Export Market Development Grant – what’s new for FY2026 and FY2027?

With exactly 5 weeks to go until applications open for the next round of the Export Market Development Grant (“EMDG”) program, now is the time to start assessing your business’ potential eligibility for grant funding.  Austrade has recently changed the eligibility criteria of the EMDG program, meaning that businesses that had previously been entitled to funding may no longer qualify.

 

What are the key points?

  • Applications open at 10am AEDT on 12 November 2024;
  • The assessment and offering of grants will occur in the order that Austrade receives applications. The program will close once the available funding is allocated to eligible applicants. This change means that not all applicants will necessarily receive funding;
  • Applications can be for a maximum of two financial years; FY2026 and FY2027;
  • The government has earmarked up to $104,500,000 in grant funding per financial year (i.e. $209,000,000 equally split across the two financial years);
  • The business must have been operating under the same ABN for at least 2 years;
  • The business must have the capacity to spend at least $20,000 per financial year;
  • There must be a high-quality plan to market that is specific to each business;
  • The business must be tax compliant and fit to receive a grant; and
  • Consistent with previous EMDG rounds, businesses need to apply for a particular ‘tier’ (see below).

 

Tier 1 – ready to export:

  • The business has not exported before;
  • Have an FY2024 annual turnover of more than $100,000 but less than $20,000,000;
  • A business can qualify as Tier 1 for a maximum of two years; and
  • Grants of between $20,000 and $30,000 per financial year.

 

Tier 2 – exporting within existing markets:

  • Already exporting;
  • Seeking to expand its marketing and promotional activities within its existing export markets;
  • Have an FY2024 annual turnover of more than $500,000 but less than $20,000,000;
  • A business can qualify as Tier 2 for a maximum of four years; and
  • Grants of between $20,000 and $50,000 per financial year.

 

Tier 3 – exporting to new key markets:

  • Already exporting;
  • Seeking to diversify its marketing and promotional activities into new key markets (i.e. any of 27 prescribed countries);
  • Have an FY2024 annual turnover of more than $1,000,000 but less than $20,000,000;
  • A business can qualify as Tier 3 for a maximum of four years; and
  • Grants of between $20,000 and $80,000 per financial year.

 

Given the ‘first come, first served’ nature of this new EMDG program it is highly recommended that any business that is desirous of receiving grant funding ensures that it has everything ready to submit by 10am AEDT on 12 November 2024.

 

If you would like to know more about this or any other government incentives in Australia, please get in touch to arrange a discussion.

 

By Dave Corbin, Managing Director of Catalyst Solutions Australia.

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