In brief – Businesses planning to export should be aware of available assistance
The Export Market Development Grant "EMDG" scheme aims to support small to medium sized businesses to break into export markets by reimbursing up to 50% of the expenses relating to export promotion. It applies not just to the export of physical goods but also the export of services. In this way the scheme applies to service providers such as architects, engineers and quantity surveyors.
What are the financial benefits of the EMDG scheme?
Under the scheme, Austrade will reimburse up to 50% (to a maximum of $150,000) of eligible export promotional expenses above $20,000. First time applicants may claim expenses incurred over the last two financial years.
In 2011-12 close to 3,000 exporters received assistance through the EMDG scheme. The total value of the grants for that period was $125.6 million.
Who can apply for the export grant?
Any Australian individual, partnership, company, association, co-operative, statutory corporation or trust that has carried on export promotion activities during the year can apply for a grant.
To be eligible for the scheme, the business must have income of not more than $50 million in the grant year and must have incurred at least $20,000 of eligible export promotion expenses.
What expenses you can claim under the EMDG?
The EMDG supports nine categories of promotional activities. This includes:
- Overseas representation – Costs of maintaining an overseas representative on a long-term basis in a foreign country
- Marketing consultants – Cost of engaging a consultant to undertake market research activities
- Marketing visits – Cost of travel made for the purpose of export promotion
- Communications – Communication costs with a potential buyer, distributor, representative or consultant
- Free samples – Cost of providing samples of the products you are promoting for export
- Trade fairs, seminars and in-store promotions – External costs related to participating in a trade fair, seminar or in-store promotion
- Promotional literature and advertising – External costs of promotional material
- Overseas buyers – Cost of bringing potential buyers, who are non-residents, to Australia
- Registration and/or insurance of eligible intellectual property – Costs of granting, registering or extending rights for eligible intellectual property and costs of obtaining insurance to protect these rights
Applications for EMDG for 2012-2013 opening soon
Applications for 2012-2013 open on 1 July, 2013 and close on 2 December, 2013.
Further information about the EMDG can be found on the website of Austrade. To find out if you are eligible for the grant please contact John Bowman.
This article has been published by Colin Biggers & Paisley for information and education purposes only and is a general summary of the topic(s) presented. This article is not specific legal or financial advice. Please seek your own legal or financial advice for any questions you may have. All information contained in this article is subject to change. Colin Biggers & Paisley cannot be held responsible for any liability whatsoever, or for any loss howsoever arising from any reliance upon the contents of this article.