Update on the Export Market Development Grant (EMDG), Round 4
The EMDG program has supported Australian exporters for nearly 50 years. The new round of funding will open later in the year (12 November 2024 for SME-targeted grants) and continue to provide funding to Australian SMEs looking to export products or services for the first time, or to expand existing markets.
The grants will be provided on a 1:1 matched funding basis for planned expenditure in 2025–26 and 2026–27 and allocated per the following tiers:
Tier 1, ‘Ready to Export’ - $20,000 to $30,000 per year.
Tier 2, ‘Exporting within existing markets’ - $20,000 to $50,000 per year.
Tier 3, ‘Exporting to new markets’ - $20,000 to $80,000 per year.
Representative bodies – up to $50,000 per year.
However, Round 4 will also see a raft of operational changes including a shift to a ‘first-come first-served' basis for these grant allocations. As a result, it will be important forany SMEs that are keen to secure funding to plan ahead and firm up their eligibility as soon as possible.
Provided below are further details of the main changes to be aware of for Round 4.
1. Larger and More Predictable Grants:
Larger grants of between $20,000 to $80,000 per year will be available. Representative bodies can access grant funding of up to $50,000.
Maximum grant amounts will be set for each funding tier and known in advance, helping businesses plan with greater certainty.
2. Grants Awarded on a First-Come, First-Served Basis:
Round 4 will see the program move to a first-come, first-served basis with grants offered in the order that applications are received until funding is fully allocated.
Accordingly, AusTrade recommends that businesses review eligibility criteria in advance, ensure that they have a strong application and be ready to submit as soon as applications open in November.
3. Revised Eligibility Criteria for SMEs:
Minimum turnover thresholds have been introduced for each funding tier (in addition to the $20mill maximum turnover requirement).
Other SME eligibility criteria have been refined and include:
a minimum $40,000 spend on marketing and promotional activities,
business operation under the same ABN for a minimum of 2 years, and
completion of approved export training to demonstrate readiness for Tier 1 applicants.
4. New Time Limits for Accessing Grants:
The new guidelines introduce revised time limits for each grant tier, rather than the 8-year cap. Specifically: Tier 1 for 2 years, Tier 2 for 4 years, and Tier 3 for 4 years.
5. Targeted Market Diversification:
For Tier 3 applicants looking to export to new markets, the marketing and promotional activities will need to target one of the key markets that are specified within the guidelines.
6. Stronger Compliance Measures:
Increased probity requirements are being implemented including tax and ethical/professional compliance to maintain the integrity of the program.
A stricter definition of ‘eligible export products’ will be applied to ensure that goods are both substantially Australian in origin and bring significant net benefit to Australia.
In Summary
Larger and more predictable grants will be welcome after the uncertainty and ever-reducing grant amounts that were available in prior rounds.
While the changes bring the potential for larger, more impactful grants, not every applicant will receive funding due to expected demand, limited availability, and the adoption of a first-come first-served allocation approach. The raises the prospect of eligible businesses not securing a grant if funds are fully allocated before their application is received and assessed.
Businesses and representative bodies that previously qualified may find they are no longer eligible under the new criteria given the changes to eligibility criteria (in particular, the new minimum turnover thresholds for SMEs).
We recommend reviewing the revised guidelines and preparing early to maximise your chances of securing funding when Round 4 of the EMDG program opens later in the year.
If you would like to talk more about how we can help you foster your ideas, please don’t hesitate to reach out.