Are you a small to medium-sized Australian business, with turnover of less than $50 million?
Does your business export goods, services or intellectual property overseas? Or is accessing an international market key to your growth ambitions?
You could be eligible for Federal Government’s Export Market Development Grant (EMDG) program.
Applications are open for the 2020 Export Market Development Grant (EMDG) program. Be it products, services or IP, this grant is the Federal Government’s cornerstone funding program for businesses who export or who are looking to elevate their international strategy and operations.
Released from Austrade, the program’s criteria has been updated to significantly benefit applicants, and given the downturn in international trade this year, we see the doors open for some applicants who have previously been precluded from the program.
That being said, applicants still have a rigorous proposal process to fulfil, with detailed requirements to meet. So as well as meeting the revised criteria, applicants should put their best foot forward by demonstrating the international growth potential of your offering, as well as the stability of your business.
Austrade has made the following changes to the 2020 grant program.
- Removal of the Export Performance Test for all year 3 – 8 applicants.
Previously, applicants up to years 3 – 8 would have their entitlement capped at a percentage of export earnings received during the period, with the percentage reducing year on year. With the export performance test removed for the 2020 grant period, this will see grants calculated on the same basis as year 1 and 2 applicants; being 50% of eligible expenditure above the first $5,000.
- Increased the initial payment ceiling from $40,000 to $100,000.
Grant funds are awarded in a two tranche payment system. The initial payment ceiling amount is awarded on successful audit or approval of an application, with the remaining funds held over until June the following year. Where the program is oversubscribed, the balance of funds is apportioned down evenly across all applicants due a second tranche payment. Where the program is not oversubscribed, applicants will receive 100% of their entitlement. Applicants due an entitlement less than $100,000 for the 2020 grant period, will receive 100% of their entitlement (upon successful audit or approval by Austrade).
- $20m funding pool injection.
In line with the 2019 budget announcement, an additional $20m will be added to the EMDG funding pool taking the balance up to $157.9m for the 2020 grant period.
For more information about the EMDG program, and how we can support you, visit our website page here.