Ceiling raised on initial payment of Export Market Development Grants

Media release

1 July 2011

Exporters will receive a higher initial reimbursement for their promotional expenses under the latest round of Export Market Development Grants.

From today, the initial payment ceiling of the EMDG scheme will be $50,000 for the 2010–11 grant year which just ended, compared with $27,500 in 2009-10.

The EMDG scheme is one of the ways in which the Australian Government provides assistance to small and medium-sized exporters. The grants reimburse exporters -up to a limit - for eligible expenses on the promotion and marketing of their international businesses.

According to Trade Minister Craig Emerson, reduced demand for EMDG grants over the previous grant year, coupled with changes to the scheme in 2010, have permitted a higher initial payment this grant year.

The initial payment ceiling is the maximum amount that will be paid as a first instalment to reimburse eligible EMDG applicants.

"An initial payment amount of $50,000 is the most equitable distribution of grant funding within the available budget," Dr Emerson said.

"It will provide grant recipients with a substantial level of immediate cash flow, which is always welcome at smaller companies."

Recipients for the 2010–11 grant year with an entitlement up to and including $50,000 will be paid in full. Those with entitlements above this amount will receive a second tranche at the end of June 2012, with the size of the payment to be determined then.

In the 2010–11 Budget, the Government committed to funding the EMDG scheme at $150.4 million a year, and also extended it for a further five years, to 2015–16.

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