The Export Market Development Grants (EMDG) program is the Australian Government’s flagship program for supporting SMEs in developing and expanding their export markets. An entitlement, eligibility-based and demand-driven program, it is designed to encourage the creation, development and expansion of foreign markets for Australian products.
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.
The government announced cuts to the EMDG program in the 2023 Federal Budget and undertook a ‘strategic refocus’ in the same year. Program changes in Round Four reflect the findings of this refocus (see below).
EMDG past rounds: Relevant dates and status
EMDG are currently managing four grant rounds. Rounds One (2021), Two (2022) and Three (2023) of the EMDG program are now all closed. Round Four will be opening in November 2024. Successful applicants should refer to their grant agreements for their approved funding amounts and milestone reporting due dates, as these are specific to each round and recipient. There are over 9,600 businesses across the three rounds, who will continue to receive grant payments across the 2024/25 financial year – provided their grant obligations are met.
Next EMDG round opening in November 2024
The next round of the EMDG program, Round Four, will open for applications in November 2024.
This round introduces updated grant guidelines and eligibility criteria. There will be different opening dates for representative bodies and each tier. Here’s what you need to know:
- Representative bodies, applications open AEDT 10am on 6 November
- Tier 1 – ready to export, applications open AEDT 10am on 12 November
- Tier 2 – exporting within existing markets, applications open AEDT 10am on 12 November
- Tier 3 – exporting to new key markets, applications open AEDT 10am on 12 November.
Applications will close when the allocated funding for each tier is fully distributed. Austrade will provide regular updates on the portal and their website regarding the application status.
Grant agreements duration and funding
Successful applicants will receive grant agreements for up to two financial years, covering planned expenditure from 2025–26 to 2026–27.
For this grant opportunity (Round Four), up to $104.5 million will be available in 2025-26 and up to $104.5 million in 2026-27 for grant allocations.
EMDG is changing for Round Four
Following extensive reviews, analysis and stakeholder consultation, changes have been made to EMDG and the application process from Round Four.
The key changes include:
- Grant Availability: Approximately 1,900 grants will be offered in Round Four across all tiers.
- Grant Amounts: Maximum grant amounts will be set per grant tier and detailed in the Grant Guidelines. Grant amounts will be disclosed in advance.
- Application Assessment: Grants will be awarded on a first-come, first-served basis. The grant round will close once available funding is exhausted.
To learn more about the key changes visit the Austrade website here: What's changed in the Export Market Development Grant (EMDG) program | Austrade
Updated eligibility criteria
New changes have been made to eligibility for SMEs including:
Minimum turnover requirements:
- Tier 1: More than $100,000 per year
- Tier 2: More than $500,000 per year
- Tier 3: More than $1 million per year.
Additionally:
- SMEs must show the capacity to spend at least $20,000 annually on marketing and promotional activities, which must be their own funds and not covered by the grant
- Businesses must have been operating for a minimum of two years with the same Australian Business Number (ABN)
- Tier 1 applicants need to demonstrate export readiness by completing approved export training or passing the Export Readiness Test
- Tier 3 grants now include specific key markets to encourage experienced exporters to explore new opportunities and diversify their markets.
Which EMDG grants are available in Round Four?
EMDG grants are available in three tiers, including Representative Bodies Grants. They are designed to provide different levels of support as you grow your export markets throughout the different stages of your export journey.
Grants for small and medium enterprises (SMEs)
The three tiers of EMDG grants for small and medium enterprises (SMEs) are:
- Tier 1 up to $30,000 per financial year – Ready to export: For eligible SMEs who have not exported eligible products before but are ready to begin exporting in the grant year. For this grant in Round Four, you must prove your business is export ready.
- Tier 2 up to $50,000 per financial year – Exporting and expanding: For eligible businesses with plans to expand their existing exporting.
- Tier 3 up to $80,000 per financial year – Exporting, expanding and strategic shift: For eligible exporters who plan to make a strategic shift in their exporting business. Importantly, for this grant opportunity in Round 4, the export promotional activity must focus on key markets.
Grants for Representative Bodies
For Representative Bodies (organisations or associations promoting the interests of a group of Australian businesses), you may be eligible for a grant in Round 4 if you do one or both of the following:
- offer export training to SME members in your sector or industry
- undertake new export promotional activities on behalf of your SME members.
Important notes regarding applications for the EMDG:
- The definition of Strategic Shift was changed in Round 3. Learn more here.
- Grant recipients must spend at least an equal amount of their own money on eligible expenses
- All applicants are required to provide a plan to market, which shows 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?
The types of expenses eligible under each expense category of the EMDG program are:
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:
- 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 to a foreign country, departing from and returning to Australia. 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:
- 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, for 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 a 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.
BDO comment
All applicants, including those who have received a grant before, are highly encouraged to review the updated Round Four Guidelines to understand the new rules and eligibility criteria. Austrade will also host free webinars for each tier to explain the changes in detail.
It is important to apply early to secure a grant as applications for all tiers will close once funding is fully allocated.
Recipients 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.
We can help recipients understand the new changes and assess which expenses are eligible under the program. If you have any questions about the new EMDG Round Four changes or any other government grants, please contact us.