June EMDG Newsletter
Every time we sit down to write a newsletter there is always something going on the world that makes EMDG pale in comparison.
This time I am not going to list them as they are all over the news anyway.
However, there are still important EMDG things to talk about.
This newsletter has been sent to all those clients who still have an application on foot under the EMDG program, either as Round 3 applicant to report on 24/25 (this year) results or a Round 4 applicant to get ready (or still to be approved) for 25/26 (next year).
End of Financial Year (EOFY) considerations.
Before 30th June, different rules apply in terms of payments to be made before or after date and terms of EMDG.
For Round 3 applicants, to include any current costs in your 2024/2025 milestone report, you must pay them before June 30th. You cannot however prepay costs that relate next financial year.
For Round 4 applicants, the reverse applies. You must delay any such payments till after July 1, again they must be for costs/activity incurred after that date as well.
Please call us if you have any expenses/payments of which you are unsure about.
Now some more detailed comments for each of Round 3 and Round 4 applications/status.
Round 3 – Milestone Reports.
Last month we completed and lodged for you all required 2023/2024 (prior financial year) Milestone Reports, by the due date of May 30th. Most such reports now having been processed or paid by Austrade.
There are only a small number remaining to be finalised.
Many clients are now no longer part of the EMDG program given the 2024 rule changes.
Some clients, a much smaller number, now have a requirement to lodge their 2024/2025 Milestone report.
We have already made a start on these. We will crank up the processing of these post July 1.
We have a joint obligation to have these reports completed & submitted by August 31, but as we may have mentioned in the past on the odd occasion, the sooner you/we lodge the report the sooner you will be paid.
Round 4 – Grant Offers and recent prepayment of 2025/2026 grant amounts up to $20,000.
Most applicants for Round 4 have been offered & accepted a grant agreement and so has Austrade. A fine processing effort by Austrade.
There is a small number of applicants, whose grant offer is currently pending or being processed.
There is a smaller number, who have not been told if they are successful or not.
Such “No News” is actually “Good News.”
It is all about your timing of lodgement of your application back on November 12th and Austrade taking steps to relocate funding between tiers (see some additional comments below) to free up funding to allow more lodged Tier 2 applications to be approved.
Originally, the real lodgement cut-off time for Tier 2 applications seemed to be about 11.20 am AEDT, albeit the portal itself was not shut down until 1.20 pm AEDT. An extra 600 plus applications in somewhat of a “twilight zone” – applications accepted with only a very slight chance of being paid after all the lodgement effort of us both.
The lodgement time clock has now advanced to 12.00pm AEDT. We are hopeful that it will continue to move forward so all our remaining clients will be paid. We need to get to about 12.30 pm AEDT for this to happen.
The extra funding has come about from Austrade shifting the planned July grant prepayments of $20,000 for 25/26 to this month.
Hence the recent flood of money, from unspent money on 23/24 milestone reports in this year to help defray the over demand of the scheme in 25/26.
If the money is not spent this year, strange but true it would just have to go back to the government’s consolidated revenue account.
Back in April I wrote to Austrade’s new CEO Dr Paul Grimes and suggested that the payments be made in June not July to prevent this from happening.
A copy of my letter and the reply I got can be viewed via the following links:
Mitchell and Co – Letter to CEO Austrade 09042015
Austrade CEO – response 23rd May 2025
I am not saying I had any influence in the decision at all, just that it was (in my mind) the right and most common-sense approach to ensure more Tier 2 applicants could be paid as is now happening, the EMDG lodgement time clock advancing as outlined above. Well done, Austrade.
Round 4 – Changes to Grant Agreements for the US market.
When I wrote to Austrade as shown, I also raised the issue of the impact of USA/Trump “beautiful” tariff taxes on imports to the US from Australia and elsewhere. Many client’s plans to go to the US (submitted last November) being impacted. I suggested that applicants be able to choose another market in lieu.
Again, Austrade has now acted, another commonsense approach and letters are now being sent out to applicants asking whether the USA is to remain a market for you.
If & when you receive the letter, please contact us and we can discuss your best course of action.
It will not mean your grant offer will increase, it will simply mean, you may be able to spend your money elsewhere.
Round 4 – 25/26 Milestone reporting requirements.
There is nothing that needs to be done now.
Once we get over the Round 3 milestone reporting processing hump in July and August, we will reach out you in September to see how you are tracking on your spending.
Key takeaway points currently are as follows: –
• You must spend over $40,000 in 25/26 (does not apply to representative bodies) to be paid a grant, if you do not spend this amount you will have to repay the upfront payment of $20,000 in full.
• Your milestone report can be lodged once you spend double your grant offer amount.
• Austrade has shortchanged the grant year for 2025/2026 (not a fan of this change at all) and now Round 4 2025/2026 milestone reports must be lodged by June 15th, 2026, prior to the end of the year, not after it.
• Overseas travel is limited to “economy ticket cost value” only.
• Claimable expenditure will be limited to those countries listed in your application.
I expect Austrade to over audit submitted milestone reports, a means to reduce the outflow of funds.
Good record keeping will be required without a doubt.
EMDG 2025 Review.
Austrade has commenced the required five yearly review of the program.
It has already sought feedback from representative bodies, and I expect more emails will be sent to all applicants in the coming weeks.
We encourage all applicants to make a submission. We’ll do one of course.
We will provide our thoughts for you to consider and use.
The focus being the “first in, first served” disaster for Tier 2 applicants. This should never happen again.
All the best for EOFY.
Stuart