Businesses have until 30 November 2014 to apply for Export Market Development Grants (EMDG). 

The EMDG scheme provides a grant of up to $150,000 to fund up to 50% of expenses incurred on eligible export promotional activities to any overseas market (except New Zealand – not regarded as an export and North Korea and Iran due to sanctions) for a maximum of 8 years.

Overview of EMDG Eligibility

To be eligible, the business must:

• be an Australian individual, partnership, company, association, co-op, statutory corporation or trust that has carried on business in Australia during the year
• have income of not more than $50 million in the grant year
• have incurred at least $15,000 on eligible export expenses (first time applicants are entitled to combine 2 years’ worth of expenses).

Additionally, the eligible product must be either:

• a good that is made in Australia or made outside Australia but have a significant economic benefit to Australia; or
• a service, except those relating to migration, adoption, welfare, real estate in Australia, general legal, adult entertainment, or student accommodation

What can be claimed?

Expenditure relating to specific export promotional activities undertaken during the income year can be claimed.

There are nine categories of promotional activities that can be claimed:

1. Overseas representatives all reasonable costs that you pay (excluding commission) to have an overseas representative act on your behalf on a long-term basis to market/promote your product (to a maximum of $200,000).
   
2. Marketing consultants the cost of engaging an arm’s length consultant to undertake export market research or marketing activities (a maximum of $50,000 can be claimed under this category).
   
3. Marketing visits the cost of travel during the marketing visit e.g. airfares (conditional), taxi fares, departure taxes, etc. An allowance of $300 per day is claimable for overseas marketing visits to help defray accommodation, entertainment and living expenses.
   
4. Communication the costs of communication to promote your product. If you do not claim your actual communication expenses, you will receive an automatic 3% addition to the claim.
   
5. Free samples the cost of providing free samples of the product you are promoting for export.
   
6. Trade fairs, seminars, in-store promotions the cost of participating in an international trade fair, seminar, in-store promotion, international forum, private exhibition, or similar activity.
7. Promotional literature & advertising external costs of promotional material, such as brochures, videos, DVDs, advertising and website development.
8. Overseas buyers the cost of bringing potential buyers who are non-residents to Australia for an approved export promotion purpose (up to a maximum of $7,500 per buyer visit up to a maximum of $45,000 per application).
9. Registration and/or insurance of eligible intellectual property payments made to third parties, e.g. patent and trademark attorneys, for the grant, registration or extension of the period of registration of intellectual property (for countries other than Australia or New Zealand) up to a maximum value of $50,000 per application.

What to do next?

Applications for this year's round of grants opened 1 July 2014 and will close 1 December 2014, although it is in the business's interest to get the claim in as soon as possible after 1 July to maximise cash-flow.

Extensions are not granted to applicants. Therefore if believe your business may be eligible, you must act promptly.

For more information or to discuss these grants in more detail, please don’t hesitate to contact me.

Regards

Howard Badger
02 9881 3600
hbadger@moorestephens.com.au