The Australian government is showing unprecedented support for Australian Exporters. These changes have been introduced by the government to keep our Australian export companies marketing their businesses throughout the world, while we navigate and re-enter a post COVID environment.
AusTrade (the body governing the EMDG) have recently announced that the Initial payment ceiling amount (IPCA) has been raised from $40,000 to $100,000 for the FY20 (July 2019 – June 2020) grant period.
This will have an immense impact on your business, as you will receive the full EMDG rebate (once authorised) if your rebate is $100,000 or less.
Previously an entity would have had to wait until the end of the next financial period to receive most of their entitlement.
The maximum benefit an entity could claim is $150,000.
This adjustment to the scheme comes after no change to the tranche 1 payment from last five years of $40,000. For many companies claiming the EMDG, the long wait for the majority of their rebate is over, as they are now entitled to receive most of their benefit upon approval.
REVENUE TEST DISCARDED
AusTrade have also removed the export revenue performance test which historically limited an entity’s rebates to the amount of foreign revenue they made.
In other words, if you are exporting you do not need any foreign revenue, at any stage, in order to claim the EMDG.
Historically, from your 3rd application onwards, a revenue test was implemented which limited the amount of your rebate depending on how much money you earnt. With this requirement halted for the FY20 grant period, you are entitled to claim the full benefit of 50% of your marketing expenses, including travel, consultants, online marketing spend and other marketing activities without having that adjustment.
These changes show the government’s commitment to helping our Australian exporters that may face difficulties in the months that follow. While there is uncertainty to what happens in the coming months, it is clear the government is dedicated to assisting our Australian exporters cope with this new normal. The benefits of these changes will allow all eligible companies to still claim from the EMDG and receive their benefit much faster.
You can submit a claim as soon as 1 July 2020.
Get in touch with Rimon Advisory to discuss these new changes and how you can benefit from them.