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.