Export Incentives specialises in export grant applications, for exporters of intellectual property, services and know how
 We prepare, lodge and process through Austrade your export grant application, where a cheque from Austrade may be received
 
 
     
   
 

GENERAL OUTLINE
OF THE EXPORT MARKET DEVELOPMENT
GRANT SCHEME



To be eligible to apply for an Export Grant you;

  • Must hold an ABN
  • Have a gross taxable turnover of less than $50 million
  • Have incurred at least $10,000 of expenditure over a 2 year period
  • Have current financial statements that demonstrate your business is viable
  • Have a product or service of Australian origin

How Much Is The Export Grant Rebate

  • 50% of the amounts incurred in excess of $10,000
  • Once you have spent $10,000, the minimum grant of $5,000 becomes payable
  • Austrade pay a maximum grant of $200,000. Because a fixed amount is allocated each year for grant payments ($200 million), the payment system is complicated. An initial payment (currently $40,000) is made when your application is processed. A further payment of any balance due is made at the end of the processing period, depending upon available funds.

What Expenditure Qualifies

The rebate applies to export promotion and export market research (such as travel or engaging a consultant). The rebate does not apply to product development, product delivery, cost of sale expenses or administration.

CATEGORIES OF PROMOTIONAL EXPENDITURE WHICH QUALIFY

Overseas Representatives

All the costs of running your own overseas representative office or paying an overseas representative qualify, other than capital expenditure. A minimum 12 months representative contract is necessary.

Salaries, rent, vehicle hire, office expenses all qualify up to a maximum of $200,000 per year.

If the overseas representative is independent to you i.e not a related company an additional $50,000 is able to be claimed (i.e. to a total of $250,000).

Marketing Consultant

Independent arms length marketing consultants qualify up to $50,000 per application. Consultants may be based in either Australia or overseas. Their activities may include market research, advice on markets and pricing strategies, as well as direct promotion.

Overseas Travel

For overseas travel, you are allowed airfares and all other transport costs i.e. taxis hire cars, together with a daily allowance of $300 per day, per person up to 21 days per trip. First class airfares are discounted by 35%, otherwise all transport costs qualifies. The daily allowance of $300 is in lieu of actual costs incurred for accommodation, meals and general living expenses. If any part of any trip is not for export promotion (i.e. a holiday), that part of the trip will not be eligible for the rebate.

Communication Costs (phone, fax & email)

Most applicants elect the automatic 3% allowance e.g. if the total of your other claimed expenses is $100,000, then 3% i.e. $3,000 will be automatically allowed for communication costs. Alternatively, actual communication costs which relate solely to export promotion, can be claimed.

Product Samples

Product samples (at cost price to you) can be claimed. The samples must be given away without charge to potential overseas buyers.

Trade Fairs, Seminars & Promotional Events

All costs paid by you to third parties to participate in a trade fair or to stage a promotional event or private exhibition qualify. Any internal costs (such as staff time) do not qualify.

Publicity & Advertising

Costs paid to external contractors to create marketing brochures, websites, electronic press kits, paid advertising or any other form of promotion qualify.

Bringing an Overseas Buyer to Australia

Costs incurred in bringing an overseas buyer to Australia are eligible (excluding entertainment) up to;

  • $7,500 per buyer per visit
  • a maximum of $45,000 per application

Patent Trademark & Copyright Registration Costs

Costs paid to protect intellectual property in overseas markets may be eligible, if it can be established the costs were incurred for export promotion and not solely for intellectual property protection. Insurance against costs to be incurred protecting intellectual property in foreign market may also be eligible. Please consult us regarding these expenses.

Goods Manufactured Offshore

If you have undertaken design and research in Australia but manufacture offshore, you may still qualify for export grant rebates. To do so, your ‘mark up’ on goods sold, must exceed 75%. If the good comes into its final form in Australia, then the required Australian content is 50%.

Related Companies

If overseas marketing is undertaken by a related company in your group, this may be eligible. Please discuss this with us.

