Have you heard that the EMDG program is changing... Again? The guidelines for Round 4 have just been released, so here is a summary of how EMDG can help Aussie businesses grow.
For many years, Australian businesses that export products or services overseas have benefited from the Export Market Development Grant (EMDG) . This Federal Government cash rebate is not only for businesses with established export lines but also for growing exporters needing help promoting their products to kick-start their export journey.
The EMDG program has recently undergone yet another extensive review, resulting in significant changes. Let’s break down how the revised program will support Aussie businesses in tackling new export markets through an updated application process for round 4, opening in November 2024.
Key Changes in Round 4 of the EMDG Program
Round 4 of the EMDG program, which will provide grants for the FY26 and FY27 years, includes several new features and updates:
Larger Grant Amounts and Greater Clarity
- Maximum grant amounts are now set at meaningful levels per grant tier and are known in advance, providing greater clarity
- Grant sizes will be greater than in previous years, driving better outcomes for businesses.
- Applications are assessed in the order they are received until funding is fully allocated.
Enhanced Eligibility Criteria for SMEs
Minimum annual business turnover requirements now apply per grant tier:
- Tier 1: More than $100,000 per year
- Tier 2: More than $500,000 per year
- Tier 3: More than $1 million per year.
Businesses must spend at least $20,000 of their own money annually on overseas marketing and promotional activities, exclusive of the grant amount. Applicants must have been in business for a minimum of 2 years under the same Australian Business Number (ABN). Tier 1 applicants also need to demonstrate their readiness to export by completing approved export training and/or tests.
Support for Export Diversification
- Grants targeting specific markets for different grant tiers, including higher grants for experienced exporters to target key markets.
Better Support for Representative Bodies
- Representative bodies can undertake export training and projects that support their SME members, provided they outline high-quality plans detailing how their activities will benefit SME members.
Enhanced Compliance Measures
- Increased probity requirements and amendments to ensure eligible export products and services are of substantially Australian origin and bring significant net benefits to Australia.
EMDG Past Rounds: Relevant Dates and Status
Austrade is currently managing four EMDG grant rounds. Rounds 1 (2021), 2 (2022), and 3 (2023) are now closed. Round 4 will open in November 2024. Successful applicants should refer to their grant agreements for their approved funding amounts and milestone reporting due dates, as these are specific to each round and recipient. Over 9,600 businesses across the first three rounds will continue to receive grant payments across the 2024/25 financial year, provided their grant obligations are met.
Round 4 EMDG Opening Dates
Round 4 is the next round to open for applications. Here’s what you need to know about the opening dates:
- Representative bodies: Applications open at 10am AEDT on 6 November 2024
- Tier 1 – Ready to export: Applications open at 10am AEDT on 12 November 2024
- Tier 2 – Exporting within existing markets: Applications open at 10am AEDT on 12 November 2024
- Tier 3 – Exporting to new key markets: Applications open at 10am AEDT on 12 November 2024
Approximately 1,900 grants will be offered in Round Four across all tiers.
What the Changes Mean for Your Business
The new changes mean bigger grants but with a highly competitive application process due to limited funding. Unlike in the past, applications will be assessed in the order they are received until all available grant money for each tier has been allocated. This means that not all eligible applicants will receive a grant. To maximise your chances of success, it is essential that your application is lodged as soon as applications open.
If you think your business qualifies and would like assistance with preparing your application, please get in touch with our Grants and Incentives team via the form below for a free consultation.
