Austrade makes it easier for smaller companies to export!!
The Export Market Development Grant Scheme as Administered by Austrade has gone through a review and there are a number of changes that have been made with effect from 1 July 2006, that bodes well for our clients.
Extension of the EMDG scheme:
- After consideration of Austrade’s report of its review of the scheme, the Government has decided to accept its recommendation to continue the scheme until the end of 2010-11.
- The EMDG legislation will be amended to require another review of the scheme to report to the Minister for Trade by 30 June 2010.
Key changes to the EMDG scheme (to apply from 1 July 2006 i.e. to applications lodged from 1 July 2007, subject to passage of legislation):
- increase the overseas visit allowance from $200 to $300 per day
- amend the scheme’s rules to provide flexibility in handling emerging export sector applications that do not technically meet the current principal status requirements
- improve the scheme’s flexibility and transparency by modifying the current Australian origin rules
- make eligible an applicant’s expenses incurred to increase the return on the disposal of intellectual property and know-how to a related company
- improve risk management by: separating the overseas representatives and marketing consultants expense categories; capping overseas representatives expenses at $200,000 per annum; and capping marketing consultants expenses at $50,000 per annum
- revise the rule covering changes in business ownership allow Austrade to grant special approval status, including approved body status, for five years rather than three years
- ensure that the scheme’s rules clearly set out Austrade’s power to disregard any unsubstantiated, unreasonable, uncommercial or non-bona fide expense claim.
- The Government will legislate to limit the eligibility of cash payments made by applicants to $10,000 per claim.
- The Government will also remove the export performance test from the scheme. In the past, Companies who were in year 3 could only claim to a maximum of 40% of their export revenue, in year 4 20%, in year 5 10% and in year 6&7 5%.... if the legislation is past.... this falls away!!