EMDG Update
March 2013
In this edition, information and updates on the Export Market Development Grants (EMDG) Amendment Bill, EMDG grants applications move online, businesses likely to receive full entitlements under EMDG and a successful EMDG client
If you have any feedback or suggestions for EMDG Update please email us on EMDG.help@austrade.gov.au
Export Market Development Grants Amendment Bill 2013
The Export Market Development Grants Amendment Bill 2013 is currently before Parliament. The Bill contains the following provisions:
- increase the maximum number of grants to eight (excluding approved bodies and joint ventures)
- exclude expenses relating to the promotion of sales to the markets of the USA, Canada and the European Union in grant years six, seven and eight for all applicants except approved bodies
- prevent further approval of joint ventures after 30 June 2013
- remove event promoters from the EMDG scheme
- prevent the payment of grants to applicants engaging an EMDG consultant assessed to not be a fit and proper person
- enable a grant to be paid more quickly where a grant is determined before 1 July following the balance distribution
- require applicants to acquit claims by individually paying for claimed expenses
- remove the limit on administrative expenditure from the legislation and introduces changes to the scheme’s funding for administration.
For the full text of the Bill please open this link for Export Market Development Grants Amendment Bill 2013.
The changes are proposed to come into effect from 1 July 2013. Austrade will prepare detailed guidelines for exporters planning to undertake export promotion activities in 2013-14 and beyond. This information will be posted on the EMDG web pages on the Austrade website prior to the commencement of the new financial year.
EMDG grant applications move online with e-lodge
From 1 July 2013 the EMDG grant application process will move to a new online system e-lodge, available via www.austrade.gov.au. As of 1 July 2013 hard-copy paper-based grant application forms will no longer be accepted. All self-preparing applicants and EMDG consultants will need to use the new e-lodge system.
How will the new e-lodge help you?
The new e-lodge is designed both to facilitate the grant application process and improve administration of the EMDG scheme, providing a safe, accurate and more streamlined process for lodging and managing your EMDG claims.
Prepare early and get ready for your online application
Before commencing an online EMDG grant application you will need to take two steps:
- e-lodge will require you to upload documents in support of your application. You will need equipment, such as a scanner, to convert paper based documents to pdf.
- Obtain an AUSkey to enable your business to easily and securely access the new e-lodge system. If you are:
- planning to prepare your own application, or
- you are an EMDG Consultant preparing applications on behalf of claimants.
Note: If you are engaging an EMDG Consultant to prepare your application, you do not need an AUSkey yourself.
Find out more about e-lodge
Businesses likely to receive full entitlements under EMDG
Mr Kelvin Thomson MP, Parliamentary Secretary for Trade, has announced that businesses are likely to receive their full entitlement under EMDG.
Over 2,600 small businesses with approved grants of up to $150,000 will likely receive the full value of their claims under the 2012-13 round of the recently-refocused Export Market Development Grants scheme, as Austrade estimates the second tranche payout factor this year will be close to 100%.
The EMDG scheme distributes grants to eligible businesses to cover export marketing expenses incurred in the previous year. The Government recently announced changes to sharpen the focus of EMDG on emerging and growth markets, particularly in Asia.
Mr Thomson said that the EMDG scheme was an important part of supporting exporters, which is why the Government had committed $125.4 million to it in the current Budget.
Read Mr Thomson’s Media Release
EMDG accelerates Zhik's international marketing
Zhik Pty Ltd is a designer and manufacturer of sailing wet gear, which today is worn by Olympic and professional athletes around the world. In fact, half of the international fleet at the 2012 London Olympics wore Zhik, and Zhik sailors won half the medals. Its sailing wet gear is exported to the USA, Japan, Germany, France, Italy, UK, Sweden and Denmark.
As a result of its export success, Zhik won the Premier’s NSW Export Award 2010 and the NSW Business Chamber Excellence in Export Award, and was a Finalist in the 48th Australian Export Awards.
Zhik began as an international business from the outset, and has had steady growth since, gradually increasing market share despite the difficult global trading environment.
Zhik uses very targeted marketing strategies, sponsoring international regattas and a fleet of world champion athletes. This approach, combined with product differentiation through patented functionality, provides high brand authenticity in the market that is embraced by customers as they become increasingly savvy in their purchasing decisions.
Mr Brian Conolly, Zhik’s Managing Director, was quite explicit about the role that EMDG has played in his business’ success. He said, “Quite simply, without the support from EMDG, Zhik would have been much slower in its international marketing and this would have reduced the growth of the business so much that it may have failed to break the inertia required for sustained success.”
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