The Export Market Development Grant (‘EMDG’) has now opened for applications for the 2022 financial year. This grant is aimed at encouraging Australian businesses to invest in the promotion of their products and services in international markets. The EMDG has fundamentally changed relative to prior years, introducing a new format that requires an upfront application (rather than claiming expenditure retrospectively).
Some other major changes include:
- Providing greater grant certainty through grant agreements spanning 2 to 3 years with specified amounts that may be received.
- Introducing three tiers of available grants. The tiers are based on the different stages of a business’s export journey. These tiers are non-linear, and claimants may access whatever tier is most appropriate for their business at any point in time. The three tiers are:
- Tier 1: for eligible SMEs who are ready to start exporting. Grants of up to $40,000 per financial year for up to 2 years.
- Tier 2: for eligible exporters who are already exporting and are looking to expand promotional activities. Grants of up to $80,000 per financial year for up to 3 years.
- Tier 3: for eligible exporters who are already exporting and are looking to expand promotional activities and make a strategic shift in their marketing. Grants of up to $150,000 per financial year for up to 3 years.
- Removing the minimum expenditure threshold of $15,000, as well as the caps on certain types of expenses.
As the new scheme is moving from a reimbursement-based approach to an upfront grants-based approach, both the FY2021 and FY2022 applications will be running at the same time.
Applications under the new EMDG program (i.e. for FY2022 and beyond) can be made from 16 August 2021. Applications close 30 November 2021 at 5:00pm.
Applications under the current EMDG program (i.e. for FY2021) opened on 1 July 2021 and will close on 30 November 2021.
If you would like to discuss how your business could benefit from the current or the new EMDG program (or both!), please get in touch with us to arrange a tailored discussion.