The government has announced that $26m, or 15%, of the allocation towards the FY2021 EMDG has been cut from funding of the EMDG for FY2021 and FY2022.
Many of our clients who have exported their physical & digital products, or the services to customers out of Australia may be familiar with the Export Market Development Grant. (EMDG). In FY2022, the application process for this grant changed from being done after the end of the financial year, to a pre-expenditure application that was active for 2 or 3 years.
This week it has been reported that the funding for the grant has declined while the level of applicants has increased over 100%. Our clients are just starting to get feedback from their applications for both FY2021 and FGY2022. We are expecting the grants awarded to be scaled back and lower than previous years. For businesses who were anticipating the full grant allocations, we would recommend starting to look at other complimentary schemes such as the state based export grants and to also update cash forecasts accordingly.
Please get in touch with your account manager if you want to learn more about the EMDG or to put a plan in place to deal with these recent changes.