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

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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

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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.

Mitchell & Co – Newsletter January 2024

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EMDG for 2024.

What a difference a new year makes to EMDG – well not that much yet, but change will happen in the coming months.

As foreshadowed in our previous newsletter last year – just getting the hang of saying that – changes will be happening for EMDG in 2024.

We do not know what the changes are in any detail at this stage, and I expect we will not know this until the middle of the year.

They will cover: –

  • EMDG Round 4 applications and coverage of EMDG expenses.
  • Rule changes to Round 4 – in essence to reduce demand on the scheme and hence the need to be able to meet the yearly reduction in EMDG funding from $157.4 to $110 million that applies post July 1, 2025.

EMDG Round 4 Timing

As explained before, Round 4 will now not happen until late 2024 or early 2025.

You will then apply and get approval of your grant offer before June 2025.

Your grant offer will cover EMDG based marketing expenses that you incur from July 1, 2025, to June 30th, 2026, and beyond, not for 2024/2025.

All current Round 1 and 2 applications expire on June 30th, 2024 (this year) so if you fit the bill to remain in the scheme (there will be changes to the current entry requirements)

A percentage of Round 3 applications also have grant offers that expire on June 30th, 2024.

Most exporters will therefore not have any EMDG coverage for next financial year 2024/2025 expenditure.

This applies to:

  • New exporters wanting to enter export markets and get EMDG support for the first time.
  • Exporters already in the EMDG program who want to claim again for EMDG support.
  • All Representative bodies unless those that applied for EMDG support for 2 years within Round 3.

You may be prepaid your Round 4 grant in June 2025; however, such a payment is not about what you spend in 2024/2025, it will have to be supported by what you spend in the following year 2025/2026 and beyond.

Over the Xmas break, I thought about what can be done about the above approach.

I have been mulling over in my head for weeks about writing a letter to the Minister.

I am almost finished; I must get the balance right between a big dummy spit and reasoned criticism. I expect to send off the letter in the coming days – I do not hold any hope it will make any difference whatsoever.

In a practical sense the Minister had to do something.

“However, with all due respect” – The reduced funding and lack of access to EMDG support for 2024/2025 makes no sense to me, it is a bit like dropping the baton in a 4 X 400 metre Olympic final – impossible to get back to win the race.

SME exporters that EMDG helps access world markets, do not compete amongst themselves, they are competing (racing) against exporters from other countries.

The lack of funding for new entrants to the scheme and that for representative bodies is one that will have the greatest impact and worrying to me.

The best thing you can do at this time:

As a Round 1, 2 or 3 applicant you must make every effort to spend double your grant entitlement for this financial year 2023/2024 before the EMDG gap year for most of you in 2024/2025.

Round 4 Rule Changes

These have not been released by Austrade yet.

We’ll let you know what changes there will be as soon they are released.

Back to the past for a moment.

Milestone Reports – Round 1 and 2 for 2022/2023.

Last financial year.

We only have a handful to go.

All payments have been made, it is about reports for those clients, who were prepaid in June 2023, to wrap the assessment process up.

Milestone Reports – Round 1, 2 and 3 for 2023/2024.

These are for this current financial year.

The reports will be due from July 1, but an earlier promise was made that they may be able to be lodged earlier than that.

As at today, the EMDG portal is not yet open for the upload of any supporting information.

We are however on to things already.

We have commenced processing for those clients whom we have online access to your financial information.

We’re simply trying to gather up a head of steam to get such reports in as soon as possible to get you paid sooner than later.

We do not know if there will be any prepayment of 2023/2024 grant entitlements in June this year as there was last year.

We’ll let you know once we do.

All the best,

Stuart & team.

October EMDG Newsletter – Newsflash

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What do Sharks and EMDG have in common?

They can both give you a nasty bite when you least expect it.

All EMDG current and future applicants must read this one.

A week is a long time in EMDG these days.

The timing dates and years to be covered for Round 4 of the program have been announced.

Not Good.

There is now to be a “Gap Year” for EMDG – so the acronym will now be “EMDGGY” for Round 4.

All Round 1,2 and the majority of Round 3 grant agreements (coverage of your overseas marketing expenses) expire as at June 30th, 2024.

Round 4 applications will now be able to be lodged from November 2024.

A delay from the expected period of March/April.

Round 4 expense coverage will be from July 1, 2025, not July 1, 2024.

There will be no EMDG coverage for the financial year 2024/2025, except for a small number of Round 3 (Year 2) The EMDG Gap year.

This is the first time ever in the 51-year history of EMDG that there is has been such a gap/non-payment year.

To repeat, so it sinks in:

• No EMDG expense coverage for 2024/2025.

• No EMDG expense coverage for 2024/2025.

Except for small number of Round 3 applicants.

Some exporters would not know about the scheme and have not applied before, in fact missing 2 years of coverage, 2023/2024 and 2024/2025, an unfair treatment to say the least.

Why is this gap year happening?

In simple terms, the money would normally be available for that year, has already been spent to fund Rounds 1, 2 and 3 in prior years.

Budget allocation in the future is being used to try to fix errors in EMDG policy design (causing over demand) of the past, the 2020 Anna Fisher review.

It’s the decision of the current Minister to skip applications for the 2024/2025 year.

It was not mentioned in the recent EMDG Refocus review process.

The alternative to doing so, would be to inject more money into the program.

Minister Farrell has already reduced the EMDG pot down from $157M to $110M so that was never going to happen.

I expect the “spin” about the changes will start to flow in the coming months.

