Mitchell & Co – April 2025 Newsletter

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April EMDG Newsletter

In recent months, EMDG has been just plodding along.

This month there is plethora, yes that’s a fancy word to use to say there now a lot to talk about.

EMDG and the 2025 Budget

The budget did not contain any real news for exporters.

There was no injection of funds to fix the funding crisis/shortfall for November 12 Round 4 lodgement process, with many exporters missing out for no fault of their own.

EMDG funding in the budget forward estimates flatlining at $110M for the next 4 years.

EMDG and the Federal Election

The government is now in caretaker mode until after the May 3 election date.

On a day-by-day basis, for EMDG it is business as usual, grant milestone reports are still required, Round 4 grant offers are still being issued and the like.

Bad news to unsuccessful applicants (Tier 2 – based on lodgement time only) seems to be delayed and may not happen till after the election.

This could just be another one of my EMDG conspiracy theories.

We will see what happens in the coming weeks.

The Easter break and school holidays might add to the delays as well.

EMDG and the Election Campaign

Neither party has issued a formal trade policy so far as EMDG is concerned.

Nor has there been any direct EMDG announcement.

Opposition leader Mr Peter Dutton mentioning last Thursday that the Labor government cuts to the EMDG program were not helping exporters at this time.

This is a true statement; but by omission there was no mention of the prior Coalition government’s woeful changes to the EMDG application process that Minister Farrell inherited and has really struggled to find any meaningful solution.

While not directly related to EMDG last week, the Albanese government made the following announcement.

“Australia will make $1 billion in interest-free loans available through National Reconstruction Fund to businesses in response to new trade tariffs imposed by the United States.

“Zero-interest loans would be available for firms to capitalise on new export opportunities, building on the loans, equity and guarantees already available through the $15 billion fund.”

A more immediate and productive solution would be to inject another $30M or so to fix the EMDG Round 4 funding shortfall. Better bang for the government’s buck in my view.

EMDG and Trump’s Tariffs

Back in November as part of the Round 4 lodgement process, you had to choose which markets you intend to market to in 2025/2026 and 2026/2027 with many applicants choosing the USA as either a new or existing market.

What a difference a US election and new president can make.

At the time, there was no real inkling about the current US tariff maelstrom that’s happening now.

Tariffs are just a tax impost that make your goods more expensive in the USA and harder to sell. An exporter to the USA gets no benefit.

Here is a link to current advice from Department of Foreign Affairs and Trade (DFAT)
https://www.dfat.gov.au/trade/trade-and-investment/latest-us-tariffs

As well as the AusIndustry/Austrade Global Toolkit platform,
https://export.business.gov.au/pricing-costs-and-finance/tariffs-taxes-and-duties/us-tariff-changes-support-for-australian-businesses

Exporters at this time should not be locked into the US market. It makes no sense.

It has been promoted by both the Minister and Austrade that EMDG program is currently more flexible than it has been in the past to meet changing market conditions and exporter needs.

Changes can be made at the sole direction of the Austrade CEO as opposed to changes to the legislation itself.

This needs to happen now.

The newly appointed Austrade CEO, Mr Paul Grimes, needs to get his training wheels off and get moving.

All applicants, whatever their tier status need to be able to replace the US with another market.

Another letter for me to write!

EMDG and Round 4 Survey

Currently there is an Austrade survey to Round 4 applicants.

I hope the main result of the survey will record what a cock-up the lodgement process was, however, as for all government surveys it is all what/how the questions are asked in the first place. Let us see what survey results are announced in the coming months.

Austrade has already stated in a recent Senate Estimates hearing that “we learned a lot from the Round 4 lodgement process”.

I hope they learn to treat all exporters with much more respect, fairness and due process going forward.

EMDG is a great scheme, it is the application process that is currently failing.

2025 EMDG Review

Apart from the survey mentioned above, there is a major review of EMDG about to commence.

This is the major review of the program that happens every 5 years.

In short should the EMDG program continue or not? Is it meeting government objectives to help grow the Australian SME economy by way of international competitiveness and sales expansion?

The review headed by Mr Tim Yeend former associate Secretary for Trade and Investment DFAT, will call for submissions and hold public hearings in the coming months.

