Federal Budget 2019 – What the EMDG means for your business
With the Federal Budget 2019 recently announced, Netregistry takes a look at how small and medium business can benefit from funding and grants provided. This year, small business and exports were a big winner.
What’s in it for small business?
Along with the asset write-off increase from $25K to $30K, The Federal Government have also announced that they will be giving $60M boost to the Export Market Development Grant (EMDG), which is administered by Austrade (the Australian Trade & Investment Commission). This is intended to help encourage and increase exports and increase the supply and demand of Australian-made products. So what does this mean for your business?
What is the EMDG?
The Export Market Development Grant, EMDG, is a government grant designed to provide financial support to current and aspiring Australian exporters. It allows SMB’s to utilise their grant to allow for overseas digital marketing, costs of export and other costs that come with selling their products outside of Australia. Exporting products can be a costly expenditure, with advertising, sales, promotional costs and overseas business trips, the funding necessary can limit the SMB’s that actually contribute to overseas selling. With this, the hope is more businesses will be able to claim the costs necessary to do so.
The EMDG encourages small and medium sized Australian business to develop markets for export. Provided you own the product that you are promoting, and are promoting it specifically for export, you are eligible to apply for up to eight grants. This is a fantastic opportunity to expand growth and opportunities for SMB’s.
What does the grant entail?
If you are eligible for the grant, you will be given a 50% reimbursement on eligible export related promotional costs, including overseas trips, advertising, sales reps, free samples, IP registrations and marketing consultants (does not apply to the first $5K). Each applicant can receive up to $50K per application relating to marketing expenses, giving SMB’s a decent sum to market their products outside of Australia.
Can I apply for the EMDG?
SMBs with an income of less than $50 million per year, who spent at least $15,000 on eligible export promotional activities, are eligible to apply. This however does only apply to businesses selling products outside of Australia. If you’re the business owner of the company, you should be able to get a clear indication of your eligibility. But if you aren’t sure whether you can apply, you can speak to an EMDG advisor by contacting 13 28 78.
When and how can I apply?
The next application dates open up on July 1st 2019 and close 30th November 2019, meaning now is the perfect time to dial up your digital marketing to promote your business overseas. If you spend now, you’ll be able to claim the money back in 3 months’ time.
To learn more about eligibility you can download the Austrade checklist. From there you will need to make sure that you have an account with AUSkey. AUSkey is used by businesses to receive safe access to government online services. If you don’t already have one, you can easily register in under 15 minutes. Once you’ve ensured you’re eligible you can select ‘Apply’ on the Austrade application form or call up an advisor. Then, it’s up to you to fill in the details and wait to get approval.
Your digital marketing & EMDG
There’s a lot that goes into exporting, and a lot that can be claimed. Did you know that you’re able to claim your website and web running costs as part of the asset write-off? You can also get additional support in digital marketing funds that are allocated towards helping you export Australian developed goods and digital products overseas.
2019 is the best time to invest in digital marketing to get your business in the eyes of overseas consumers. Claim back your marketing expenditure and allow for maximum growth worldwide, not just Australia-wide.
How you can utilise our marketing experts for offshore exports
From website development, to maintenance costs, consultant fees and costs for posting and advertising, if your business is targeting overseas audiences for your Australian-made products, you can get funds for these cases.
Netregistry can provide you with consultation, support and development of your digital marketing and website, and the EMDG allows you to better spend for this. While we handle the digital side of things, you can look after what you do best. To discuss your business needs and how you can better target overseas consumers, get in touch with Netregistry today on 1300 638 734