Round 4 EMDG Program: Key Changes
· Round 4 Application Delay: Originally slated for early 2024, Round 4 of the Export Market Development Grant (EMDG) program will now open for applications in November 2024. This means that marketing and promotional activities scheduled from July 1, 2024, will be affected.
· No EMDG Support in FY25: It’s crucial to note that there will be no EMDG support for Australian exporters during the 2024-2025 financial year, except for Round 3 EMDG applicants with two-year grant agreements (FY24 & FY25). Put another way “There will NO EMDG support in 2024/2025 for new entrants or existing clients whose Round 1, 2 grant and 3 offers expire on June 30th 2024”.
· New Rules Ahead: Round 4 EMDG applicants can expect to apply under a new set of rules, resulting from the ongoing Austrade Strategic Refocus consultation.
Budget Reduction and Consequences
The EMDG budget has been reduced from $157 million to $110 million per annum, as announced by Trade Minister Farrell. This reduction is to be viewed in conjunction with results of the 2022 Operational Review report, which highlighted the need to balance the level of interest in EMDG with available funding, ensuring meaningful support for Australian exporters seeking to develop new export markets.
This budget reduction will result in fewer applicants and potentially larger grant amounts.
Extended Application-to-Payment Process
Starting from Round 4, EMDG applicants will need to apply for support eight months in advance of the grant year. Additionally, there will be a 12-month delay before receiving any payment. This elongated 20-plus-month application-to-payment process represents a significant policy challenge within Austrade, potentially hindering the objectives of the Export Market Development Grant Act.
Stay Informed and Act Now
We will continue to keep you updated as new information becomes available. If you are a current EMDG recipient, it’s crucial to maximize your grant by investing in overseas marketing in this financial year. Remember that from July 1, 2024, there will be no EMDG support until July 1, 2025.
Working with us and taking a proactive approach will make a difference in managing these changes effectively and ensuring your success in obtaining EMDG support.