exporting” condition can only be satisfied by applicants who have an export sale in 2023/24. There are two 2024/25 export sales that fail to meet this criterion.

4) Bank Statement Requirements

To prove that you have the financial means to pay the minimum threshold of $20,000, you will need to provide a bank statement from around the time you apply. You will need to include your most current bank statement along with a report or statement detailing your November transactions.

5) Generic Marketing Expenses

Verify fair distribution; only sections about important new markets will be eligible.

6) Tier Limits and Nil Grants

The grant years per Tier are now calculated without milestone reports for Rounds 1-3.

7) Related Companies

Format and information requirements remain the same as in previous years.

8) Commensurate Definition

The purpose of having a deliberately wide definition of “commensurate” is to guarantee that serious exporters get meaningful grants. The application or marketing strategy should address any concerns about the business’s relatively small exports in relation to its size.

9) WA Lodgment Time

Application lodgment time is set at 10 am AEDT (7 am WA), which is considered reasonable.

10) First Come, First Served

It is highly recommended to submit your applications early since they are processed in the order they are received.

Additional Key EMDG Changes

In addition to the above points, several other significant updates have been introduced in the EMDG program:

• Shift to Upfront Grant Agreements: To avoid having companies pay before they can claim, the EMDG has switched to a grant agreement method that pays out in advance according to scheduled export marketing efforts.
• Increased Focus on Results: To ensure that funds are allocated in relation to real export growth, applicants are now required to detail their planned marketing efforts and expected outcomes.
• Broader Range of Eligible Expenses: The revised EMDG scheme now includes more types of promotional activities, such as digital marketing and e-commerce sites.
• Revised Eligibility Criteria: Stricter minimum annual turnover requirements have been introduced:
  • Tier 1: Minimum $100,000 turnover
  • Tier 2: Minimum $500,000 turnover
  • Tier 3: Minimum $1 million turnover

The goal is to reduce the pool of applicants to include only those companies with a good chance of becoming successful exporters.

• Application Process Changes: In order to provide greater transparency on the distribution of funds, applications will be reviewed in the order they were received.
• New Document Upload Capability: The filing of documents via the Austrade site has been the subject of recent sessions as a major improvement. It used to be more difficult for candidates to submit their documents since they could only upload one per the requirements. Currently, Austrade is in the process of consulting with its IT department to enable the uploading of multiple documents. Improving the clarity and structure of their applications, exporters would be able to more readily provide detailed supporting documentation with this change in the Austrade portal

Preparing for the EMDG Changes

Here are some things to keep in mind to make sure you have a seamless transition into this updated program:

• Take the time to read the qualifying requirements.
• Get all the necessary paperwork ready, such as invoices for export and bank statements.
• Get an understanding of how money is distributed and what each tier requires.
• Make use of what is at your disposal, such as Austrade’s free export preparation training.

Conclusion:

Ultimately, Australian exporters have an excellent opportunity to increase their worldwide reach and get large cash under the revamped Export Market Development Grant (EMDG) program. Now is the perfect opportunity for businesses to be ready and make the most of these benefits since there have been significant EMDG changes made to streamline the application process and increase grant amounts.

If you are an exporter requiring support with the complicated EMDG application procedure, Pattens is ready to help. We can help you submit an application that is thorough and up-to-date because of our knowledge of government grants, particularly the EMDG and other export awards. Get in touch with us immediately to make sure your export trip goes off without a hitch—don’t let the application procedure overwhelm you! Take advantage of the financial support offered by the revamped EMDG program.

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