High initial grant payments for small exporters
The Australian Government Minister for Trade, Warren Truss, announced that A$70,000 ceiling amount will be set for first-round payments to successful applicants under the Export Market Development Grants (EMDG) scheme in 2007-08.
This is the third consecutive year that the ceiling amount has been set at $70,000. This will ensure that about 80% of successful recipients will receive their full grant entitlement in a single payment immediately following assessment of their application.
It also means strong cash flow for all EMDG grant recipients. EMDG grants are paid in two steps. The ceiling amount is the maximum payment that EMDG recipients can receive on assessment of their grant application.
Successful applicants entitled to grants greater than the ceiling amount will receive a second payment in June 2008.
Truss said the EMDG scheme plays an important role in assisting small and less experienced exporters.
It is a key element in the Howard/Vaile Government’s package of programs that are helping Australian businesses to achieve greater commercial engagement in global markets, Truss said.
In 2006-07, Australian businesses received a total of 3,548 grants through the EMDG scheme totalling more than $145m, a 2% increase in the number of grants and a 6% increase in the value of grants over the previous year.
This year, the Australian Government has introduced further enhancements to the EMDG scheme, making the scheme even more relevant to the needs of small and medium-sized exporters.
Applications for the EMDG’s 2006-07 grant year opened on 1 July and will close on 30 November 2007. I encourage all eligible Australian businesses to apply for an EMDG grant as soon as possible, Truss said.
For more information about the EMDG scheme, including details of changes that apply to applications from 1 July 2007, visit Austrade website.
Background:
The Export Market Development Grants (EMDG) scheme is the Australian Government’s key financial assistance program for aspiring and current exporters. The scheme, administered by Austrade, encourages small to medium-sized Australian businesses to develop export markets by reimbursing up to 50% of eligible export marketing and promotion expenses above a threshold of $15,000.
It provides up to seven annual taxable grants, of a maximum of $150,000 each, to eligible businesses for all overseas markets except New Zealand.
An annual appropriation is provided by the Australian Government for the EMDG scheme. To ensure that each grant recipient receives an equitable share of the total available funding, the EMDG Act provides a two-tiered grant payment mechanism with some grants paid in two tranches.
First tier payments include:
All grants up to, and including, the amount that has been set as the initial payment ceiling amount; and
First tranche payments equal to the initial payment ceiling amount for grants provisionally assessed in excess of the ceiling.
The outstanding amounts for grants provisionally assessed in excess of the initial payment ceiling amount are held as a claim against the total funds remaining under the annual funding at the end of the financial year.
These remaining funds are then distributed on a pro-rata basis to the recipients whose provisional grant entitlement was above the initial payment ceiling amount, to a maximum of 100% of provisional entitlements. This is the third consecutive year in which the ceiling amount has been set at $70,000.
22-Aug-2007