The Export Market Development Grant (EMDG) is a Federal Government scheme administered by Austrade. It provides a rebate to Australian exporters for certain marketing costs (which includes Intellectual Property registration costs) incurred by them in an attempt to win business overseas.
The ability to claim the cost of registering intellectual property overseas (including patents and trademarks), was removed from the scheme in the 1990's but recent changes mean that exporters are once again able to claim a grant to cover part of their IP costs. This applies to cost incurred after 1 July 2008. The marketing costs that are covered by the EMDG are as follows:
- Overseas representation.
- Marketing consultants. Marketing visits.
- Free samples.
- Trade fairs and promotional events. Promotional literature and advertising.
- Overseas buyers.
- Intellectual property registration and related insurance.
The general rules of the EMDG scheme are as follows:
- Grant applications cover a normal financial year and companies can claim up to 8 times.
- A first time applicant can include 2 years of expenses in their application.
- Companies with a turnover up to $50M are eligible to apply for grants.
- The grant rate is 50% of eligible expenditure in excess of $10,000.
- Maximum grant in any year is $200,000.
- A performance test applies from year 3 that limits the maximum grant to a percentage of export earnings.
Further details on the EMDG scheme are available from the Austrade website: