A smarter EMDG: what the review means for Australian exporters

The message is a reassuring one for exporters: EMDG remains a highly valued program that helps Australian small and medium businesses grow, innovate and diversify into international markets, and the review proposes a set of practical improvements aimed at making it work better for applicants and better align with government trade priorities.

For current and prospective EMDG applicants, the review offers encouraging signs that stakeholder feedback has been heard, and that future rounds may be simpler, fairer and more predictable to navigate.

EMDG is working, and can work even better

The review confirms what many exporters have told us for years. EMDG plays an important role in supporting Australian SMEs to enter and expand into overseas markets, giving businesses the confidence to undertaken marketing and promotional activities they might not otherwise pursue, while also encouraging stronger planning, ambition and innovation. 

Rather than a whole overhaul, the report appears to have taken a measured approach, focusing on targeted changes that address the most significant pain points from Round 4, without adding unnecessary burden on business. 

The recommendations that matter most for business

The review makes 29 recommendations in total. The ones most likely to shape the applicant experience are:

• A shift from first-in, first-served to a merit-based assessment model. Funding would be allocated based on the alignment of an application to the program’s objectives and quality of the proposed export plan, rather than speed of submission.
• A simpler two-tier program structure. One tier for export-ready businesses entering their first international markets, and a second, more comprehensive tier for established exporters expanding into new and existing markets.
• A return to annual grant rounds with annual grant agreements to better align with business planning cycles and give businesses more frequent access to the program. 
• A streamlined assessment and review process with simpler documentation requirements, including a rethink of the detailed plan to market.  
• A review of milestone reporting, including removing the 15 June deadline so grantees have a full 12 months to plan and capture of eligible expenditure.
• Clearer, more frequent communications, including on application status, guidance on eligible expenditure and he broader suite of government export support services. A fairer, more transparent internal review and appeals process. 

The full report and recommendations are available here.

A positive outlook for future rounds

Importantly, the review recognises the value of the EMDG program and proposes refinements designed to improve applicant experience while preserving the core benefits of the program. It also encourages stronger connections between EMDG and complementary government support including advisory services, export finance through Export Finance Australia, in-market support and business innovation programs. For exporters, this means the potential for a more joined-up, whole-of-government approach that goes beyond a single grant.

What happens next

The Australian Government is now considering the recommendations and will decide which changes are implemented for future rounds. In the meantime, the existing EMDG framework remains in place.  

For businesses currently exporting, or considering international expansion, the review provides a positive signal that the EMDG program will continue to be a cornerstone of Australia's export support landscape, with a sharper focus on accessibility, transparency and outcomes for applicants. 

It is also worth remembering that following the last independent review in 2020, significant reforms were implemented so there is good reason to be optimistic that this review may drive further meaningful improvements. Importantly, the report notes that its recommendations have been designed to avoid placing unnecessary additional burden on stakeholders, which points to a smoother transition for applicants going forward.

How Grant Thornton can help

Our EMDG specialists support businesses at every stage of the application and grant management process, from eligibility assessments and application preparation through to milestone reporting and compliance.

If you would like to discuss how the proposed changes may affect your business or explore whether EMDG could support your international growth plans, please get in touch with our team.

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^{Article contributed to by Alana Bayliss - Senior Manager - R&D Tax (Innovation Incentives)}