The export market development grants (EMDG) scheme is an Australian government financial assistance program for aspiring and current exporters. The EMDG scheme:
- encourages small and medium sized Australian businesses to develop export markets
- reimburses up to 50% of eligible export promotion expenses above $5,000 provided that the total expenses are at least $15,000, and
- provides up to eight grants to each eligible applicant.
The changes give effect to several key recommendations resulting from the 2015 review of the EMDG scheme, and also make minor policy and technical amendments to improve the scheme’s operation. The operative changes to the scheme are detailed below.
Communications no longer eligible expenditure
Since the commencement of the scheme, the cost of communications has reduced with the increased use of information technology. An automatic 3% addition to a claim (to cover communication costs) is no longer permitted, as this no longer reflects the actual cost of communication.
Free sample limit of $15,000
A limit of $15,000 on the free sample expenditure category now applies. Grandfathered rules will apply to first time claimers in 2016/17 (as a two-year expenditure period is allowed).
Promotional literature in electronic form specifically included
Expenditure on promotional literature that is in electronic form (including website expenses) is now specifically included. This was previously allowed, but was not necessarily understood in practice.
Changes to travel claims
The reimbursement of in-country travel (ground transport) is no longer allowed (air fares are still allowed) and the amount of the daily allowance for overseas visits has been increased from $300 to $350.
Timing of changes
Mostly related to expenditure categories, the changes affect expenses incurred from 1 July 2016 onwards and apply to businesses intending to lodge an EMDG claim from 1 July 2017. For expenditure incurred before 1 July 2016, and for which an EMDG claim will be lodged between 1 July 2016 and 30 November 2016, the current rules apply.
