Are you considering or currently exporting your products to overseas markets? If so, you may be eligible for the Export Market Development Grant (EMDG) from the Australian government. The EMDG can reimburse your business up to 50% of eligible export expenses. Read on to find out if your business is eligible for the EMDG here.
Who Can Apply for the EMDG?
To apply for it, you have to meet several criteria. Chiefly, barring a few exceptions, your business’s annual turnover must be less than $50 million. Also, your business must have promoted your services, goods or intellectual property to an overseas market. Furthermore, you must have spent at least $15,000 on eligible export expenses. If you are a new business, you also may be eligible for other grants to assist you in the running of your business.
What Expenses Can Be Claimed?
The EMDG allows you to claim the following expenses:
- overseas representation expenses
- marketing consultant expenses
- marketing visits expenses
- free samples expenses
- trade fairs, seminars, in-store promotions expenses
- promotional literature and advertising expenses
- overseas buyers expenses
- registration and/or insurance of eligible intellectual property expenses.
Keep in mind, that some expenses despite relevant to the exporting of your goods or services overseas are not eligible for the EMDG. The grant will not cover exports that go to New Zealand or North Korea. Furthermore, expenditure that is related to product or sales development, in addition to capital expenditure are not eligible for the EMDG. Finally, expenditure that is fraudulent, unsubstantiated or illegal will not be reimbursed by this scheme.
How Do I Apply for an EMDG?
To apply for an EMDG, you will have to apply for one on the AusTrade website. You will need to provide information about your expenses, as the grant works as a reimbursement. You can have up to eight grants during the financial year, up to a maximum of $150,000 and receive up to 50% of your expenditure. Keep in mind, the rates of reimbursement will decrease for each year that you apply for the scheme. Furthermore, you will not be able to claim expenses if your overseas’ export expenses are contracted out to an agent.
Conclusion
Therefore, if you are a small to medium enterprise, the EMDG can be invaluable in assisting you to take advantage of overseas opportunities. Keep in mind, that the EMDG is business income and thus will have to be declared on your business’s taxes. Furthermore, given that it can be difficult to make a claim, or determine whether you are eligible, get in contact with a commercial lawyer who can provide you with relevant legal advice.
Need assistance to apply for an EMDG? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.