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EMDG & recent Amendments

01^st Jul, 2005

In the 2002-03 financial year, $143.9 million was paid to 3843 Australian businesses. The average grant was $36,280. Over two-thirds of businesses receiving EMDG reported annual income of $5 million or less. In the 2001/02 grant year there were 526 tourism recipients (14% of all recipients).

The Commonwealth Government has extended the $150 million per annum EMDG Scheme to 2005/06. However, the Government has recently announced several amendments to the Scheme.

EMDG is open to any Australian business that meets eligibility criteria, and in the first year of claim, satisfies Grants Entry requirements. In the tourism sector businesses that can apply for EMDG include direct providers of tourism services including transport, accommodation and tour operators, and inbound tour operators.

Applications for the 2004 -05 grant year open on 1 July 2005 and close 30 November 2005.

The extension of the EMDG Scheme from 2000/01 to 2005/06 includes:

Easier access with reduction from $20,000 to $15,000 in the minimum export promotion expenditure required.
Restriction that consultants must be short term only is removed and the overseas representation and consultant categories are merged and capped at $250,000.
The trade fairs category is broadened by including seminar costs, in-store promotions and similar activities.
Inward visit expenses for potential overseas buyers are an eligible category.
Professional conference and event organisers can access the scheme.
Amendments to the EMDG Scheme (2004/05 onwards):
- Reducing the annual turnover ceiling for applicants from $50M to $30M.
- Removing the $25M export earnings ceiling.
- Capping the maximum number of grants years at seven.
- Reducing the maximum grant amount from $200,000 to $150,000.
- The changes will take effect for claims received and paid from 2004-05 onwards.