Mr Yeend is due to report by the end of November. It will have no impact on Round 4 – it will be about the shape of EMDG in the future.

In my opinion, the current lodgement process (first in first service) simply casts a spell over effectiveness and overall viability of the EMDG scheme and poses the question should EMDG continue or not.

The only way for EMDG to remain useful to exporters going forward is make the following changes: –

  • Remove the “first in, first served” approach.
  • Remove the Tier categories (types of exporters)
  • Exporters should be able to choose with flexibility which countries to market to, not government determined.

South Australian State Government – Global expansion program

A possible alternative to EMDG, maybe/maybe not.

See the following link.
https://statedevelopment.sa.gov.au/export-trade-and-investment/global-expansion-program

A short lodgement window, applications close this Friday 11th April 2025.

It’s competitive and not about helping you market overseas directly (airfares are not covered) but getting you ready to do so, business review and consulting advice in the main to be funded.

We are not going to play in this space.

Rounds 1, 2 & 3 Milestone Reports for 2023/2024.

Milestone reports must be submitted by May 31. There is no extension possible.

We have already reached out to clients about these until we are blue in the face.

We have already completed 90% of those due, the getting the final 10% done is proving more painful than a visit to the dentist.

We cannot help you unless you help yourself. The sooner we can submit the milestone report, the sooner it will be assessed and paid.

If you do not get your report in by the due date, you may have your grant offer rescinded.

Lost money for sure.

Round 3 Milestone reports for 2024/2025.

This must be submitted by August 30th. There is no extension possible.

Similar comments as above apply here as well.

We will be in touch between May & June to get the ball rolling.

Stuart & team

Mitchell & Co – March 2025 Newsletter

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March EMDG Update

Ho Hum here we go again.

Summer’s over, school holidays are just a memory for everyone.

The only constant is President Trump lurching from one drama to another.

You could not write a TV series that has so many plot twists.

Reminds me very much like Married at First Sight – high drama for sure.

In contrast EMDG now is not that exciting for sure, but please read on to be up to date on things.

Letter to Trade Minister Farrell.

My letter to the Minister some weeks back can be viewed on our website.

The Minister’s response (well lack of) can also be viewed on our website.

A very professional bureaucratic response that tells me absolutely nothing, no care or empathy and a total lack of responsibility.

I am mulling over having another go in the coming days.

Rounds 1, 2 & 3 Milestone Reports for 2023/2024.

For most of you, this has already happened.

We have 10% of lodgement numbers still to go.

The milestone reports need to be completed by May 31st; however, our focus is to get them done in March and April. Why, you ask?

Two reasons:

One, it means you will get paid sooner than later.

Two, we are anal retentive and have a list in front of us, that we want to tick off to get to 100%. It is driving us batty!

Nil milestone reports lodged after March 31st, will now cost you a $1,000+GST.

If we haven’t submitted your milestone report, please get in contact with us to help you with the preparations now!

Round 3 Milestone Reports for 2024/2025.

These are the milestone reports for this financial year, they can be lodged now as well, we have made a start with some clients already paid.

These reports are due by August 31st. There will be no extension possible.

Round 4

Processing by Austrade is happening.

There is some good and bad news for applicants.

Most applicants have already been issued a grant offer (grant issued and accepted) or per the EMDG portal the status is showing as “Pending grant agreement”.

In fact, the EMDG portal (which we check constantly on your behalf) is now very similar to an online purchase tracking your parcel delivery service.

“Pending grant agreement” means your grant offer is ready to be shipped/emailed but there is no indication of when it will be sent.

There are some other stages, submitted, assessment in progress, unsuccessful (for incomplete applications, which we have lodged appeals on your behalf) that means that things are yet to get to the assessment in progress stage.

After the pending grant agreement stage, it is all downhill from there, grant agreement issued, accepted and executed.

85% of clients are at or past the pending grant agreement stage.

Not all applicants I am sorry to say, will get to the pending grant agreement stage or beyond.

A small percentage of our Tier 2 clients who lodged after 11.20am or so AEST, as result of no fault of their own, i.e. portal system bugs, will unfortunately miss out.

As per the response from the Minister’s office, the bottom line of the response is no action will be taken, no responsibility or ownership.

