Heads up exporters! After a delay due to the change in federal government, the Minister for Trade and Tourism has agreed to urgently opening Round Two of the Export Market Development Grant (EMDG) program. Application dates have finally been confirmed for FY23 and will open for 6 weeks from 6 July to 17 August 2022. Open to growing and aspiring export businesses, each year the EMDG helps between 3,000 and 5,300 Australian small and medium enterprises (SMEs) start or expand their business globally.
How Much is the EMDG Program Worth?
The total funding for the EMDG program is $157.9 million per year, provided to eligible entities with a turnover of less than $20 million. Access to grants is capped at $770,000 per applicant, broken up into 3 tiers over an 8-year period, with each tier offering a different level of support for SMEs.
This is the second year of the new forecast-based program, and Austrade has outlined the expected grant amounts per tier, based on the prior year's demand:
- Tier 1 – expected amount is $15,000 per FY (capped at $40,000 per FY for up to 2 years)
- Tier 2 – expected amount is $23,000 per FY (capped at $80,000 per FY for up to 3 years)
- Tier 3 – expected amount is $35,000 per FY (capped at $150,000 per FY for up to 3 years)
- Representative bodies – expect up to $90,000 per FY (capped at $150,000 per FY up to 3 years)
Austrade has assessed 99% of applications received for the last year of the EMDG reimbursement scheme and has advised the payout factor. This year it will be 37.3 cents in the dollar with second tranche payments to those eligible being made in the next a couple of weeks. Final grant amounts for FY23 will be determined based on the demand for funding after all EMDG applications are submitted.
When Are EMDG Payments Made and is My Business Eligible for the EMDG Program?
EMDG payments are made annually, but to get your hands on one, there are a few conditions you’ll need to satisfy. Payments are subject to a satisfactory milestone report, and your business needs to at least match the dollar value of the grant monies you get.
Also, if you have an active EMDG agreement that extends beyond FY22, nice work! However, this means you won’t be able to apply for round 2.
Navigating the World of Government Grants and Incentives
Every year our experienced Grants and Incentives team helps to deliver millions of dollars to growing businesses. If you want to explore the EMDG program and other grant opportunities available to your business, our experts can guide you through the whole process, saving you from sinking into the abyss of eligibility, applications and compliance. Reach out to our grants and incentives consultants to find out more!