The EMDG program supports eligible Australian businesses to undertake additional marketing and promotional activities and training. This helps them commence, expand and diversify their exporting into foreign markets.
EMDG provides short-term assistance to businesses as they start and grow in their exporter journey. We encourage businesses to apply at different points when the grants will benefit them most.
From Round 4 onwards, EMDG has changed following extensive reviews, analysis and stakeholder consultation.
Challenges with the EMDG program
In 2021-22, the EMDG program shifted from a reimbursement scheme to an eligibility-based, demand-driven program.
The shift created higher demand and lower grant amounts. This was because all eligible applicants received a grant and there was significant interest in the program. For further details, see EMDG operational review.
To address this, we explored changes to the program, consulting exporters and others to get their feedback. The changes are a result of this analysis, review and consultation process. Read more about the process at EMDG program strategic refocus – consultation summary.
Benefits of the changes
Changes to EMDG are needed to address the challenges with the program. The changes will:
- maximise the benefits of EMDG grants to businesses
- deliver more impactful grants
- support trade diversification activities by exporters.
Key changes
Larger grant amounts and greater clarity
Change
- Maximum grant amounts are set at a meaningful level per grant tier and known in advance.
- Applications will be assessed and grants will be offered in the order we receive applications until funding is fully allocated.
- A grant round will close once the available funding is allocated to eligible applicants. This change, which is consistent with other commonwealth grant programs, means that not all applicants will receive funding.
- Funding allocations can be specified for the different tiers, including representative bodies.
Benefits
- Businesses can plan marketing and promotional activities with greater clarity. For the first time, they will know what they will receive if successful.
- They may receive some of their grant at the start of the grant year, before they begin their grant activity.
- Grant sizes will increase, driving better outcomes for businesses.
Improved eligibility criteria for small and medium sized enterprises (SMEs)
Change
- Eligibility criteria better reflect characteristics of successful exporters.
- Minimum annual business turnover requirements per grant tier.
- Capacity to spend at least $20,000 on marketing and promotional activities. This must be exclusive of the grant amount. It must be the applicant’s own money.
- Minimum 2 years in business with the same Australian Bussiness Number (ABN).
- Tier 1 applicants need to show they are ready to export and demonstrate they have the required skills. They can do this by completing approved export training and/or our test.
- Businesses can continue to receive EMDG grants for 8 financial years. There are new limits for how many years businesses can have specific tier grants. These limits are:
- Tier 1 for 2 years
- Tier 2 for 4 years
- Tier 3 for 4 years.
- Calculations towards the 8 financial years will now be based on:
- entering into a grant agreement (whether or not you spend each year) or
- the number of grants paid in the previous reimbursement scheme.
Benefits
- New eligibility requirements designed to help exporters who are most likely to succeed.
- Tier 1 businesses will be ready to export and can best use the grant.
- Grants will support businesses across different stages of their export journey. This is to help them get them into, and become, more confident with exporting.
Better support for businesses to diversify into new markets
Change
Potential to provide grants that target specific markets for different grant tiers. For Round 4, key markets are specified for Tier 3.
Benefits
Helps encourage more experienced exporters to target key markets and take on broader opportunities for market diversification.
Representative bodies can better support their SME members in need
Change
- Promotional and training activities must have a clear link to export and must support members that are SMEs. For EMDG, this is defined as businesses with less than $20 million turnover.
- Representative bodies must be undertaking export training and/or new marketing and promotional projects that support their members.
- Representative bodies must outline in a high-quality plan to market how their proposed activities are new and how they will benefit SME members.
- For representative bodies proposing to provide export training, they must now provide a plan for proposed training activities. This will outline:
- training outcomes
- how the representative body will deliver the training
- how the training will benefit SME members.
Benefits
- More deliberate planning, transparency and accountability for representative bodies’ use of funds. This includes the requirement to consider new opportunities and demonstrate how their proposed activities will be useful.
- New marketing, promotional and training activities will benefit more SME member businesses in the industry.
Improved compliance measures
Change
- Increased probity requirements including:
- tax compliance
- conducting business in a professional and ethical way that would not risk Australia’s trade reputation.
- Amendments to the definition of ‘eligible export product’ to ensure that goods are both:
- of substantially Australian origin
- bring significant net benefit to Australia.
Benefits
Protects the integrity of the program and government funding.
What the changes mean
New changes mean bigger grants, but not every applicant will receive a grant.
EMDG funding is limited. We expect to receive a large volume of applications.
Due to the program changes:
- Some businesses and representative bodies who previously received EMDG grants will no longer be eligible.
- Some applicants who are eligible and apply will not receive grants. This is because funds may be fully allocated before we receive their application or before we assess it. This could be the outcome even if they submitted before applications closed.
Alternative support
Businesses building their capacity and capability to export can continue to access export trade advice from Austrade. This includes using our Go Global Toolkit.
Industry bodies may also be able to support small and medium businesses to prepare for exporting.
Review documents
These documents summarise the reviews, analyses and stakeholder consultations that inform the program changes.
For more EMDG program evaluations, see Reviews, research, data and analysis.