Austrade’s spin doctors will come to the fore in due course. I am so sorry for those who will miss out, beyond our control, but it does not make it any easier to accept.

For those who have got the grant agreement the payment of your grant is “two-fold”.

A $20,000 prepayment in July 2025 for most, but not all applicants.

A final or full payment in July 2026, based on expenditure in your lodged milestone report (we’ll prepare this for you).

Such milestone reports now must be lodged before the year end, 15th of June 2026, strange but true, this only helps Austrade.

So, monies will have to be spent by the end of May 2026, you have been shortchanged a month of EMDG support. Not sure if that was discussed with any EMDG client focus group.

Just another one of those things that we must take on the chin, take a deep breath, regroup and keep going, just a bit like President Zelensky.

Stuart & Wayne

Letter to Trade Minister Farrell – 20th January 2025

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Jan 20th, 2025
Senator Farrell
Minister for Trade and Tourism
Parliament House
Canberra ACT 2600
Via email minister.trade@dfat.gov.au; senator.farrell@aph.gov.au

Dear Senator Farrell,

Export Market Development Grants (EMDG) Round 4 – Many applicants will miss out – a flawed and unfair application process.

I write in relation the Export Market Development Grant (EMDG) program, given the launch and close of Round 4 late last year.

Recent press indication the lodgement process for Round 4 being chaotic. I agree with those comments.

I did write to you back in May 9th 2024 (copy attached – with your of 15th August response as well) and predicted the outcome that Round 4 has now produced.

I do accept you inherited a flaw (new approach) to EMDG given the changes that came about from 2021.

The system (spilt payment) for the matching demand against funding available being far superior to that was now implemented for Round 4.

In the past only a small percentage of applicants (less that 20%) were not paid in full, the process was much simpler, more efficient, effective and gave much more certainty than now is the case.

Round 4 was the first to apply a “first come first served approach”.
Austrade stating that the justification for the new approach was twofold.

• Client survey results that 29% of those surveyed agreed with such an approach.

• Comparisons with other programs.

Both are very shallow arguments and do not support the outcome of the program as it now stands, in addition :-

• 71 % of those survey did not support the change in approach.

• Other grant programs were of a much different type and therefore not comparable.

A “first in first served approach” only works when the expected demand is anticipated to be roughly inline with the available funds. I refer you to my prior correspondence.

This is not the case for EMDG Round 4.

Most round 4 Tier 2 applicants (those wishing to expand their existing markets) will not be successful and not offered a grant agreement.

For Tier 2 before the cut-off time – 1.20pm on the opening day Austrade accepting some 1148 applicants, far more than the 620 as stated it would be doing so on its website.

The 1148 also does not take account the 200-300 applicants who were also frozen out from completing their applications and are therefore not included in the total above.

Doing the numbers:-

620 possible places

1148+200 =1,348 actual and possible applicants.

620/1348 = 46% possible success rate for applicants, less than 50%.

I do not accept the additional applications up to 1148 were allowed to act a “buffer” of ineligible applicants – close to double the number you are going to pay.

Does not sound right to me.

On the opening day November 12th there were several lodgement issues for applicants: –

• Application system bugs/errors – to be expected of course with any new system.

• A very confusing approach to how to input ones forecasted marketing expenditure.

• A change in actual lodgement portal input fields to the published guidelines per the Austrade website – different questions, change in numbering and fluid attachment requirements.

• If you did not apply, you could not do so again until 2027/2028 – as for the last 50 years or so, exporters should be able to apply every year.

• For WA exporters , they had to be online by 7.00 am their time, with many excluded before their normal opening hours.

The above factors causing some exporters due to no fault of their own (taking additional time given the above) to miss the cut-off time.

In addition, I am also concerned for the number of regional exporters that with poor internet connection who may not have been able to access the EMDG portal at all.

I did raise this issue with Austrade last year and was told that any such client should get in a car to drive to a better internet location.

I found the response dismissive to say the least.

Less than 50% of Tier 2 applicants after spending a lot of time and effort will now be successful, this is simply a policy failure of the highest order, and I urge you to undertake a full investigation.

For Tier 3 the impact is similar but to a lesser degree as exporters had a longer lodgement window.

