How is the grant paid?

Assessment procedure

Once you submit your application, Austrade checks to ensure you have provided all the required information. It is then assigned to an EMDG assessor, who will contact you when they begin assessing your claim.

Assessors attempt to process applications in a timely fashion. You can assist by ensuring that your application is complete and accurate so that it can be processed as quickly as possible.

Once an application has been lodged, the EMDG Act places strict limitations on adding to the amount originally claimed.

Assessment of your application may involve a telephone call or a visit to your premises. Documentation for all expenses and export earnings claimed should be maintained and be readily available for audit verification.

To find out more about what documentation is required for each expense category, refer to A Guide to Applying for EMDG (PDF) or register to attend an EMDG information session.

Split-payment system

Once assessment of your application has been completed, your provisional grant entitlement will be calculated. Your grant will then be paid under a split-payment system which ensures that spending under the EMDG scheme is kept within budget, and that all eligible applicants receive a grant.

Under this split-payment system, grants are paid in two rounds:

  • Round 1: an initial payment of grant entitlements up to the initial payment ceiling amount
  • Round 2: a second-tranche payment of grant entitlements above the initial payment ceiling amount

Calculating your provisional grant entitlement

For your first two grants, Austrade will calculate your provisional grant entitlement based on a formula:

  • 50 per cent of (total eligible expenses - $5,000 non-reimbursable threshold amount)

For example, if total eligible expenses were $55,000, the provisional grant entitlement would be $25,000. A minimum grant of $5,000 applies. The maximum grant for eligible applicants is $150,000, subject to funds available in the scheme.

From your third grant onwards, you must satisfy the requirements of an EMDG performance measure in order to receive subsequent grants. You must choose one of two performance measures, Option A or Option B, and indicate your choice in the application form.

Option A

Under Option A, applicants that have already received two or more grants will be subject to an export performance test. Under this test, and subject to the maximum grant of $150,000, Austrade will calculate your provisional grant entitlement as the lesser of:

  1. 50 per cent of (total eligible expenses less $5,000)
  2. the relevant percentage of export earnings depending on how many grants you have received. These percentages are as follows:
Grant year Percentage of export earnings

3

40

4

20

5

10

6

7.5

7

5

8

5

Option B

Under Option B, applicants that have already received two or more grants must meet the Australian Net Benefit requirements in order to be able to continue to receive grants. An applicant that meets these requirements will be entitled to receive a grant calculated according to its assessed eligible expenses, subject to the maximum grant amount and funds available in the scheme.

For more information, see the EMDG performance measure fact sheet (PDF).

Initial payment

The initial payment ceiling amount is the maximum amount payable as an initial payment to eligible EMDG applicants. The initial payment ceiling is announced in June each year.

If your provisional grant entitlement is below the initial payment ceiling amount, you will receive your full entitlement in one payment shortly after Austrade has processed your application.

If your provisional grant entitlement is above the initial payment ceiling amount, you will receive:

  1. part of your entitlement in an initial payment equal to the initial payment ceiling amount shortly after Austrade has processed your application, and
  2. a second tranche payment at the end of the financial year.

Second tranche payment

The value of your second-tranche payment will be based on two factors:

  1. the amount of your provisional grant entitlement above the initial payment ceiling amount
  2. a payout factor that Austrade will determine at the end of the financial year based on the amount of funding remaining in the EMDG budget once initial payments have been made to all recipients

You should not plan or make financial commitments that assume you will receive any particular level of second-tranche payment for which you provisionally qualify. Austrade accepts no liability for any loss arising from the actions of an applicant who assumes any particular level of payment under the EMDG scheme.