Round 4 of the Export Market Development Grant (EMDG) program

4 September 2024

The Export Market Development Grants (EMDG) program is designed to support Australian small and medium-sized enterprises (SMEs) and their representative bodies in promoting their products in foreign markets. The upcoming Round 4 of the EMDG grant covers the financial years 2025-26 and 2026-27. We have prepared a summary on eligibility, the tiers available, and the funding details.

How it works

EMDG provides grants for the following:

• Tier 1 – small and medium enterprises ready to export.
• Tier 2 – small and medium enterprises exporting within existing markets.
• Tier 3 – small and medium enterprises exporting to new key markets.
• Representative bodies – that support small and medium business members to achieve export success.

Application and grant period

• Grant period: The grant activity must be undertaken within the two-year grant agreement period starting from 1 July 2025.
  
• Application period: The opening date(s) for Round 4 are as follows:
  • Representative bodies, applications open AEDT 10am on 6 November 2024.
  • Tier 1 – ready to export, applications open AEDT 10am on 12 November 2024.
  • Tier 2 – exporting within existing markets, applications open AEDT 10am on 12 November 2024.
  • Tier 3 – exporting to new key markets, applications open AEDT 10am on 12 November 2024.
• Applications will be assessed in the order they are received until the funding is fully allocated for each tier.

Important notes

• Matching contribution: The grant amount will be up to 50% of eligible project expenditure. SMEs must demonstrate the capacity to spend at least $20,000 of their own money per financial year on eligible marketing and promotional activities.
  
• Grant limits: SMEs can receive EMDG for up to eight financial years, with a total funding limit of $770,000 under the program.

Eligible entities

For SMEs:

To be eligible for the EMDG grant, SMEs must:

• Have a valid Australian Business Number (ABN).
  
• Be an eligible Australian person or entity as defined by the EMDG Rules.
• Have a minimum annual turnover for the 2023-24 financial year of more than:
  • Tier 1: $100,000
  • Tier 2: $500,000
  • Tier 3: $1,000,000
• Have a maximum annual turnover of less than $20 million.
• Have the capacity to spend at least $20,000 per financial year on marketing and promotional activities.
• Have been conducting business under the same ABN for at least two years.
• Have a high-quality plan to market eligible products in a foreign country.
• Meet all the eligibility requirements for the tier they are applying for.
• Not have exceeded the total number of financial years or the limit on total amount of grants allowed for the program or the tier they are applying for.
• Comply with all obligations under taxation laws during the current and previous two income years.

For representative bodies:

Representative bodies must:

• Promote the interests of a group of Australian businesses.
  
• Be representative of the members of an industry, a substantial part of an industry, or more than one industry.
• Have a substantial number of members who are exporting or ready to export eligible products.
• Not export eligible products as a primary activity.
• Not distribute income to members or shareholders.
• Have a valid ABN and be an eligible person or entity as defined by the EMDG Rules.
• Comply with all obligations under taxation laws during the current and previous two income years.

Eligible activities 

1. Maintaining a representative in a foreign country:

• Conducting market research or promotional activities.
• Includes expenses like salaries, office rental, relocation costs, etc.

2. Short trips to a foreign country:

• Up to 21 days of continuous travel for promotional activities.
• Economy class airfares and a fixed rate allowance of $350 per day for meals, accommodation, and incidentals.

3. Consultants:

• Engaging consultants for market research or promotional activities.
• Must be external to the business.

4. Short trips within Australia:

• Up to 21 days of continuous travel within Australia for marketing activities targeting foreign buyers.
• Economy class airfares and a fixed rate of $350 per day for meals, accommodation, and incidentals.

5. Foreign buyer visits:

• Up to 21 days of continuous travel for prospective foreign buyers to visit Australia.
• Includes expenses like airfares, accommodation, and meals.

6. Soliciting for business in a foreign country:

• Activities to solicit business in a foreign country, including trade shows and events.
• Must relate to the primary business of the grantee’s organisation.

7. Free samples:

• Providing free samples of eligible products to foreign persons.
• Includes costs like postage or freight.

8. Promotional and advertising material:

• Producing and providing material to promote eligible products in foreign countries.
• Includes website design, social media marketing, and Google advertising.

9. Intellectual property rights:

• Seeking the granting, registration, or extension of intellectual property rights in a foreign country.
• Includes payments to patent and trademark attorneys and relevant government offices.

10. Approved export training activities:

• For representative bodies, delivering export training to members to better market their products in foreign countries.

Grants available 

Tier 1 – Ready to export:

• Objective: Support SMEs ready to start exporting eligible products for the first time.
  
• Maximum grant amount: Up to $30,000 per financial year.
• Minimum eligible expenditure: At least $40,000 per financial year.
• Estimated number of grants: 500.

Tier 2 – Exporting within existing markets:

• Objective: Support SMEs to increase exports within existing markets.
  
• Maximum grant amount: Up to $50,000 per financial year.
• Minimum eligible expenditure: At least $40,000 per financial year.
• Estimated number of grants: 620.

Tier 3 – Exporting to new markets:

• Objective: Support SMEs to diversify their export activities to new markets.
  
• Maximum grant amount: Up to $80,000 per financial year.
• Minimum eligible expenditure: At least $40,000 per financial year.
• Estimated number of grants: 650.

Representative bodies:

• Objective: Assist SME members in becoming export-ready and expanding their export activities.
  
• Maximum grant amount: Up to $50,000 per financial year.
• Minimum eligible expenditure: N/A.
• Estimated number of grants: 130.

For more detailed information, please refer to the official EMDG grant guidelines and ensure you meet all the eligibility criteria before applying or contact PwC for more information. Our team is skilled at preparing applications. 

Please reach out if you would like to discuss any of the above.