Subsidies and grants for exports in Australia

Subsidies for exports in Australia

Subsidies for exports in Australia

All countries aspire to boost exports as part of sound economic management. A country's export strategy is indeed inextricably linked to its economic health, and governments will aim to support its local companies in the expensive first steps of going overseas. Australia has several export grants for this purpose.

Export market development grants
(EMDGs)

The EMDG is an initiative by the Australian government which provides financial assistance to aspiring and current exporters. This scheme is administered by Austrade.

In order to claim a financial grant, the individual, partnership, company, association, co-operative, statutory corporation, or trust should apply for the grant in order to claim the expenditure for specific export promotional activities.

Here is what you can claim for in the following categories:

1. Overseas representative

  • All costs for an overseas representative to act on your behalf in marketing and promoting a product.
  • Portion of the fee or expense paid for the overseas representative. You cannot claim costs for non-promotional activities such as:
    • After-sales service
    • Post-contractual training
    • Sourcing of products
    • Arranging clearance
    • Warehousing/collection of goods
    • Importing or promoting products from other countries
      • A maximum of $200,000 per application is claimable.
        Austrade conducts detailed checks on overseas representative claims and may contact overseas representatives through phone or in person.

2. Marketing consultants

  • Cost of an arms length consultant to undertake export research or marketing activities.
  • A maximum of $50,000 per application is claimable.

3. Marketing visits

  • The cost of travel during marketing visits.
  • An allowance of $300 per day is claimable for overseas visits.

4. Communications

  • The cost of communications when promoting products.
  • If expenses on communications is not claimed, 3% of the grant will be added automatically to the claim.

5. Free samples

  • Cost of providing free samples when promoting export products.

6. Trade fairs, seminars, and in-store promotions

  • Cost incurred when participating in an international trade fair, seminar, in-store promotion, international forum, private exhibition, or similar activity.

7. Promotional literature and advertising

  • Costs of promotional material.

8. Overseas buyers

  • Cost of bringing non-resident potential buyers to Australia.
  • A maximum of $7,500 per buyer per visit.
  • A maximum of $45,000 per application.

9. Registration and/or insurance of eligible intellectual property

  • A capital of $50,000 per application.
  • Payment made to third parties.
  • The cost of insurance premiums for protection against possible infringement of intellectual property.

Requirements to claim the EMDG

  • Funds must be spent to seek out, create demand, and develop an export market for your product.
  • Claimant must be the intended principal in export transactions.
  • Expenses must be paid by you during the financial year.
  • Item paid must be provided by you.
  • Evidence of paid items.
  • Documentary proof is needed for overseas representatives and marketing consultants showing the role and functions of the aforementioned.
  • Trip reports, boarding passes, diary notes, and other pieces of evidence that substantiate trip details for marketing visit grants.

Ineligible expenses

  • Expenses that do not support export promotion.
  • Expenses which are not substantiated.
  • Expenses incurred by a related business entity.
  • Expenses for businesses with the Democratic Peoples Republic of Korea, Iran, and New Zealand.
  • Expenses incurred by you when you were not a resident of Australia.
  • Expenses for after-sales activities.
  • Expenses subject to a reimbursement by a third party.
  • Expenses relating to an illegal or unlawful activity.
  • Expenses which are commissions or discounts.
  • Expenses as payment for Australian tax, levy, or charge.
  • Expenses involved with any pornographic material.
  • Cash payments exceeding $10,000 per application.

Austrade provides a lot of support, but eventually the work needs to be done either by yourself or by an experienced export consultant. Alliance experts is such a consultant, we help you with having the best export plan, finding local partners or your complete market entry.

This entry in Australia was updated on June 12, 2018 by specialist.