I ask you to undertake the following urgent steps :- 

  1. Undertake an immediate investigation as to how such a terrible result for Tier 2 applicants came about – how many applicants did Austrade expect in the first place and why is the “buffer” of applicants over the funding so large – not in the order of 10%-15% as it should be.
  2. Undertake a review of lodgement numbers for Tier 2, by state and postcode to determine lodgement numbers by each type.
  3. Conduct an immediate survey to all applicants (including those who frozen out) and ask again, do you support a “first in first served approach”. It’s not fair to do so only to those that were successful.
  4. Inject additional funds for the 2025/2026 year to ensure that all eligible Tier 2 and 3 applicants are accepted and paid.
  5. That changes be made EMDG Round 5 to prevent such a similar result never happens again.

I am very keen to meet with you to discuss the above concerns.

I can arrange for an EMDG Round Table in South Australia for you speak to exporters first-hand about their EMDG Round 4 experiences.

I have done so for past Ministers. I would expect numbers to be more than 100. This could happen in other states as well.


Yours sincerely
Stuart Mitchell

Mitchell and Co
CC Mr Steve Georganas Steve.Georganas.MP@aph.gov.au

Mitchell & Co – Newsletter December 2024

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December Newsletter

We have not issued a newsletter to you for a while. Thank god I hear some of you saying.

EMDG Round 4

For the last couple of months, we have been focussed on the submission of EMDG Round 4 applications.

EMDG Round 4 being very problematic for all, a flawed process (first in first served) and portal processing delays and system errors on the day.

The lodgement date of November 12th was a day and half for sure.

We have been involved EMDG for over 25 years and we can tell you our stress levels have never been that high before.

All our clients were able to lodge their applications on the day. Well done.

Austrade has already sent a very upbeat email to its database, that’s their right to do so, but I would say the “lily has been gilded”, very much so.

Round 4 for Tier 2 applicants closed within 3 hours and 20 mins fully subscribed.

There are still some spots available for Tier 1 and Tier 3. This means that many Tier 2 exporters simply missed out for no fault of their own.

There is also uncertainty for successful applicants, as there is no guarantee that your accepted application will be approved, you could still get the pink slip advice “sorry we have run of money”, sometime down the track.

A dumb system for sure.

We think Austrade will start to process applications (acceptance or rejection) in the coming weeks, but with the Xmas period upon us, things won’t really start to ramp up until February 2025.

EMDG Round 5 will not happen for another 2 years, with more rules changes expected.

EMDG Milestone Reports

For those clients, that are yet to lodge their Round 1, 2 and 3 milestone reports we have already been nagging you to do so. We have about 20% to go.

You have a contractual obligation (per your executed grant agreement) to do so.

You have until May 31, 2025, to do so, but why wait!

Austrade is paying very quickly (we do give credit when credit is due) so if you want to get some money following before Xmas, hurry up and give us your information now.

If you have not spent any overseas marketing money in 2023/2024, just tell us and we’ll prepare & submit a “nil” return. We now do this at no charge for you, we may have to change this approach as New Year resolution on a simple cost recovery basis. Again, just tell us now and we will make it happen for you.

Either way, please contact us as soon as possible so we can complete as a job done for both of us.

Xmas Shutdown

All the best for the festive season.

Wayne is nicking off on holidays at the end of this week, back in mid Jan.

I will still be around, and I will have to lift my game and deal with things in his absence, both in terms of milestone reports and Round 4 processing.

In a formal sense our Xmas shutdown will be from 20/12/24 to 2/1/25.

Regards,
Stuart & Wayne

Mitchell & Co – EMDG Newsletter Mid – August

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EMDG Newsletter Mid – August

Round 4 Opening dates announced.

Applicant Requirements/Checklist.

This is a newsletter that you really do need to read.

Last week the new EMDG Round 4 guidelines were announced on Austrade website and via email.

Talk about landing with a thud, I would liken the delivery to a car/train/plane wreck with maximum impact.

The Minister tells you in his press releases that it’s good news for exporters, they are to get more money from the EMDG program.

This is bulldust.

The parallels are very similar to Qantas selling seats on cancelled flights, perhaps Alan Joyce’s new job is a PR consultant to the Minister.

