EMDG Program - open dates, eligibility and how to apply

The EMDG program provides targeted financial assistance, for marketing and promotional activities and the development of marketing skills, to small and medium enterprises (SMEs) with a turnover of less than $20 million, and representative organisations.

What are the relevant dates for each EMDG round?

2021 (Round 1)

Almost all payments to Tier 1, Tier 2 and Tier 3 grantees have been made, and Representative Bodies for eligible expenditure incurred in 2021-22.

2022 (Round 2)

Closed on 17 August 2022. Milestone reports for EMDG Round 2 grantees will likely be due at the end of August 2023 and must be assessed before Austrade can provide payment.

2023 (Round 3)

Applications for Round 3 open 9am AEDT on Wednesday, 15 March and close 4pm AEST on Friday, 14 April 2023. There are some changes to the program in Round 3, including:

• Grant Agreements will be for one year, with a possibility of extension subject to availability of funds
• An update to the definition of strategic shift for Tier 3 grantees
• Businesses may be asked to provide evidence that they have satisfied their tax obligations during the assessment process.

Are you eligible for the EMDG program?

If you are an SME, you will be able to apply for grants of up to $770,000 per applicant over eight financial years. These grants are for promotional activities to market eligible products - including goods, services, events, IP and software - in foreign countries, or training activities to develop marketing skills. The eight years do not need to be consecutive.

Which EMDG grant could you be eligible for?

EMDG rants are available in three tiers, which are designed to provide different levels of support as you grow your export markets throughout the different stages of your export journey. In addition, the grant agreements under this program span multiple years, which gives applicants certainty over eligible grant payments for the next two or three financial years.

The three tiers of grants available are:

• Tier 1 – Ready to export: This is for eligible SMEs who have not exported eligible products before, but are ready to begin exporting in the grant year. In Round 2, up to $10,000 per financial year was granted to tier 1 applicants.
• Tier 2 – Exporting and expanding: This is for eligible exporters who plan to expand their exporting. In Round 2, up to $18,000 per financial year was granted to tier 2 applicants.
• Tier 3 – Exporting, expanding and strategic shift: This is for eligible exporters who plan to make a strategic shift in their exporting business. In Round 2, up to $28,000 per financial year was granted to tier 3 applicants.

High demand for the program has resulted in Round 1 and Round 2 grant amounts being significantly lower than the legislated caps.

It is important to note the following:

• The definition of Strategic Shift has been changed for Round 3. Learn more on the AusTrade website.
• Grant recipients must spend at least an equal amount of their own money on eligible expenses
• All applicants will be required to provide a plan to market. This will show Austrade what you intend to do to market your product overseas in the next two to three years, and why.

What types of expenses are eligible for EMDG grants?

The types of expenses that are eligible under each expense category of the EMDG program are outlined below:

Category 1: Maintaining representative in foreign country

Maintaining a representative in a foreign country, for more than six months in a financial year, who is either:

• Conducting research into the market in that country for your eligible products
• Undertaking promotional activities to market your eligible products in that country.

This includes expenses such as salary and wages of the representative, office rental costs, education of the representative’s children if relocated for the role, relocation expenses, and recruiting a replacement representative.

Category 2: Short trips to a foreign country

Up to 21 days of continuous travel for you or your representative, between Australia and a foreign country. This includes the cost of travel during the marketing visit - e.g. airfares, departure taxes, accommodation expenses, incidentals, ground transport and food.

Category 3: Consultants

Engaging a consultant to undertake either:

• Research into the market in a foreign country for your eligible product
• Promotional activities to market your eligible product in that country.

This includes expenses such as original research, export planning and export pricing strategies, and designing marketing materials.

Category 4: Short trips within Australia

Up to 21 days of continuous travel within Australia for you or your representative, to undertake activities relating to marketing your eligible product to potential foreign buyers. This includes food, accommodation and ground transport to meet overseas delegates, or foreign residents in Australia, in respect of promoting eligible products. This does not include ordinary remuneration for you or your representative.

Category 5: Foreign buyer visits

Up to 21 days of continuous travel between Australia and a foreign country, and within Australia, of a prospective foreign buyer of your eligible product so you can undertake promotional activities to market your eligible products to that buyer. This includes airfares to and from Australia, accommodation, food and incidental ground travel expenses.

Category 6: Soliciting for business in foreign country

Expenses for activities undertaken by you or your representative to solicit for business in a foreign country for your eligible products.

Category 7: Free samples

Providing free samples of your eligible product to either:

• A person in a foreign country
• A person in Australia from a foreign country, if your eligible product is tourism services.

This includes:

• Expenses that are attributable to the actual cost of providing product samples free-of-charge
• Costs such as postage or freight to deliver samples overseas.

This does not include samples given away as discounts or sales-related adjustments to the recipient, or where they relate to product or prototype development. Your samples must be the same as your product that would be provided under any future sales agreements.

Category 8: Promotional and advertising material

Producing and providing material to promote or advertise your eligible product in a foreign country. This includes website design and build costs, social media marketing, Google advertising, and design and printing of brochures.

Category 9: Intellectual property rights

Seeking the granting, registration or extension of intellectual property rights of your eligible product in a foreign country. This includes payments to patent and trademark attorneys and to relevant government trademark and patent offices.

Category 10: Training activities – Representative bodies

If you are a representative body delivering, or arranging to be delivered, training to members of the represented group to enable them to better market their eligible products in foreign countries.

Category 11: Training activities – Tier 1 applicants

If you are a Tier 1 applicant, obtaining training to enable you or your staff to better market your eligible products in foreign countries. 

Your training expenses are not eligible if that training is being funded under a grant agreement with a representative body.

You must keep payment records of all eligible expenditure and be able to explain how the costs relate to the conditions of your grant agreement. Eligible applicants will be required to provide a milestone report before Austrade makes a milestone payment. The report must be submitted in-line with the timeframes detailed in the grant agreement.

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