Austrade has announced a number of measures that will be applied to Export Market Development Grant (EMDG) applications that relate to expenses incurred in the 2019-20 and 2020-21 years.
Measure 1: Promotional expenses impacted by COVID-19
EMDG-eligible expenses related to promotional activities in 2019–20 and 2020–21 that are impacted by COVID-19 (such as trade show cancellations), will be treated as having taken place. For example, this means that if an applicant incurred expenses in relation to a trade show or similar event that was cancelled, Austrade will still allow the expense to be claimed, even though the applicant did not participate. Note that trade fairs are an example only and this treatment is not limited to trade fair expenses.
Any incurred expenses of this nature will be eligible for EMDG reimbursement in the following year (i.e. 2020-21 and 2021-22 grant years).
Measure 2: Removal of the export performance requirements
Generally, EMDG applicants that have already received two or more grants are subject to an export performance test. Under this test, Austrade calculates grant entitlement as the lesser of:
- 50 per cent of (total eligible expenses less $5,000)
- the relevant percentage of export earnings depending on how many grants you have received (these percentages vary from 5-40%)
However, the Government has waived the export performance test for those applying for a grant for expenses incurred in 2019–20.
This means that any business that has incurred eligible EMDG expenses for promotional activities in 2019–20 will be able to seek reimbursement for 50% of these expenses without the Export Performance Test applying.
This is welcome news for applicants who have received two or more grants as their grant amount for 2019-20 expenses will not be limited by their export sales performance.
The EMDG scheme is a key Australian Government financial assistance program for aspiring and current exporters. Administered by Austrade, the scheme supports a wide range of industries.
Please contact us if you would like further information about the program.