Mitchell & Co – Newsletter January 2024


EMDG for 2024.

What a difference a new year makes to EMDG – well not that much yet, but change will happen in the coming months.

As foreshadowed in our previous newsletter last year – just getting the hang of saying that – changes will be happening for EMDG in 2024.

We do not know what the changes are in any detail at this stage, and I expect we will not know this until the middle of the year.

They will cover: –

  • EMDG Round 4 applications and coverage of EMDG expenses.
  • Rule changes to Round 4 – in essence to reduce demand on the scheme and hence the need to be able to meet the yearly reduction in EMDG funding from $157.4 to $110 million that applies post July 1, 2025.

EMDG Round 4 Timing

As explained before, Round 4 will now not happen until late 2024 or early 2025.

You will then apply and get approval of your grant offer before June 2025.

Your grant offer will cover EMDG based marketing expenses that you incur from July 1, 2025, to June 30th, 2026, and beyond, not for 2024/2025.

All current Round 1 and 2 applications expire on June 30th, 2024 (this year) so if you fit the bill to remain in the scheme (there will be changes to the current entry requirements)

A percentage of Round 3 applications also have grant offers that expire on June 30th, 2024.

Most exporters will therefore not have any EMDG coverage for next financial year 2024/2025 expenditure.

This applies to:

  • New exporters wanting to enter export markets and get EMDG support for the first time.
  • Exporters already in the EMDG program who want to claim again for EMDG support.
  • All Representative bodies unless those that applied for EMDG support for 2 years within Round 3.

You may be prepaid your Round 4 grant in June 2025; however, such a payment is not about what you spend in 2024/2025, it will have to be supported by what you spend in the following year 2025/2026 and beyond.

Over the Xmas break, I thought about what can be done about the above approach.

I have been mulling over in my head for weeks about writing a letter to the Minister.

I am almost finished; I must get the balance right between a big dummy spit and reasoned criticism. I expect to send off the letter in the coming days – I do not hold any hope it will make any difference whatsoever.

In a practical sense the Minister had to do something.

“However, with all due respect” – The reduced funding and lack of access to EMDG support for 2024/2025 makes no sense to me, it is a bit like dropping the baton in a 4 X 400 metre Olympic final – impossible to get back to win the race.

SME exporters that EMDG helps access world markets, do not compete amongst themselves, they are competing (racing) against exporters from other countries.

The lack of funding for new entrants to the scheme and that for representative bodies is one that will have the greatest impact and worrying to me.

The best thing you can do at this time:

As a Round 1, 2 or 3 applicant you must make every effort to spend double your grant entitlement for this financial year 2023/2024 before the EMDG gap year for most of you in 2024/2025.

Round 4 Rule Changes

These have not been released by Austrade yet.

We’ll let you know what changes there will be as soon they are released.

Back to the past for a moment.

Milestone Reports – Round 1 and 2 for 2022/2023.

Last financial year.

We only have a handful to go.

All payments have been made, it is about reports for those clients, who were prepaid in June 2023, to wrap the assessment process up.

Milestone Reports – Round 1, 2 and 3 for 2023/2024.

These are for this current financial year.

The reports will be due from July 1, but an earlier promise was made that they may be able to be lodged earlier than that.

As at today, the EMDG portal is not yet open for the upload of any supporting information.

We are however on to things already.

We have commenced processing for those clients whom we have online access to your financial information.

We’re simply trying to gather up a head of steam to get such reports in as soon as possible to get you paid sooner than later.

We do not know if there will be any prepayment of 2023/2024 grant entitlements in June this year as there was last year.

We’ll let you know once we do.

All the best,

Stuart & team.

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