What the difference between a Millstone or a Milestone?
A Millstone in the past was a heavy stone used to grind wheat to flour and the like and in more recent times used to represent a heavy burden that one must carry in life etc.
A Milestone – it’s the term used for the report that is prepared under the EMDG process to get your grant paid. It can be burden at some times, but really is the opposite when the Australian government helps offset your overseas marketing and sales activity. It’s a good thing. It’s the report “to show me the money.”
We aim to make the preparation of your required milestone report as easy as possible – a no burden approach for you as a client.
So, now an update of things and what EMDG milestone reports are all about.
As before, it all depends on where you fit into the program as a either a Round 1, 2 or 3 applicant.
We start in reverse order, Round 3, first.
Round 3 – covers 2023/2024 expenditure – Step 1 of the process now done – more to follow!
This was the recent activity that such applications all had to be submitted by last Friday. All done and dusted.
We had most of our applications lodged before the Easter break.
We did have a last-minute thriller seeker who contacted us on Friday mid-morning to lodge an application, got it in with hour to spare!
The submitted applications are in the process of being accepted by Austrade as “complete,” with about 50% already done.
The next step will be a review of the overall eligibility of each application in the coming weeks and then advice of the capped payment amount for each Tier (class of application), which should happen before June 30th.
Once this has happened, the applicable grant agreements will be issued to be executed by you via the MyGovID system.
Unless Austrade moves to a pre-payment model for your grant (this did happen for some for Round 1 applicants in 2021/2022), you will be paid your grant entitlement (50% of your overseas marketing expenditure up to the cap figure) post July 1, 2024, that is after the end of the 2023/2024 year.
That is when Round 3 Milestone reports must be submitted.
We will manage things for you as your application progresses through the above process.
Rounds 1 and 2 – covering 2022/2023 expenditure – Step 3 of the process – show me the money!
This is all about the submission of your “Milestone report” to seek payment of your grant entitlement for expenditure in this financial year 2022/2023.
• For Round 1 applicants – it will be second year seeking payment, you will then have a third year to go for 2023/2024.
• For Round 2 applicants – it will be your first year to seek payment and then you will have a second year for 2023/2024.
We cannot lodge the milestone reports until July 1, 2023.
We will do this for you, we’ll be in direct contact with you to start the process in the coming days/weeks, watch out for an email from Wayne.
If we have access to your accounting system, we can do 80% of the required work online for you with no Millstone burden/effort from you.
Otherwise, we need a transaction listing of your marketing expenses for 2022/2023.
In both cases we must also report on things that you did in the 2022/2023 year – i.e. what worked and what didn’t in terms of your overseas marketing activities – some general commentary and sales by country information.
Austrade has indicated in recent days that they are going to undertake pre-payment of certain Round 1 and 2 grant entitlements before the submission of the 2022/2023 Milestone reports, that is in the coming weeks before June 30th.
We will provide more details in relation to this approach as information is sent out to the EMDG client base.
We will discuss the merits to take up this option up with you once more details are known.
For all clients, the applicable milestone report will still have to be submitted post July 1.
Austrade will also be using a new system (via a third-party provider – eftsure to confirm the bank details are the same as per the submitted application and executed grant agreement before the EFT payment is released.
You will be sent an email in relation to your grant to confirm you bank account details as a “supplier” the term used by Austrade’s accounts payable system.
For Round 1 applicants the process will a bit more complicated as the payment goes into our trust account – that is our bank account details and we then pay you.
We will provide applicable instructions what to do at the time.
For Round 2 applicants the payment goes direct to you, so the process will simpler.
In both cases we’ll manage the process for you.
We will be paid when you are – when the Milestone report is assessed and accepted as in the past.
Simple…. no Millstone/burden at all!