Changes Mooted to Australia’s Export Market Development Grant Scheme (“EMDG”)

On 10 September 2020 the Australian Government accepted all 10 recommendations into a review of the EMDG scheme, which essentially reimburses 50% of promotional expenses, up to A$150,000, for Australian SME companies (companies with turnover less than A$50m) exporting Australian-made goods or services.

Under the changes, Companies who meet the new conditions, which include a turnover limit reduced to A$20m, will be eligible for multi-year grants instead of having to re-apply every year. Grants can be paid under the Scheme for up to eight years in a row, which allows eligible companies to develop and implement comprehensive multi-year export marketing strategies into Asia, the Pacific and beyond. For small and medium sized businesses positioned for export, including foreign owned ones, this Scheme provides additional cashflow to develop export programs that otherwise could not be attempted.

This scheme is open to Australian subsidiaries of foreign-owned companies who develop and export products, including exports back to a parent company based outside Australia. Overseas companies using Australia as a regional HQ and as a base to produce and export products should consider the benefits of this scheme.

The review’s recommendations will give exporters more certainty about the timing of payments and they will have less red tape to deal with when the changes come into effect from 1 July 2021.

Funding for the scheme has almost doubled to almost A$210m in the financial year ending 30 June 2020. Other rule changes are applicable to account for the impact of Covid.

More information about the Scheme can be found at Austrade.gov.au (look under Export Grants) or talk to Global Alliance Partners.