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Mitchell & Co EMDG Newsletter May 2022

EMDG Old – Year ended June 30th, 2021 – the last of the old program.

Most applications have now been processed. We are tracking at 85% now processed and paid. We expect the rest to be completed before the end of June. There will be second tranche for payments greater than $30,000. The amount is unknown at this stage. It will not happen until the 3rd week in June.

EMDG New – Year ended June 30th, 2022 – the first of the new program.

Grant Offers for Tiers 2 and 3 are now happening – with over 50% now issued, this is a big improvement from the 5-10% some weeks back. We now expect all offers to be out by the end of this month.

Russian Sanctions – President Putin and EMDG.

What does President Putin have to do with EMDG, you ask?

Sanctions have been imposed by the Australian Government against Russia in response to Russia’s invasion of Ukraine.

Australia will prohibit the supply, sale, or transfer of certain luxury goods directly or indirectly to, for use in, or for the benefit of Russia.

The sanctions, work both ways, not only imports from Russia to Australia, but also exports from Australia to Russia.

In Theory, for your EMDG application: –

1.    Per section 20 of the EMDG Act, any expenses in respect of products that the sale or export of would contravene Australian law are excluded under the Act.

For this reason any marketing or promotional expenses incurred on or after 7 April 2022 in relation to the export of goods covered in the Autonomous Sanctions (Export Sanctioned Goods—Russia) Amendment (No.1) Designation 2022 to Russia will no longer be eligible to be claimed under the EMDG scheme.

2.    In addition to the above, any expense incurred after 7 April 2022 relating to an otherwise eligible product being exported to Russia and/or Belarus will be deemed by Austrade to be detrimental to Australia’s trade reputation, and as such excluded as an eligible expense per rule 47 of the EMDG Rules. This means all goods and services are effectively excluded from EMDG support for applicable marketing costs incurred in relation to Russia and Belarus.

In Practice, for your EMDG application: –

·         If a business only markets to Russia and Belarus, Austrade will not enter (execute) into a Grant Agreement with you. You will be excluded from any EMDG support until further notice.

·         To access EMDG support, you will need to change your marketing efforts to different markets going forward.

·          Marketing expenditure up to April 7 incurred in relation to both Russia and Belarus is still claimable, it’s only costs after that date that are excluded for those markets.

·         If you already hold an executed EMDG Grant Agreement, expenditure for any promotional marketing activities related to Russia/Belarus incurred after 7 April 2022 will not be supported through the EMDG funding.

·         If you are exporting to other countries in addition to Russia and/or Belarus, grant funding for the eligible expenditure in those countries is still covered by EMDG.

If you have any questions, as always, feel free to contact us directly.

All the best,

Stuart and Team.

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Response to our Second Letter to the Trade Minister

We got a second response from Trade Minister Tehan’s Chief of Staff, Mr Phil Connole, in relation to our follow up letter to Minister Tehan of 9th February.

The letter is attached below.

The response contains some more incorrect comments and assumptions about our advocacy on our clients’ behalf and about the type of work we actually do.

We did not get any answers to our three questions in our prior letter, only a “no decisions have been made as yet” response.

You can read the Response Letter here.

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Mitchell & Co EMDG Budget Newsletter March 2022

You might be wondering what Snoop Dogg and EMDG have in common?

Well, in our latest client newsletter, we talked a lot about RAP – in many different senses. In the case of this months discussion, RAP is a Homonym – a word with more than one meaning. It is also an Acronym, but this isn’t an English lesson.

Trust us, it will all make sense when you read on in our March EMDG Budget Update Newsletter, here!

 

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Mitchell & Co March 2022 EMDG Newsletter – Robbing Peter to Pay Paul

EMDG life as we know it is changed forever. On 28th February we lodged our last EVER EMDG Application under the EMDG Old rules.

In our recent client Newsletter, we addressed the rumours flying around about the treatment of 2021 grant applicants in relation to the overdemand for the 2022 grant round (the first year of EMDG New).

In essence, it is a case of “robbing Peter to pay Paul” and it is simply unjustified.

We addressed the first round of 2022 grant offers flowing through, albeit slowly, and the question of “where to” from here?

We continue with our lobbying efforts to be an advocate for our exporters, as we know how precious your time is.

It is, after all, our experience that counts.

You can read all about it in our March Newsletter, here.

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Response to our Letter to the Trade Minister

We got a response from Trade Minister Tehan’s Chief of Staff, Mr Phil Connole, in relation to our letter to Minister Tehan of 24th January.

The letter is attached below.

The response contains some incorrect comments and assumptions about why we write to the Minister in the first place.

We do so to advocate for our clients first and foremost, and to help the Minister do the best job he can. We are not just self-interested, as alleged by Mr Connole.

Incorrect statistics are also quoted with a lot of poetic license.

Stuart has not previously met with Mr Connole. He has now sought to do so.

You can read the Response Letter here.