How to get the best out of the EMDG scheme. ANZA Workshop 5 May 2008 Peter Mackey & Owen Felsman, Austrade

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1 How to get the best out of the EMDG scheme ANZA Workshop 5 May 2008 Peter Mackey & Owen Felsman, Austrade

2 Who we are The Australian Trade Commission is the Australian Government s export and international business facilitation agency Austrade helps Australian companies reduce the time, cost and risk involved in selecting, entering and developing international markets We re in the business of taking your business to the world

3 Austrade delivers Export and outward investment services and international business opportunities for Australian businesses Financial assistance through the Export Market Development Grants (EMDG) scheme Help for new and irregular exporters through the New Exporter Development Program Advice to the Australian Government Consular, passport and immigration services in some countries

4 Track record of success Austrade provided services to 12,827 businesses in , helping Australian businesses achieve $22.4 billion worth of exports Austrade assisted 5,417 companies who made export sales Of these, 1,996 were new or irregular exporters

5 Austrade s global network Overseas offices in 119 locations in 62 countries Includes offices in key growth markets: Austrade s China network expanding to 100 specialists in 15 locations - China is the world's fastest-growing major economy at 11.4% in and is Australia's second biggest export market Austrade s India network expanding from existing network of 5 offices - India has the world s second fastest growth at 8.9 % in and is now Australia s fourth biggest export market

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7 Austrade s Australian network 18 national offices 51 TradeStart offices in rural, regional and outer-metropolitan areas TradeStart is a partnership between Austrade and state/territory governments, industry associations and regional development organisations 8 Export Hubs one-stop shops for Austrade s TradeStart services and AusIndustry s products and services

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9 Austrade services Export information Country and industry information Seminars and workshops regular events held throughout Australia such as Getting into Export and industry-specific events Referrals to other government agencies and industry associations

10 Austrade services Export coaching Export capability assessment Advice on export planning, budgets and payment Advice on marketing strategies, marketing materials and company websites Taking advantage of free trade agreements Answers to specific questions such as on logistics and pricing

11 What is EMDG? A key Australian Government financial assistance program for aspiring and current exporters Designed to encourage small and medium sized Australian businesses to develop export markets Reimburses up to 50% of eligible export promotion expenses above a threshold of $15,000 Provides up to seven grants to each eligible applicant

12 EMDG key facts 3548 grants totalling $145.1m were paid to small and medium sized businesses in : % of recipients were small businesses, with annual income of $5m or less - average grant paid was $40,445 -$3.4 billion in exports was generated by EMDG recipients. NSW-based businesses received 1162 grants totalling $54.7m

13 EMDG Education & Training industry key facts NSW-based Education and Training businesses in received 63 grants totalling $2.8m: 73% of recipients were small businesses, with annual income of $5m or less average grant paid was $44,903 $75m in exports was generated by EMDG recipients.

14 Who can apply? Australian-based businesses, individuals, partnerships, companies, statutory corporations, co-op s, trusts that have: carried on an export business in Australia during the grant year annual income not more than $30m exported or promoted for export eligible goods, intellectual property or know how; delivered services outside Australia, provided certain services inside Australia to non-australian residents or promoted events held in Australia spent at least $15,000 on eligible export promotion activities over the last financial year (or the last two financial years for first grant) no disqualifying convictions can satisfy the grants entry requirements (first-time applicants only).

15 What can you claim? Overseas representation Marketing consultants Marketing visits Communications Free samples Trade fairs, seminars and in-store promotions Promotional literature and advertising Overseas buyers

16 What expenses can t be claimed? Expenses that do not fall into one of the seven eligible expense categories Those specifically excluded (e.g. of a capital nature) Those not incurred by the applicant or incurred outside the grant year Those related to trade with New Zealand Those reimbursed by third parties (except events promoters ) Those unsubstantiated or fraudulent Note: The eligibility of cash payments is limited to $10,000 per application.

17 What do you get? Maximum of 7 grants Minimum grant of $5,000 Maximum grant of $150,000 (subject to available funds) Split-payment system operates for grants over a certain amount (this amount varies each year) to ensure all eligible applicants receive a grant (See Grants under this specified amount are paid in full on assessment Grants over this specified amount are paid in two instalments: - an initial payment on assessment - a second tranche payment paid at the end of June 2009

18 Issues to consider You must be the principal in export transactions - the applicant must be the seller or intended seller of the services they are promoting to a foreign resident (education agents are not eligible) Services you are promoting Only claim those expenses that: - can be substantiated - have been acquitted by you, the applicant, during the grant year - relate to eligible products - relate to eligible promotional activities (not to sales) Use Australian dollar values in your application. Ensure everything you wish to claim is in your original application.

19 How to apply for EMDG Step One Step Two Step Three Learn about EMDG» read EMDG In Brief brochure» visit call Austrade on and ask for your local EMDG office» us at Check your eligibility to apply for EMDG and register online: Complete a application form and supporting schedules available on CD-Rom and on the Austrade website

20 How to apply for EMDG Step Four Review your application - do you have documents to substantiate the expenditure you have claimed? Have you attached documents for Grants Entry? Step Five Submit your application to your local EMDG office between 1 July 2008 and close of business 1 December Note: It pays to lodge early. Austrade gives priority to complete and accurate applications lodged by 30 September 2008.

21 Case study International Language Teaching Services Pty Ltd - Developer of contemporary materials for English language teaching. - Has been recording significant export earnings and increased income with sales of intellectual property licenses spreading. - Has extended its overseas marketing efforts to Japan, Korea, China, Taiwan and Germany. - Has received four EMDG grants which have partially offset the costs of overseas representatives, marketing visits, participating in trade fairs and promotional events, the production of literature and advertising: To survive, ILTS must continually invest in new projects. It takes a long time to produce and then sell books, and also we need to find a number of clients to cover our costs, so the return on our investment can be quite slow. We are very grateful for the assistance we receive from EMDG which helps us to invest in these new projects. - Jane Bowring, Director, ILTS.

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