Advertisement

EMDG Round Four: The key changes and new guidelines

The Australian Government’s Export Market Development Grants (EMDG) program is reopening for Round Four in November 2024 with significant updates.

This flagship program, which aids Australian SMEs expanding into foreign markets, will now feature new eligibility criteria, revised grant amounts, and a first-come, first-served application process.

Grants of up to $80,000 per year will be available, with over $200 million allocated across two financial years. Key changes include updated minimum turnover requirements and a focus on strategic key markets.

Round four introduces updated grant guidelines and eligibility criteria. There will be different opening dates for representative bodies and each tier.

Here’s what you need to know:

  • Representative bodies, applications open AEDT 10am on 6 November
  • Tier 1 – ready to export, applications open AEDT 10am on 12 November
  • Tier 2 – exporting within existing markets, applications open AEDT 10am on 12 November
  • Tier 3 – exporting to new key markets, applications open AEDT 10am on 12 November.

Applications will close when the allocated funding for each tier is fully distributed. Austrade will provide regular updates on the portal and their website regarding the application status.

BDO Director, R&D and Grants, Melissa Fardone said all applicants, including those who have received a grant before, should understand the new rules and eligibility criteria.

“It is important to apply early to secure a grant as applications for all tiers will close once funding is fully allocated,” Fardone said.

“Recipients must keep payment records of all eligible expenditure and be able to explain how the costs relate to the conditions of your grant agreement. Eligible applicants will be required to provide a milestone report before Austrade makes a milestone payment. The report must be submitted in-line with the timeframes detailed in the grant agreement.

“BDO’s team of R&D and Government Grant specialists can help recipients understand the new changes and assess which expenses are eligible under the program. If you have any questions about the new EMDG Round Four changes or any other government grants, please contact us.”

Grant agreements duration and funding

Successful applicants will receive grant agreements for up to two financial years, covering planned expenditure from 2025–26 to 2026–27.

For this grant opportunity (Round Four), up to $104.5 million will be available in 2025-26 and up to $104.5 million in 2026-27 for grant allocations.

EMDG is changing for Round Four

Following extensive reviews, analysis and stakeholder consultation, changes have been made to EMDG and the application process from Round Four.

The key changes include:

  • Grant Availability: Approximately 1,900 grants will be offered in Round Four across all tiers.
  • Grant Amounts: Maximum grant amounts will be set per grant tier and detailed in the Grant Guidelines. Grant amounts will be disclosed in advance.
  • Application Assessment: Grants will be awarded on a first-come, first-served basis. The grant round will close once available funding is exhausted.

Updated eligibility criteria

InDaily in your inbox. The best local news every workday at lunch time.
By signing up, you agree to our User Agreement andPrivacy Policy & Cookie Statement. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

New changes have been made to eligibility for SMEs including:

Minimum turnover requirements:

  • Tier 1: More than $100,000 per year
  • Tier 2: More than $500,000 per year
  • Tier 3: More than $1 million per year.

Additionally:

  • SMEs must show the capacity to spend at least $20,000 annually on marketing and promotional activities, which must be their own funds and not covered by the grant
  • Businesses must have been operating for a minimum of two years with the same Australian Business Number (ABN)
  • Tier 1 applicants need to demonstrate export readiness by completing approved export training or passing the Export Readiness Test
  • Tier 3 grants now include specific key markets to encourage experienced exporters to explore new opportunities and diversify their markets.

Which EMDG grants are available in Round Four?

 EMDG grants are available in three tiers, including Representative Bodies Grants. They are designed to provide different levels of support as you grow your export markets throughout the different stages of your export journey.

Grants for small and medium enterprises (SMEs)

The three tiers of EMDG grants for small and medium enterprises (SMEs) are:

  • Tier 1 up to $30,000 per financial year – Ready to export: For eligible SMEs who have not exported eligible products before but are ready to begin exporting in the grant year. For this grant in Round Four, you must prove your business is export ready.
  • Tier 2 up to $50,000 per financial year – Exporting and expanding: For eligible businesses with plans to expand their existing exporting.
  • Tier 3 up to $80,000 per financial year – Exporting, expanding and strategic shift: For eligible exporters who plan to make a strategic shift in their exporting business. Importantly, for this grant opportunity in Round 4, the export promotional activity must focus on key markets.

Grants for Representative Bodies

For Representative Bodies (organisations or associations promoting the interests of a group of Australian businesses), you may be eligible for a grant in Round 4 if you do one or both of the following:

  • Offer export training to SME members in your sector or industry
  • Undertake new export promotional activities on behalf of your SME members.
Local News Matters
Advertisement
Copyright © 2024 InDaily.
All rights reserved.