EMDG - Export Market Development Grant
What is the Export Market Development Grant?
The Export Market Development Grant (EMDG) Scheme provides cash rebates to companies, joint ventures, partnerships or individuals whose gross annual turnover is under $50 million.
Grant payments are up to $150,000 for individual claimants and $250,000 for a group of companies. The rebate is 50 cents for each dollar spent in excess of $5,000 on export promotion or market research.
To qualify for a grant, a minimum of $15,000 must be spent on export promotion over a 2 year period.
Sydney Dance Company was the first to apply under the new criteria. With much patience and guidance from export consultant and lawyer Warren Cross, the Sydney Dance Company won a $60,000+ export grant rebate from Austrade to fund its current European Tour.
The Sydney Morning Herald
Who can apply for the Grant?
Any Australian company or individual involved in the export of Australian intellectual property, goods or services may apply for an EMDG grant. New guidelines have substantially increased opportunities for all types of companies, including Australian subsidiaries of foreign corporations.
Under the broadened scope of the EMDG Scheme, companies or individuals whose prior EMDG claims were unsuccessful, may now be able to qualify for further export grants.
In the past, it has been difficult for many companies in the intellectual property and services industries to build the export grant entitlement into their overseas marketing. This is because many aspects of the scheme were not clearly defined and were subject to varying interpretation by the Courts.
Under the current EMDG Scheme, a company which manufactures offshore utilising Australian intellectual property, can continue to incur eligible expenditure in promoting the sale of these products in foreign markets. Clothing and machinery are examples of goods which may be manufactured offshore, and still attract a rebate for costs incurred in promoting their overseas sales.
Marketing costs which are deducted from royalties or licence fees by a foreign licensee, may also qualify for a rebate.
Mr Chris Gilbey AO, of entertainment company Australian Record Equities says experts should be appointed to handle export grant applications. Australian Record Equities, received approximately $85,000 in grants under the Export Grants Scheme after appointing Export Incentives to handle its applications. A company Mr Gilbey formerly worked for, had limited success in applying for grants because the application was left in the hands of an in-house accountant.
The Melbourne Age
What types of expenditures qualify?
Many types of expenditure on export promotion qualify, including:
- Overseas travel
- Social media promotion
- Publicity and advertising costs
- Overseas sales offices
- Product samples
- Overseas sales agent and distributor expenses
- Communication costs
- Market research and consultants
- Trademark and patent costs
- Sponsorship and incentives for overseas buyers
- Website and promotional videos
- Overseas trade fair and promotional costs
- Brochures and marketing materials
Many software developers were missing out on export grants. The managing director of Export Incentives Pty Ltd, Mr Warren Cross, said some companies were disqualifying themselves through their licensing agreement structures.
When should claims be lodged?
Claims for the export grant can be lodged at the end of each financial year. If successful, refund cheques are generally received within two months of claim lodgement.
Export Incentives CEO and Legal Counsel Warren Cross ran a successful test case for nine feature film producers, which resulted in new guidelines being published by Austrade for the film industry.
Why use Export Incentives?
With recent changes to the export grant guidelines, there are increased complexities in the preparation and lodgement of claims.
Getting expert advice regarding the relevant legislation and the impact of recent changes to the scheme, is critical to ensuring the success of your claim.
Experience has shown that many new claimants may be unsuccessful in their EMDG applications, due to a lack of understanding of the qualifying criteria. This is particularly true in the area of intellectual property and services, where the complexities of the EMDG legislation have created a minefield for first-time claimants. This frequently leads to situations where companies either fail to obtain a grant or receive one which is significantly less than they could have received, had they sought expert advice.
One company which was initially unsuccessful in obtaining an EMDG grant was later, after using the services of Export Incentives, able to qualify for an export grant rebate of $150,000.
Export Incentives’ CEO, Warren Cross, is an intellectual property lawyer, who has more than 25 years of specialist experience in the export of intellectual property, services and know-how.
Export Incentives will assess your eligibility under current guidelines, formulate a strategy for your claim, help you prepare the appropriate support documents and act on your behalf in the lodgement and processing of your claim by Austrade.
Export Incentives has helped over 1000 exporters receive in excess of $100 million in cash grants. Companies that have benefited from Export Incentives’ expertise range from Small and Medium Exporters (SMEs) to some of Australia’s largest corporations.
A major advantage of using the services of Export Incentives is that its fees are performance-based. If your company is not successful in its claim, no fees are payable.
One client Cross helped set up his own company two years ago, said ‘by qualifying for the scheme we were able to claw back a lot of money we had spent on development’. He said he agreed with Cross that many people still did not appreciate the full extent to which the export grant scheme could be used for considerable financial advantage.
Computer World Magazine
When should Export Incentives be consulted?
Immediately! Pre-planning is the key to a successful export grant claim.
Plan now to ensure you receive your entitlement
Consulting Export Incentives as early as possible in your export process will ensure a successful claim. Phone Warren Cross now to find out how to take advantage of export grant opportunities and have the Federal Government reward you for your exporting efforts on behalf of all Australians.
Warren Cross has been appointed to the Board of the Export Council of Australia. He has acted for some of Australia’s leading SME exporters as well as being an adviser to the Commonwealth Government.
Global Trade Voice Magazine