In some good news for Australian exporters, Federal Trade Minister Simon Birmingham has announced changes to the Export Market Development Scheme (EMDG) that will streamline the application process for export grants.
As part of a review, EMDG eligibility will now be limited to companies with turnover of less than $20 million, down from the current $50 million cap. An entitlement-based payment and simplified funding agreement will be adopted, with firms informed of the value of any payment before they incur expenditure.
“By shifting away from a reimbursement model to a grants scheme, eligible exporters will now receive funding closer to when they incur costs, giving more confidence that EMDG funding will genuinely boost their international marketing and promotional activities” stated Minister Birmingham.
This is in addition to the Government topping up the popular scheme by $60 million earlier in the year.
“COVID-19 has presented new hurdles for Australian exporters including the disruption to supply chains and loss of markets, and it is more important than ever that they have the support mechanisms in place to help them reach their export potential”, said Minister Birmingham.
“Maximising support to Australian businesses as they look to go global or expand their overseas footprint will be vital to continue growing the number of Australian exporters and the total value of Australian exports into the future, which will help create more jobs.”
EMDGs are used extensively by ACBC members, such as South Australian wine exporter Nova Vita wines. Nova Vita’s marketing manager Bill Yuan remarked “we have used EMDGs for a couple of years. We travel a lot internationally, the EMDG is quite helpful. It covers most of our expenses, such as flights, accommodation, printing fees, exhibition fees, and even my salary as I’m manager for international sales and marketing.”
For more information about EMDGs, visit Austrade