Export Market Development Grant

Purpose and Program Overview

The Export Market Development Grant (EMDG) program is a valuable support system for Australian manufacturers and service providers seeking to export or expand into international markets. This long-standing initiative significantly reduces the financial burden of their export-related promotional expenses, making it more feasible for businesses to undertake these activities.

The EMDG aims to encourage the growth of Australian exports by reducing the financial burden of entering and developing overseas markets. It provides targeted financial assistance, allowing businesses to undertake marketing and promotional activities that might otherwise be out of reach.

Administered by Austrade, a reputable government agency, the EMDG program also extends its support to representative bodies that assist their small and medium enterprise (SME) members with export readiness and market diversification. The EMDG, under the guidance of Austrade, works to strengthen Australia’s overall export capacity and global trade presence.

Key Grant Details

• Grant Amount or Funding Range: Up to 50% of eligible project expenditure.
  • Tier 1: $20,000 to $30,000 per financial year.
  • Tier 2: $20,000 to $50,000 per financial year.
  • Tier 3: $20,000 to $80,000 per financial year.
  • Representative Bodies: Up to $50,000 per financial year.
• Application Open and Close Dates: Applications for grant agreements commencing on 1 July 2025 were open in November 2024. The application window closes once funding has been fully allocated.
• Eligible Industries or Business Types: Australian manufacturers and service providers that are exporting or planning to export. All entity types are eligible, including Trusts, Sole Traders, Incorporated Companies, and Not-for-profits. 
• Required Co-contributions: Businesses are reimbursed at a rate of 50%, meaning they must cover the remaining 50% of eligible expenses. Applicants must demonstrate the capacity to spend at least $20,000 of their own money per financial year on eligible activities, exclusive of the grant amount.
• Location/State/Territory Applicability: Australia-wide.

Priority Sectors

The EMDG program is open to all Australian manufacturers and service providers that meet the export criteria. There are no specific priority sectors; rather, the focus is on supporting businesses at different stages of their export journey through a tiered system.

Funding Scope

The EMDG provides financial assistance across four tiers, depending on a business’s export readiness and goals:

• Minimum Grant Amount (per financial year): $20,000 for Tiers 1, 2, and 3.
• Maximum Grant Amounts (per financial year):
  • Tier 1 (New Exporters): Up to $30,000.
  • Tier 2 (Expanding in Current Markets): Up to $50,000.
  • Tier 3 (Shifting to New Markets): Up to $80,000.
  • Representative Bodies: Up to $50,000.
• Eligible Funding Duration: Grant agreements are typically for two financial years. Businesses are eligible for up to 8 years of EMDG claiming over their lifetime.

Eligibility Criteria

• Business Entity: Must operate an Australian Business Number (ABN).
• Legal Status: Can be a Trust, Sole Trader, Incorporated Company, or Not-for-profit.
• Turnover Requirements (for the financial year preceding the application):
  • Tier 1: Minimum $100,000 turnover.
  • Tier 2: Minimum $500,000 turnover.
  • Tier 3: Minimum $1,000,000 turnover.
  • Overall turnover for Tiers 1, 2, and 3 must be less than $20 million.
• Trading History: Must have at least two years of trading history under the same ABN.
• Export Intent: Must intend to export to a country outside of Australia, excluding New Zealand and countries subject to Australian Government sanctions.
• It’s crucial that grantees meet all their Australian tax obligations. This is a key requirement of the EMDG program.
• Export Readiness: Applicants must demonstrate export readiness, which involves a more complex upfront submission process that includes an export performance test.

Eligible Activities and Expenses

The EMDG reimburses 50% of a range of export-related promotional expenses. Eligible activities and expenses include:

• Developing a “Plan to Market” to outline export activities.
• Costs paid for export-related promotional activities within the financial year of the grant agreement.
• Various export marketing and promotion activities.
• Export training (for Tier 1 applicants and Representative Bodies).
• Obtaining an export readiness assessment.
• Marketing consultants.
• Marketing visits.
• Trade fairs and seminars.
• Promotional and advertising material.
• Overseas buyer visits.
• Free samples (with a $15,000 limit).
• Intellectual Property registration offshore.

Assessment Process

• Nature of the Grant: Competitive.
• Evaluation Criteria: Applications are assessed by Austrade. The process involves an upfront submission including a “Plan to Market” and an export performance test. Applications are evaluated on a first-come, first-served basis until funding is fully allocated. Key criteria include meeting all eligibility requirements for the chosen tier and having a high-quality, specific Plan to Market.

Recent Updates about Export Market Development Grant

The EMDG program has undergone recent changes. It transitioned from a reimbursement model to a grant agreement model, providing more upfront certainty for applicants. Key updates include:

• Tiered Funding Structure: Introduction of four distinct tiers based on export readiness and goals.
• Application Process: A more complex upfront submission process is now in place, requiring a “Plan to Market” and an export performance test.
• Application Timing: The application window opens in November for grant agreements commencing 1 July of the following year, typically offering a two-year grant agreement. Round 4 applications for Tiers 1, 2, and 3 opened on 12 November 2024, and for Representative Bodies on 6 November 2024.
• Funding Allocation: Funding is limited, and applications close once funds are fully allocated per tier. This means not all eligible applicants may receive funding.
• Eligibility Refinements: Changes to turnover requirements for each tier, along with a renewed focus on tax compliance and a minimum two-year trading history.

Application Tips

• Apply early, as funding is allocated on a first-come, first-served basis and rounds close when funds are exhausted.
• Thoroughly review the eligibility criteria for the specific tier to which you intend to apply.
• Develop a comprehensive and high-quality “Plan to Market” that clearly outlines your proposed export activities and expected outcomes.
• Ensure all financial documentation, including turnover figures and evidence of your capacity to spend, is ready.
• Meet all Australian tax obligations.
• For Tier 1 applicants, ensure that you have completed an export readiness test or received approved export training.

Where to Get Help

Consider consulting with a professional grant specialist, such as Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit relevant government websites for application templates and further guidance.