Exclusions from Export Grant Eligibility

  • Any expenditure not paid (on a cash basis) by 30 June
  • Commissions
  • Capital expenditure
  • Salaries (except for overseas representatives and product samples)
  • GST
  • Any marketing to New Zealand
  • Any cash payments in excess of $10,000
  • Any expenditure or export earnings which are not in your financial accounts and/or tax returns

Additional Points

  • Any marketing costs initially incurred by a third party licensee (such as a distributor) which are charged back against your revenue/royalties, can be claimed upon recoupment.
  • Where a promotional event/trade fair is held in Australia (such as Australian Fashion Week), if overseas buyers attend the event, part of your participation costs may be eligible.
  • If you create marketing items which are used locally and internationally (such as a website, business cards, electronic press kit etc), the proportion which relates to overseas marketing can be claimed.

WHAT WE NEED TO PREPARE YOUR EXPORT GRANT APPLICATION

To enable us to prepare your Export Grant Application for submission to Austrade, we need to identify the date and amount of each payment you are claiming for the rebate. We will also need;

  • Your most recent financial statements (Profit and Loss & Balance Sheet)
  • A company introduction/biography
  • A spreadsheet detailing expenses you wish to claim, if possible broken into the categories below.

In addition we will need;

Schedule 1A – Overseas Representation

  • We need the written agreement with the overseas representative which must be for a minimum term of 1 year.
  • Sample reports or emails showing marketing activities undertaken by the representative.
  • A spreadsheet outlining the expenses you wish to claim
  • Copies of invoices. Please attach to the invoice a copy of the bank statement or credit card showing payment of the expense.

Schedule 1B – Marketing Consultants

  • An agreement or letter of engagement with the marketing consultant
  • A report or outline of their marketing activities
  • A spreadsheet outlining the expenses you wish to claim
  • Copies of the invoices for all expenditure. Please attach a copy of the bank statement or credit card showing payment of the expense

Schedule 2 – Marketing visits

  • Complete our pro-forma trip report for each trip undertaken
  • Copies of invoices for the airfare and other travel expenses. An expense report may suffice for small costs such as taxis
  • Attach a copy of the bank statement or credit card showing payment of the expenditure
  • Evidence of dates travelled such as frequent flyers, boarding passes or travel agents itinerary

Schedule 3 – Communications

  • No evidence is necessary if you elect the automatic 3% allowance.
  • If you wish to claim actuals, we need invoices and the bank statement showing payment

Schedule 4 – Free Samples

  • A spreadsheet detailing samples supplied
  • A list of the potential overseas buyers the samples were sent to
  • A spreadsheet costing of the samples

Schedule 5 – Trade Fairs & Promotional Events

  • A spreadsheet outlining the expenses you wish to claim
  • Copies of the invoices for all expenditure. Please attach the bank statement or credit card showing payment of the expense
  • Ideally, photos of your stand at the trade fair or any other evidence of your attendance such as a trade fair booklet showing you as an attendee.

Schedule 6 – Promotional Literature & Advertising

  • A spreadsheet outlining the expenses you wish to claim
  • Copies of the invoices for all expenditure. Please attach the bank statement or credit card showing payment of the expense
  • Samples of larger advertising/promotional items such as trade advertisements, brochures etc.
  • For your website, Austrade will request details of the “hits” on your site on a per country basis, to establish overseas content.

Schedule 7 – Overseas Buyers

  • Details of costs incurred for each buyer
  • Copy of invoices for all expenditure. Please attach the bank statement or credit card showing payment

Schedule 8 – Registration and/or Insurance of Eligible Intellectual Property

  • A spreadsheet outlining expenses you wish to claim
  • Copies of invoices for all expenditure. Please attach the bank statement or credit card statement showing payment of the expense.
  • A written export development strategy in respect to the overseas markets where the costs have been incurred. This strategy document should show registration costs were incurred to develop export markets and not solely to protect your intellectual property rights.

Schedule 9 – Export Earnings

  • A spreadsheet detailing export earnings received during the relevant grant period (financial) year.
  • Copies of larger invoices and bank statements showing receipt of export earnings within the grant period.

Schedule 10 – Related Companies

  • A spreadsheet detailing related companies.