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% 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. In order to do this you must choose from two different options, Option A and Option B, and state this in the application form.
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:
(a) 50% of (total eligible expenses less $5,000)
(b) the relevant % of export earnings depending on how many grants you have received. These percentages are as follows:
||Percentage of export earnings
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 (also see the Special Note for Option B). Applicants that meet 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.
Initial payment ceiling amount
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 be paid your full entitlement in one payment shortly after Austrade has determined your application.
If your provisional grant entitlement is above the initial payment ceiling amount, you will be paid:
- part of your entitlement in an initial payment equal to the initial payment ceiling amount shortly after Austrade has determined your application, and
- a second tranche payment at the end of the financial year
Second tranche payments
The value of your second tranche payment will be based on two factors:
- the amount of your provisional grant entitlement above the initial payment ceiling amount
- a payout factor that Austrade will determine at the end of the financial year based on the amount of EMDG funds remaining in the EMDG budget once all recipients' initial payments have been made
You should not plan or make financial commitments which 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.