Apply for an EMDG grant
STRAP: How to
Are you considering exporting your goods overseas? You may have heard of government funding available to assist you with this but are not sure how to go about it.
What is it?
The main source of funding available to Australian exporters is the Export Market Development Grant (EMDG). This scheme is offered through Austrade and provides a rebate of up to 50 per cent of your international marketing costs at the end of each financial year.
How do I know if I am eligible?
If you are an Australian business, turning over less than $30M per year and are exporting goods that have at least 50% Australian content then you should be eligible for EMDG. The Australian content rule generally means that you have to be manufacturing in Australia.
The other main criteria is that you have to spend at least $15,000 on eligible costs in a financial year. However, for your first claim you can combine two years together to meet this threshold.
What types of expenses are eligible?
Overseas representation, Marketing consultants, Overseas marketing visits, Free samples, Communications, Trade fairs and shows, Advertising, Promotional material and Bringing overseas buyers to Australia.
What documentation do I need to show?
Austrade will want to see documentation to prove all of these costs. You need to be able to show that you paid for the expenses within the financial year and what they were. For overseas representatives you need to show agreements and reports or e-mail correspondence to support the activities of the representative. For your overseas visits you need to show the dates you traveled, the costs incurred and what you did on a trip. For most other categories it's a matter of keeping copies of invoices and showing how they were paid.
What expenses are not eligible?
There are a few costs that you will no doubt incur that will not be able to be claimed through EMDG. Commissions, capital purchases, legal costs, salaries of Australian based staff, samples where you receive any payment, costs that are entitled to be reimbursed and trademarks are not eligible.
For travel you cannot claim accommodation, meals and entertainment costs, instead you receive a daily allowance. For 2005/06 claims the allowance is $200 per day, but for 2006/07 claims it goes up to $300 per day.
How much money can I get back?
After all the hard work you will get back 50% of your costs over the $15,000 threshold. A minimum grant of $5000 applies as soon as you spend the threshold, up to a maximum grant of $150,000. You can claim the grant for 7 years.
How do I go about applying?
EMDG is a grant that you can do on your own or use a consultant. On the Austrade website www.austrade.gov.au you can download all the required documentation needed to put together your application and find information on coaching sessions for self lodgers. You will also find on the Austrade website a list of approved EMDG consultants to assist you with this if it all seems too hard. Consultants work on a success fee basis so you don't pay them anything until you receive your grant money.
You must lodge your grant between the 1st July and the 30th November after the end of each financial year.
Happy exporting!
Gemma Hansen
EMDG Consultant, Export Solutions www.exportsolutions.com.au
Phone 03 9529 4888, Mobile 0414 616 696 or
e-mail gemma@exportsolutions.com.au