Given Minister Farrell’s past life as union representative, the parallels to EMDG at this time is like addressing a gathering of employees to give them the following briefing.

“Dear comrades, I have some news for you.

On your behalf I been able to obtain an increase in your current wages for the next 2 years.

A round of applause!!!

However, it will only apply to a small percentage of you as most of you will no longer have a job, in fact you will have to reapply for your position, on a first come first served basis. Hurry up or you will miss out.

A round of jeers!”

When EMDG 2.0 was created in 2019 it threw out the baby with the bath water in trying to re-invent the scheme rules that had worked well for over 45 years.

After 3 years it now must be reinvented again, confirming the policy failure of the initial changes.

It’s been said by Austrade that those changes were a result of COVID-19, another whirlwind of bulldust.

Round 4.0 of EMDG 2.0 now contains a mixture of new rules and guidelines that means EMDG will now help even less exporters that it has in the past.

This completely defeats the purpose of an export incentive program if you ask me.

I am sorry to say that most of you will no longer be able to access the program.

The New round 4 changes affect all exporters.

The main killer will be the new application process/approach of “First In – First Served” (FIFS).

Grant payments will be made on a queue-based approach.

This is a really, really, dumb idea. It’s unfair to so many exporters particularly regional exporters or those who (due to no fault of their own), have bad connection or slow internet speed when applying via the EMDG portal.

Totally unfair and lacking due process.

If you are an exporter and have been paid 8 grants there has been no change to this rule, so you can do yourself a favour and stop reading, maybe even unsubscribe to our newsletter.

Round 4 will support expenditure for 2 years only: FY 2025/2026 and 2026/2027.

There is no EMDG support for FY 2024/2025 as advised before except for Round 3 applicants.

Austrade have announced that Round 4 of the program for Tier 1, 2 and 3 applicants will open on November 12th at 10.00 am AEST.

For Tier 4 industry body applicants will open earlier, November 6th, same time.

There is no closing date.

There is no need, as the program will close when funds are exhausted.

I anticipate this could be within 2 hours or so of opening, who knows.

I also fully expect the EMDG portal to crash on the day.

Austrade has placed a limit on the number applications it will accept.

Here is a summary checklist of the new guidelines as released last week.

Prime entry rule by tier:

  • Tier 1: New to export, ready to export.
  • Tier 2: Expansion of existing markets only.
  • Tier 3: Strategic Shift into new markets/countries (listed by Austrade, see below).
  • Tier 4: Must be for “new activities”.

Number of grants by tier (in total 1,900):

  • Tier 1: 500
  • Tier 2: 620
  • Tier 3: 650
  • Tier 4: 130

Min grant by tier:

  • Tier 1: $20,000 
  • Tier 2: $20,000
  • Tier 3: $20,000
  • Tier 4: N/A

Max grant by tier:

  • Tier 1: $30,000
  • Tier 2: $50,000
  • Tier 3: $80,000
  • Tier 4: $50,000

Required turnover by tier in 2023/2024:

  • Tier 1: $100,000 
  • Tier 2: $500,000
  • Tier 3: $1,000,000
  • Tier 4: N/A

Mandatory requirements for all tiers:

  • You must have lodged any outstanding milestone reports beforehand applying.
  • Financial statements for 2022/2023 and 2023/2024.
  • Australia Business Number (ABN).
  • High Quality Export Plan.
  • Lodgement will be via EMDG portal only.
  • Goods not made in Australia – additional submission.
  • Service other than Tourism – additional submission.
  • Projections of marketing spend by expenditure type.
  • Listing of future spend by country.
  • Should you be unsuccessful for Round 4, you will not be able to apply again until Round 5 – 2 years down the track.
  • Total grants receivable now and in the future to be less than $770,000.

Other rules for Tiers 1, 2 and 3:

  • Have been in business for at least 2 years prior to lodgement date – same ABN.
  • Minimum capacity to spend evidence $20,000 per year (Bank statement).
  • Turnover less than $20,000,000.
  • Tiers 2 and 3 – Export sales evidence (2 invoices) in 2023/2024.
  • You can only access Tier 1 for 2 years, Tiers 2 and 3 for 4 years.
  • For Tier 1 you must have completed an approved export training course or have passed Austrade’s Export Readiness Test as per the EMDG portal.
  • Export Sales & Marketing activities to be commensurate with the size of your business.
  • A Nil $ expenditure milestone report submitted will count as one of your grants….again not fair.

