What is EMDG?
The Export Market Development Grants (EMDG) scheme is an incentive program from the Australian government. It’s designed to encourage small and medium Australian businesses to increase their marketing and promotions overseas.
How much do you get back?
You get up to 50% of your promotional expenses above $5000 up to a maximum of $150,000 in a financial year (or two financial years the 1st time you claim).
You must have spent more than $15,000 in eligible expenses to claim.
Example:
It’s your 1st year claiming the EMDG and you spent $10,000 last year and $50,000 this year in marketing and promotions to the United States.
You can put in $60,000 worth of expenses into the scheme and receive 50% of the amount over $5000, or $55,000.
So 50% of $55,000, or $27,500 is reimbursed to you!
How do I qualify?
To be able to claim your grant, you must fulfil three things:
- Be an eligible business genuinely carrying on business in Australia, with annual income of not more than $50 million;
- Be seeking to export an eligible product (goods, services, intellectual property or know-how);
- Have incurred expenses on an eligible promotional activity (eg overseas travel for the purpose of marketing, overseas representation or sales staff, marketing consultants, trade fairs or expos, communications including overseas phone calls), free samples, promotional literature and advertising (including web development and online marketing), visits to Australia by overseas buyers, and registration and insurance of intellectual property.
What do you mean by “eligible product”?
An eligible product can be one of 4 things
1. Goods;
2. Services (including consultancy services or Saas products);
3. Intellectual property;
4. Know-how.
Examples are:
- a tourism service (including accommodation, passenger transport, or tours).
- a conference or event held in Australia.
- Saas products (NB these may also be eligible for the R&D grant).
What next?
I’d love to help find out how much you can claim and it’s very important that you have the appropriate documentation to ensure your success.
If you are selling anything to an overseas market or looking to, contact us today to see if it’s the right time to claim.
