29 July 2019
An Export Market Development Grant (EMDG) is offered to businesses who promote goods or services overseas.
The EMDG program is an incentive scheme run by the federal government, set up to help Australian businesses grow in international markets.
How does it work?
businesses may be able to access a cash rebate of approximately 50% of their eligible overseas marketing expenses. The rebate is capped at $150,000 and is subject to available funding.
When can applications be made?
Applications are open from July to November, to claim a rebate for costs incurred in the prior financial year.
If this is your first application, you can apply for costs incurred from the prior two financial years.
Who is eligible to apply?
Businesses need to meet the following criteria to be eligible to apply.
You must:
- Promote Australian goods and services overseas
- Have an annual turnover of less than $50 million
- Have incurred costs of more than $15,000 on eligible overseas marketing expenses
- Be Principal in the export transaction
- Have not previously received 8 or more EMDG grants
How much is the rebate?
Firstly you need to ensure you’ve spent above the $15,000 minimum on eligible expenses to qualify for the rebate. Once you have reached the minimum spend, you could receive a 50% rebate of eligible expenses in excess of $5,000.
Example:
If your eligible expenses are $55,000
Your rebate would be calculated as ($55,000 – $5,000) x 50% = $25,000
What is an eligible expense?
Advertising and promotional material used to market your product or service overseas:
- Online advertising/paid social media
- Promotional videos
- Flyers/brochures & promotional items
- Website costs
- Print advertising
Overseas marketing travel
Cost incurred including airfares, as well as a daily allowance of A$350 for accommodation, meals and transport.
Trade fairs
Costs associated with participating in overseas trade fairs, conferences, exhibitions, promotional events etc.
Marketing Consultant
Costs associated with with engaging independent marketing consultants for market research or development services.
Overseas Representatives
Costs associated with maintaining an overseas representative to market your business – including salaries/ professional fees, accommodation, office expenses and travel.
Sample Products
Costs associated with manufacturing free sample products, as well as overseas shipping costs to potential buyers.
Patents and Trademarks
Costs associated with registering international patents and trademarks.
Overseas Buyers Visiting Australia
Associated costs for bringing an overseas buyer to Australia, including: airfares, transport accommodation and meals.
Contact the team at Shakespeare on 08 9321 2111 if you’d like to discuss how this may apply to your individual circumstances.
Sources: Export Solutions, Austrade
General disclaimer:
Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.
Tax articles on this website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose .
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