In a welcome announcement from Austrade today, the Export Market Development Grants (EMDG) program will receive a $49.8 million boost to help exporters and relieve some of the pressure being placed on them as result of COVID-19 crisis.
For applications that were lodged in the 2019-20 year (i.e. applications lodged after 1 July 2019 in relation to expenses incurred in 2018-19 or for first time claimants 2018-19 and 2017-18) the payout factor for the second tranche will be 100%.
What does this mean?
EMDG payments are generally made in two tranches:
- Tranche 1: an initial payment of grant entitlements up to an initial payment ceiling amount of $40,000
- Tranche 2: a second-tranche payment of grant entitlements above the initial payment ceiling amount (subject to available funds)
The value of the second-tranche payment is usually based on the amount of a provisional grant entitlement above the initial payment ceiling amount and a payout factor that Austrade determines based on the amount of funding remaining in the EMDG budget once initial payments have been made.
However, for the 2019-20 grant period the tranche 2 payout factor will be 100% which means that all claimants will receive the full grant amount they are entitled to.
When will payments be received?
The second tranche payment, which is usually made at the end of the financial year, has been brought forward to 31 March 2020. This means that for claimants with a grant entitlement above the initial payment ceiling amount of $40,000, they will receive the remaining portion of their grant in the week beginning Monday 6 April.
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.