EMDG Eligibility and the Benefits of Using an EMDG Consultant
Overseas expansion is risky business, encourage your ambition and reduce the risk by claiming the Export Market Development Grant (EMDG) – A potential 50% reimbursement of eligible promotional expenses to a limit of $150,000 per year.
So is your business eligible for an EMDG claim? And should you consider using an EMDG Consultant to lodge your claim?
What is EMDG?
The Export Market Development Grant (EMDG) is an Australian government initiative designed to provide financial assistance to current and aspiring Australian exporters. EMDG claimants are reimbursed up to 50% of eligible export promotional costs.
The following nine categories of export promotional expenses can be included in your EMDG claim:
Overseas representatives – You can include in your EMDG claim the cost paid to overseas sales representatives for the purpose of promoting your product outside Australia.
Marketing consultants – The cost paid to a consultant to conduct export market research and other marketing activities meets the EMDG eligibility criteria.
Marketing visits – The cost of travel (airfares, taxi fares, visa fees) undertaken by you, your staff or associates for the purpose of seeking out new export markets or promoting your product for export can also be included in your EMDG claim. This category includes a daily claimable allowance of $300 to cover the costs of accommodation, meals and entertainment.
Communications – The cost incurred for communications relating to the promotion of your product (fax, emails, telephone) is another category of EMDG eligible expenditure.
Free samples – You can include in your EMDG claim the cost of giving away an exact specimen of the product you are promoting for export.
IP registration and related insurance – The cost of registering IP under foreign laws including the cost of obtaining insurance to protect these rights.
Trade fairs, seminars and in-store promotions – You can include in your EMDG claim the cost paid for the participation in such or similar external promotional activities.
Promotional literature and advertising – The cost paid for promotional material such as brochures, advertising, export market specific websites also meets the EMDG eligibility criteria.
Overseas buyers – The cost of bringing a potential buyer into Australia to influence the purchase of your product.
You are eligible to claim the EMDG grant if you meet the following criteria:
You are an Australian individual, company, trust, partnership, association or co-op carrying on a business in Australia;
You have a total annual sales turnover of less than AUD $50M;
You spent at least $15,000 on eligible EMDG promotional expenses;
You are the principal (rather than an agent) in the promotion of eligible goods/services, tourism services, an event held in Australia, intellectual property and know-how.
The Austrade EMDG Checklist can help determine whether you are eligible to claim an Export Market Development Grant.
Why use an EMDG Consultant?
Unlike other government grants, the Export Market Development Grant is not based solely on self-assessment. This means that after you lodge an EMDG claim, you should expect an Austrade officer to contact you to conduct a thorough review of your EMDG claim with a focus on business and expense eligibility. Here are a few reasons why you should consider using the services of an EMDG consultant:
Over 70% of all EMDG claims are prepared and lodged by an EMDG consultant;
EMDG claims lodged by an EMDG consultant are on average higher in value than EMDG claims lodged by self-preparers;
EMDG consultants have a claim adjustment rate lower than self-preparers;
An EMDG consultant can help organise substantiating documentation so that Austrade queries are easily addressed;
An EMDG consultant can assist with Austrade audits and onsite visits;
Getting the right advice from an EMDG consultant from the start will allow you to better plan and budget marketing activities.
For more information on EMDG eligibility please contact the author; — Hilal@Enterprise1.com.au