Things have changed a bit since our last newsletter.
A change in government, a new trade minister, postponement of the 2023 EMDG round and rush of year processing/audit activity by Austrade for 2021 applications and 2022 grant offers.
More details on each follow:
New Trade Minister – the EMDG cheque writer
Senator Don Farrell is the new Trade Minister. Senator Farrell represents South Australia.
He was not the ALP trade spokesperson in opposition. He was however responsible for Tourism covered by Austrade the government agency which most would be aware administers the EMDG program which this newsletter is focused on.
Pre-election the ALP promised a mini review of the EMDG as it transitions from the old to new method of applying – in advance not in arrears.
We support the review. There are some big bugs to fix in EMDG for sure.
It will not mean more money into the program, nor a change in your existing grant offer amount that applies for this year and beyond.
The current method of applying is clunky and it has not delivered the upfront certainty as promised. It is now a three-step process and is simply not as effective or efficient in helping Australia’s export efforts as it should be.
Once the Minister announces the review terms – we will make submission on your behalf at that time.
EMDG Old – Applications for expenditure up to June 30th, 2021
99% of these applications have now been processed. The remaining few applications will be processed post July 1.
EMDG old is therefore pretty much over, bar the “last drinks” shout – the timing and payment rate of the second tranche for grant entitlements greater than $30,000 – see comments below.
I am sad to see it go; it has served exporters very well over the years. Enough said.
EMDG Old – Second Tranche
The second tranche payment referred to above will be paid soon, maybe later this week, but will happen before June 30th.
Once it happens, we will be in touch with you to confirm your bank account details as we have in the past.
You will not get your full entitlement.
My best guess is that the rate will be 20% to 30% of what you are owed.
Although Senator Farrell will determine the rate (write the cheque – push the EFT button) it is not of his doing that you will not be paid in full or receive a lower payout rate than you should, that rests solely with the previous Trade Minister. See our earlier newsletter “Robbing Peter to pay Paul”.
EMDG old therefore will not finish with a bang – high/full payout, it will finish on a whimper – a lower than expected payout rate, close to the worst on record.
EMDG New – First Round for 2022 and Beyond
This is the application lodged by us on your behalf before 30th November 2021 – Step One.
About 90% of the applications have now been completed and clients have an executed Grant offer in place – Step Two.
Tier 1 clients and Tier 4 Representative Body clients have already been paid their 2021/2022 grant offer up front.
The next step for all – Step Three – is the submission of a Milestone report on what you accomplished and spent on marketing activities for the 2021/2022 year.
For Tiers 2 and 3 it will mean you are paid your grant offer based on your spend amount in fy21/22- so it’s all about providing the report to “show me the money”.
We have written to you already on an individual basis, so we can make a start on the reports on your behalf.
We can lodge the actual report from July, 1 via the Austrade portal. We are on to it.
EMDG New – Second Round for 2023 and Beyond
Austrade postponed the 2023 and beyond round in the week after the election. We support the delay.
There is no advice as to when the new round will open. It could be any day, so we are working on these applications as well. Again, we have written to you on an individual basis already.
Changes here at Mitchell and Co
Sophie is leaving our team to do bigger and better things.
Not too happy about it (just joking) as we are going to miss her a lot more than we are letting on!
We are excited for Sophie, as her new role is such a fantastic opportunity – too good to pass up for sure.
I will take over from Sophie in dealing with your applications, hopefully without stuffing things up too much.
Stuart and team.