The timetable again. This is just my guesstimate of things as no formal announcement of Round 4 is yet to be made.

November 2023 – advice on the new application Rules for Round 4 will start to flow – harder to access the scheme to reduce the demand on the EMDG pot (funding amount).

July – September 2024 – Milestone reports to be submitted for FY23/24 for Round 1, 2 & 3 applicants.

November 2024 – Apply and lodge your application/export plan to market & budget forecast.

Jan 2025 + Approval/grant offers and advice of the capped amount per “Tier” type.

July 2025 to June 2026 expense coverage.

July 2026 Milestone reports to the lodged and paid unless any prepayment of round 4 grant offers within the 2024/25 year.

In short, you must apply 8 months in advance of year you are seeking reimbursement of expenses for and then not be paid for another 12 months or so.

A 20+ month application to payment process, not grant best practice for sure in Australia or worldwide.

I am not sure anything can be done, cards and letters to the Minister will go unanswered.

We still have to deal with the upcoming rule changes to Round 4 as well.

The message now is simple:

Round 1, 2 & 3 applicants, you need to ensure you spend money on overseas marketing in this financial year to maximise your EMDG return.

Post July 1, 2024, there will be an EMDG drought until the 2025/2026 EMDG rains come again.

Mitchell and Co – August 2023 Newsletter

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This is our August EMDG Newsletter.

There are two main topics to talk about – EMDG present and EMDG in the future.

EMDG – Present

This is all about “Milestone Reports” – the third step in your grant process – to get paid or to support for some the prepayments made in June last year.

This applies for Round 1 and 2 only. Round 3, this will happen for you next year.

The lodgement window opening on July 10th and going to October 31st.

However, there is simple rule to follow here – “Lodge early, you will be paid early”.

We are already on this band wagon; we have lodged more than a few already and importantly Austrade is processing a lot quicker than last year.

The only delay is that once your milestone report is approved, the payment run for your EFT only happens in a batch every 2 weeks. Not complaining, just stating a fact.

EMDG – Future

We have made comment about this in prior newsletters.

This is about the future shape of the EMDG program from July 1, 2025.
Sometime off – but it will come around sooner than later.

It will impact all Round 1 and 2 applicants and some Round 3 applicants as at June 30th, 2025 the date that your grant agreements expire, that is you only have EMDG coverage until that date.

You will have to apply for Round 4 (application, new grant agreement) when it happens, most likely in March/April 2024 or even later.

EMDG Round 4 will be harder to apply for and there will be less money to go around between applicants.

Minister Farrell has already advised in the recent budget forward estimates the funding level for EMDG going forward.

• 2024/2025 $157.9M
• 2025/2026 $110.0M
• 2026/2027 $110.0M

A 30% reduction and the lowest funding level to EMDG since 1996. Again, just stating the facts.

In addition, Austrade is currently undertaking a review of what Round 4 and beyond should look like, to look at what markets will or will not be supported going forward (the targeting of the scheme) and changes to those who can apply.

This does not replace a formal independent review of the scheme due to be undertaken in 2024/2025.

Background on the nature of this current review is per the following link: 
https://www.austrade.gov.au/australian/export/export-market-development-grants/strategic-refocus-consultation

As per the discussion paper: 

“The government has also committed to strategically refocus the program to better support Australian exporters to develop new markets in line with the Government’s trade diversification priorities”.

EMDG support will be narrower that in the past.
Any changes will not be about encouraging more emerging exporters to access the program, but quite the opposite, new rules to dampen the demand for the scheme, closing the gates at overcrowded rock concert comes to mind. How to remove those already in the arena and to prevent new ones on the outside still trying to get in.

Submissions close this Friday August 11th.

I have completed a submission as attached per the following link:
https://mitco.com.au/news/

I think the proposed changes to the program are a mixed bag of things that are bad, really bad, or really, really bad.

Some proposed changes were under the old EMDG program, so whatever is old is now new again!

As I say above, it’s not about helping exporters, but reducing the pool of exporters (concert goers) who will get a EMDG ticket.

I can now stop thinking about winning a golden ticket like in Willy Wonka and the Chocolate factory.

In my view, for the government to get a better return on it EMDG investment, EMDG needs to have a direct link to export sale performance.

It’s back to the past again, you get 2 EMDG grants without the need for export sales, to remain in the scheme, you must do so at measurable sales percentage that diminishes the longer you can stay in the scheme.

More money would fix EMDG, but that is off the table.

You can submit a survey response yourself. Your call.

Here is the link to the survey questions:
https://survey.confirmit.com.au/wix/1/p857846685891.aspx

Like all surveys most of the questions are leading you to a desired outcome, however you can choose not to answer any question – “I would prefer not to answer” as well, you do not have to leave your name.

The questions do indicate where some of the focus will be – markets to be supported – for no real reason Peru seems to get a mention!

Have a look see and compare the changes with your own position.

The next step in the process will be from the Minister to formally sign off on the changes – “Exporters have been consulted” etc.

If there are too formal EMDG rule changes, then such changes are subject to parliamentary approval, so one could argue the merits again – a cards and letters campaign to the Minister at that time. That will be later this year.

If the changes are just “EMDG guideline changes” they will just happen without any additional debate, to be announced sometime in the new year.

Minister Farrell – Credit where Credit is due.

EMDG is not the only trade related matter on Minister’s Farrell plate. It comes third after the current round of free trade agreements and the current trade dispute with China.

Well done to the Minister and Senator Penny Wong for the recent removal of the tariffs of on Australian barley to China.

A glimmer of hope for other exporters, lobster and wine at the top of the list.