Export market development grants

• EMDG reimburses half marketing expenses over $5,000 up to a payment of $150,000, minimum spent of $15,000.

• Provides up to eight years of grants to each person.

What is EMDG

Without Grants

• $5,000

• $4,000

• $9,000

• $10,000

• $12,000

• $40,000

With Grants

• Airfares $5,000

• Accommodation $4,000

• Conference $9,000

• Digital Media $10,000

• Free sample $12,000

• $40,000

• Grants ($40,000-$5,000)/2

• =$17,500

• Tax effects @30% $5,250

• Net $12,250

Who can apply

• Any Australian Business

• Annual income not more than $50m

• Export of goods or services – significant connection to Australia

• spent at least $15,000 on developing export market

Melbourne fashion brand promotes fashion garments made in China. All its products are made to designs developed in Australia by its employees.

• To be eligible you need to show:

primarily uses Australian-based business assets – brand, office, business equipment

primarily carries out activities in Australia-all activities except final manufacture are carried out in Australia

adds a significant proportion of the value of the goods in Australia

generates substantial economic benefits for Australia – including employment from its sales- employees, contractors, sales income.

Significant benefits to Australia

• Regulated by Austrade

• Full assessment of each application, e.g. Invoices

Business plan

Possible visits

• 30th November deadline to lodge

• We can help

How to get it

• Marketing visits

• Trade fairs, seminars and in-store promotions

• Promotional literature and advertising

• Free samples

• Marketing consultants

• Patent costs & others

• Overseas representation

• Overseas buyers

What can you claim?

Any marketing visit for the purposes of export promotion.

Examples:

• Air and ground fares(Only 65% of the cost of first-class airfares are allowed)• Daily allowance of $350 per day (max 21 days) for overseas visits.

Key points:

• Travel MUST be for export promotion purposes. Allowance based on “number of days worked”

• Must keep a travel Diary

Marketing visits

Participation in a trade fair, or seminar.

Examples:

• Setting up a private exhibition.

• Trade fair/seminar entrance/participation charges

Trade fairs, seminars

Free samples of product provided for export marketing

• All reasonable expenses attributable to the actual cost of providing the sample may be claimed

Key points:

• The sample must be free.• Administration and selling overheads are ineligible.• Samples of intellectual property/knowhow are not eligible.• A limit of $15,000 has been placed on the free sample expenditure category from

01 July 2017.

Free samples

Examples:

• Media advertising, including internet• Small value gifts containing applicant’s logo

Promotional Literature and Advertising

Maintaining an overseas representative on a long-term basis overseas.

Examples:

• Salary, fees, rent, motor vehicle hire/maintenance costs of overseas representative

• Business solicitation costs

Key points:

• Long term regarded as >12 months• $200,000 cap per application• Expenses have to be relevant to promotional activities•

Overseas representation

• A winery in Margaret river employs a business development manager in Jakarta, the cost of the employee and the expenses they incur (rent etc.) can qualify for EMDG.

Example

Key points:

• Consultancy assignment should be project or market specific• Consultant must be ‘undertaking work’ on behalf of applicant• $50,000 cap per application

Marketing consultants

Visits by existing or potential overseas buyers to Australia to view your products

• All reasonable expenses to bring an overseas buyer or potential overseas buyer to Australia

Examples:

• Air and ground fares• Accommodation and meals

Key Points:

• $45,000 total for ALL buyers / $7,500 max per buyer

• Entertainment costs not eligible

Overseas Buyers

• 21 days per trip

• $15,000 of cost

• $45,000 total/ $7,500 Per trip

• $200,000

Limitation

• Marketing visits No

• Trade fair No

• Advertising No

• Free sample Yes

• Marketing consultants Yes

• Patent Yes

• Overseas buyers Yes

• Overseas representative Yes

•

Cap?

• Mckinsey & company estimate that the value of cross-border consumer e-commerce transactions was valued at more than 50 billion Australian dollars in 2015. Australia is estimated to the 4th most popular source of products behind the United States, Japan and Korea. Chinese people love Australian products.

• You can sell your product through cross border e-commerce sites(CBEC), which allows products to be sold directly online sale to consumers.

• Chinese online shoppers use CBEC to access a wider choice of international products at a lower prices compared to traditional retail.

• CBEC is not the only means to sell imported products online in China. All products imported via B2B conventional trade through the China Australia Free Trade Agreement can also be sold online—as well as in traditional retail outlets

China’s raise continued

CBEC

• Keepcup

• https://www.youtube.com/watch?v=GxiZVB2iK30&feature=youtu.be

• Sydney bridge climb

• https://www.youtube.com/watch?v=Tv6j5pqXoqY&feature=youtu.be

• And there are so many more...

Success stories

Talk to us afterwards…

• To find out how to apply

www.westcourt.com.au

Westcourt Chartered Accountants

Ivy Yang + Ross Forrester