Tier 3 applicants only – which countries are covered for strategic shift expenditure:

  • Bangladesh
  • India
  • Singapore
  • Brunei Darussalam
  • Indonesia
  • South Korea
  • Cambodia
  • Italy
  • Taiwan
  • Canada
  • Japan
  • Thailand
  • China
  • Laos
  • Timor-Leste
  • Fiji
  • Malaysia
  • UAE
  • France
  • Netherlands
  • United Kingdom
  • Germany
  • PNG
  • USA
  • Hong Kong
  • Philippines
  • Vietnam

Note: Spain, Ireland, some other European countries, Mexico, Africa, South America and other Middle East countries have been left off the EMDG map!!!

Other rules for Tier 4:

  • No limit on grant years.
  • Export Activity must be new.
  • Membership must be SME focussed.

Applying via the EMDG Portal:

  • You must have a valid MyGovID that is linked to the applicant business in the Relationship Authorisation Manager (RAM).
  • You must be ready to lodge a completed application of the day the portal opens with all required answers and information on hand.
  • You cannot wait to start things on the day the portal opens, it will be too late.


What can overseas marketing money be spent on?

  • Maintaining a representative in a foreign country.
  • Short trips to a foreign country.
  • Consultants.
  • Short Trips within Australia.
  • Foreign Buyer visits.
  • Soliciting for business in a foreign country (Trade Fairs).
  • Free samples.
  • Promotional and advertising material (website etc).
  • Intellectual property rights.
  • Export Training for Tier 1 and Representative Bodies.

What you need to do next.

Re-read the summary above or if you like get onto the EMDG page on the Austrade website now all written in purple, a bit over whelming to say the least.

https://www.austrade.gov.au/en/how-we-can-help-you/grants/export-market-development-grants

Have a good hard think about your export plans for 2025/2026.

How much you would think you would likely spend, where (new or old markets etc) and what will be your new approach etc, in line with the above rules of entry.

Then reach out to have a chat with us or send us an email to express your interest in applying for Round 4 given our checklist of requirements as above.

If you have not given us your information for your current milestone report, do that first, then we have clear air to focus on Round 4.

We will then book a time to visit/speak to you and explain in more detail what needs to happen in terms of:

  • Tier status choice.
  • High Quality Export Plan requirements.
  • Spend levels – Budget forecasts for 2025/2026 and 2026/2027.
  • Supporting documentation.
  • Lodgement process.
  • Our Fee approach

We will be able answer a lot of the questions and frame what is required in terms of your export plan from your current milestone report.

We will be changing our business model given the FIFS approach. I have not worked the details as yet, but I wanted to get this email/check list to you first.

The most important thing is to start now, you really must get ready well in advance of the lodgement date.

Thinking of the colour purple (not the movie) on the Austrade website, given such dyes in the past were very expensive to produce (crushed seashells), purple cloth and robes were only available to a select few – kings and queens, the pope as well, who could afford it, another parallel to EMDG at the moment – only a select few will be able to access it.


Your loyal and humble servants.


Stuart and Team.

Mitchell & Co – June 2024 Newsletter

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June EMDG Newsletter.

EMDG is all about “reelin’ in the years.”, as the Steely Dan song goes.

2023/2024

This year is covered by Rounds 1, 2 and 3 applications.

Your current reporting requirement, your “2024 Milestone Report” is to record overseas marketing costs
you have spent from 1st July 2023 to 30th June 2024 – still 15 days to go.

You must spend your money in that period, EMDG works on a paid basis.

You are then paid at the rate of 50% of your costs, up to the capped figure per your original application and grant offer/agreement.

Note: You cannot claim for costs paid post July 1.

Round 1 and 2 applicants do not have any EMDG coverage for 2024/2025.

The sooner you lodge your milestone report, the better.

If you have not spent any money in 2023/2034, that’s ok, let us know and we will prepare a nil $ milestone report for you.

2024/2025

The “skipped” year or the “lost” year for EMDG.

Only Round 3 applicants have EMDG coverage for next financial year.

