Changes to the EMDG Scheme for the 2016-17 Grant Year
In March 2016 the Government made changes to the Export Market Development Grants Act 1997 that affect some expenditure categories.
These changes relate to expenses incurred from 1 July 2016 onwards, and apply to businesses intending to lodge an EMDG claim from 1 July 2017.
If you have already incurred expenditure and intend to lodge an EMDG claim from 1 July 2016 to 30 November 2016 (or 28 February 2017 if you are using a consultant with access to extended lodgement) the current scheme rules apply.
The changes to the Export Market Development Grants Act 1997 that will affect the eligibility of expenses incurred from 1 July 2016 (and claimed from 1 July 2017) are:
- Communications costs have been removed as an eligible expenditure category
- A limit of $15,000 has been placed on the free sample expenditure category, noting that for claimants that are combining two years of expenditure, and one of these years is the 2015-16 financial year, no limit applies
- The provision for the reimbursement of in-country travel (other than airfares) has been repealed and the amount of the daily allowance for overseas visits has been increased to $350 (from $300)
- The list of excluded expenses now includes those expenses relating to eligible promotional activities, things or eligible products that may have had a detrimental impact on Australia’s trade reputation.
With the exception of the “free sample” cap, these changes apply from the 2016-17 grant year onwards, and will therefore also apply to year 1 claims for that grant year that are combining two years of expenses.