What are Export Market Development Grants?

The Export Market Development Grants program is an initiative designed to support Australian businesses in expanding their reach in international markets. The program, offered by Austrade (The Australian Trade and Investment Commission), provides financial handouts for small to medium-sized Australian businesses to use for marketing, promotional or training activities that boost the business’s activity in export markets.

The initiative is a matched funding program, which means successful applicants must match the amount of their EMDG grant by spending an equal amount of their own money on the eligible activities.

How do the Export Market Development Grants work?

The EMDG program offers grants to businesses based on their overseas marketing expenses. The program operates on an eligibility-based model, which basically means that if your business ticks all the boxes you can receive funding. The grants are available in three tiers, each catering to businesses at different stages of their export journey:

Tier 1 – Ready to Export

The objective of Tier 1 is to support small-to-medium enterprises (SMEs) that are ready to start exporting to foreign markets for the first time.

Tier 2 – Exporting Within Existing Markets

Tier 2 supports SMEs to increase their exports within existing markets.

Tier 3 – Exporting to New Markets

Tier 3 supports SMEs in diversifying their export activities to new markets that align with the trade diversification agenda. The trade diversification agenda outlined by the government aims to strengthen Australia’s economy through trade with specific international markets.  As a result, the export activity must focus on the key markets of Bangladesh, India, Singapore, Brunei Darussalam, Indonesia, South Korea, Cambodia, Italy, Taiwan, Canada, Japan, Thailand, China, Laos, Timor-Leste, Fiji, Malaysia, United Arab Emirates, France, Netherlands, United Kingdom, Germany, Papua New Guinea, United States, Hong Kong, Philippines or Vietnam.

EMDG Grant Amounts

The minimum grant available under the program for Tier 1, Tier 2 and Tier 3 is $20,000 per financial year. As the initiative is a matched funding program this means a business also needs to contribute a minimum of $20,000 of their own funding.

Round 4 of the EMDG scheme opens on 12 November 2024 and closes when funding runs out (approximately 1900 grants). The maximum grant amounts for each tier will be:

  • Tier 1 up to $30,000 per financial year.
  • Tier 2 up to $50,000 per financial year.
  • Tier 3 up to $80,000 per financial year.

Eligibility Criteria for Export Market Development Grants

General Eligibility Criteria

To qualify for an Export Market Development Grant, your business must meet several criteria.

These include:

  • Having a valid Australian Business Number (ABN).
  • Being an eligible Australian entity, such as an individual, corporation, partnership or trust, with operations based in Australia.
  • Meeting the annual turnover requirements for the 2023-24 financial year, with minimum and maximum thresholds varying by tier.
  • Demonstrating the ability to spend at least $20,000 per year on eligible marketing and promotional activities, excluding the grant amount.
  • Operating under the same ABN for at least two years.
  • Having a detailed marketing plan tailored to your business and the specific tier you’re applying for.
  • Compliance with tax obligations and maintaining a professional and ethical business conduct.

It’s important to note that businesses with outstanding disqualifying convictions, those under insolvency administration, or those listed on the National Redress Scheme’s ineligible institutions list are not eligible for the grant.

Click here for detailed eligibility criteria for each tier.

Lastly, the New Zealand export market is not included in this program.

How to Apply for an Export Grant

Businesses can apply for an Export Market Development Grant via an online portal. The portal uses the Australian Government Digital Identity System to verify users, so applicants are required to use their digital myGovID to access the service.

There are 5 key steps to obtaining an export market development grant:

1. Review the Eligibility Criteria:

Before applying, ensure that your business meets all the necessary requirements.

2. Prepare a Marketing Plan:

Develop a high-quality plan outlining your proposed marketing and promotional activities, tailored to the export market you intend to enter or expand in.

3. Submit Your Application:

Applications can be submitted online through the Austrade website. Be sure to include all necessary documentation, such as your marketing plan, evidence of eligibility and financial statements. Remember to also complete any pre-program planning and requirements to ensure you are ready to export your products to eligible markets.

4. Await Assessment:

After submission, Austrade will review your application to ensure it meets all the criteria. You may be asked to provide additional information or clarification during this process.

5. Receive the Grant:

If your application is successful, you will receive a grant agreement outlining the terms and conditions. Once you’ve signed and returned the agreement, the grant funds will be disbursed according to the schedule.

The Austrade Export Market Development Grants program is designed to support Australian businesses looking to expand their global footprint. By providing businesses with funding to cut the cost of marketing expenses, the EMDG program helps reduce the risks associated with entering new markets and enables businesses to compete on the international stage.

On the other hand, if you are interested in looking into alternative lenders for your business funding needs but are unsure where to start, read our article What Documents You Need to Apply for a Business Loan. Alternatively, you can apply for a business loan with Bizcap. We offer fast access to flexible funding solutions, even for businesses that have been rejected by other lenders. Apply now to receive an obligation-free offer in as little as three hours, with same-day funding available..