Most exporters do not.

2025/2026

This is when EMDG starts up again.

EMDG Round 4 will cover that year and beyond.

All applicants will have to re-apply afresh for EMDG support post July 1, 2025. None of the current grant agreements cover this period.

• Rounds 1 and 2 as mentioned above only covers to 30th June 2024, the end of this month.

• Round 3 ends June 30th, 2025.

There are new rules and not every past EMDG applicant will be able to access the scheme as before.

See prior newsletters for a more detailed analysis of things.

The lodgement period for applications will be either late this year or early next year, it is yet to be announced.

Detailed application guidelines are yet to released; I expect that will happen with a rush in the coming months.

There is nothing to do at this time.

We will reach out to you in the coming months – August/September/October.

Our focus currently is to complete the Milestone reports for Rounds 1, 2 and 3 (those we have not yet lodged).

All the best for EOFY!

Stuart & team

Mitchell & Co – May Newsletter

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Newsletter for May.

Time for another rambling about EMDG to help you brighten your day (or not).

We have 3 simple messages to get across our client base, some are impacted by all, others just one or two, again depending upon your age/tier structure, your all-important EMDG status – you might not worry about it, but we do.

In summary.

• Rounds 1 & 2 EMDG coverage ends June 30th, 2024 – you need pay your EMDG costs before then.

• Rounds 1, 2 & 3 Milestone reports – now being lodged and paid.

• Round 4 New Rules have been tabled in parliament – yet to be law but it is a happening thing.
In more detail for each:-

Rounds 1 & 2 EMDG coverage.

There is no EMDG coverage for 2024/2025, apart for a percentage of Round 3 applicants.

This is simply a reflection of a funding shortfall to the EMDG program and flaws in the overall fabric of EMDG (called EMDG 2.0), that have risen since they were introduced back in 2019.

We’re calling it a “skipped year,” others soften things by saying that “EMDG is paused at this time.”

To me it’s a new case of the left hand in government not knowing what the right is doing.

What is the point of working so hard (three cheers to Ministers Wong and Farrell) to get the tariffs lifted for wine into China, when EMDG support will be missing for 12 months to help new and existing wine exporters to enter / re-enter that market, it will be hard enough to recover those lost markets without new / extra marketing spend.

Isn’t that what EMDG is supposed to encourage???

You must therefore make sure you spend money on overseas marketing costs before June 30th. You cannot pre-pay any such costs for FY 24/25.

If you have been prepaid your grant, you must spent double that sum, any underspend, you will have to repay any overpayment amount.

You cannot carry forward the overpayment to any new grant agreement you may receive in the future.

To remain in the EMDG program from July 2025, you will have to apply for Round 4 later this year or early next year, see comments that follow in relation to that new merry-go-round.

Rounds 1, 2 and 3 Milestone Reports.

We have already lodged 2024 Milestone reports for Rounds 1, 2 and 3 applicants.

Payments are now flowing. We are processing as fast as we can.

It is a simple message here, if you have already spent double your 2023/2024 grant offer amount , please send your gear to us, and we’ll turn it around as soon we can.

Round 4 New Rules.

Round 4 rules have now been tabled in parliament.

They rules must “sit” (be tabled) for 15 days before both houses of Parliament before they become law.

This will happen sometime in July / August.

New guidelines to support the new rules will be issued later in the year with Austrade stating that the round will open late this year or early next year.

As stated earlier proposed changes to EMDG for Round 4 will mean that many exporters will not be able to count on EMDG support as in the past.

The changes for Round 4 are not about increasing the users in the scheme.

The new changes are about helping fewer exporters.

They are about changes in who can apply (eligibility rule changes) and how to apply (application process changes) to reduce demand on the scheme given that funding will now fall to $110M from July 1, 2025, the lowest on record since 1996.

A simple fix would be to increase funding – the supply of money to match the demand, but instead there are changes to dampen the demand on the program instead, strange but true.

I cannot help myself but to say the new changes are wrong on so many levels.

Eligibility changes.

The new rules stating:

• You must be trading for 2 years for applyIng for EMDG

• You now must submit a “high quality” export plan.

• You must be able show the capacity to spend at least $20,000 on overseas marketing.You must (if applying for the first time) have undertaken an approved export training course or pass a new “Export Readiness Test.”

• You must now have minimum turnover greater than $100,000 with the maximum turnover unchanged at $20M.

• You will get EMDG coverage for 2 years only – that is 2025/2026 and 2026/2027.

• If you execute a grant agreement and submit a Nil $ expenditure milestone report, that will still count as one of your grants notwithstanding no money is paid.

• For representative bodies you will only be supported for “new” activities.

• The three (3) tiers 1, 2 and 3 remain, but you will only be able access each tier twice.

• You must now pass all assessment rules for Goods not made in Australia (not just a majority).

The CEO of Austrade has been given a lot more power and discretion to administer the scheme as he or she see fit. This could be a good or a bad thing, only time will tell.

Application Changes.

This is going to be brutal with many exporters, in my view, missing out.

The scheme will shift from an open access one (all eligible exporters are paid), to a “first come first serve” approach.

“Amendments will facilitate the allocation of grants until funding is exhausted”

Applications will be paid up to the available funds. Then the tap is turned off.

Once the money runs out (and it will as the funding has been cut), applications will not be paid.

Your payment or non-payment will not be merit based, it will be queue based.

It’s the Taylor Swift ticketing approach, lots of people on the computer hoping and wishing for a ticket with many missing out.

I think this new approach hits the jackpot as being all encompassing – inefficient, ineffective and inequitable.

It is just bad government policy.

Why have an application process that’s so flawed in the first place?

It is just dumb.

The Minister can do better.

It can be fixed with more funding, to ensure the demand on the scheme better matches the supply of funds.

Or to prevent the ticket rush – make tougher eligibility rules in the first place so clients know if they should apply or not without wasting their time.

In the coming months we will contact you to get ready for the Round 4 as best we both can.

We will first discuss if you should apply or not, then work with how to make it happen with the greatest chance of success.

As always “keep exporting!” Chin up!.

Stuart & team

Mitchell & Co – March 2024 Newsletter

by Uncategorized

Austrade EMDG Update email sent today – now our turn!

We have been banging on about it for a while, now it is happening.

The EMDG portal for Milestone reporting for Round 1, 2 and 3 applicants will open on Monday 25th March, just before the Easter break! – however beggars cannot be too choosy as the saying goes. We will take it.

What does this mean? If you lodge early – post March 25th – you will be paid early before June 30th.

We have already made a start on the applicable milestone reporting information for several clients.

We will be ready to lodge as soon as the portal opens, and keeping our running shoes on to lodge as many milestone reports as we can over the coming weeks / months.

So it’s best to send your information to us now – even before Easter if you like – we have nothing better to do – sad but true.

This early lodgement process is only suitable if you have already spent double your grant offer amount, check your copy of the grant agreement for details.

If you have not spent the required amount, it will be best to wait until post July 1st to allow any additional expenditure to be included up to June 30th.

If we lodge your milestone report later (from 1st July), you will still get paid your grant offer amount, it just means you will be paid later that is all.

Please contact us if you have any queries.

Stuart & team.

Mitchell & Co – EMDG Newsflash Feb 2024

by Uncategorized

EMDG Newsflash

Austrade EMDG update email issued 19th February.

Round 1, 2 & 3 applicants have received an email from Austrade advising that they plan to open the EMDG portal 2024 Milestone reports in the coming weeks.

Austrade plan to open the milestone report portal earlier than usual for submission of activities and related expenditure incurred in the 2023–24 financial year.

Their IT System team is working towards opening the portal in March 2024.

As soon as the opening date is confirmed, they will announce this via email and their website.

They are also planning for the online portal to remain open throughout the remainder of the 2023–24 financial year and throughout the 2024–25 financial year.

Are you ready?

We want to hit the ground running and have made a start for some clients where we have access to their accounts, and we will keep working with you in the coming days / weeks.

Austrade also advise that payment will be made to those milestone reports submitted, once assessed.

So, the earlier we can start & submit the sooner you will get paid.

To receive your grant entitlement in full, you will need to spend double the grant offer amount listed in your grant agreement before 30th June 2024.

For those of you we have not contacted, let us know how we can help.

Please contact us if you have any queries.

Stuart & team.