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PKF Australia

Accountants and Business Advisers

Act now to claim your Export Market Development Grant

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Jeremy Pooley

Director

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Act now to claim your Export Market Development Grant

Posted 14 Oct 14 by Jeremy Pooley

Can your business claim an Export Market Development Grant (EMDG) for the last financial year? If so, you must lodge your claim by 1 December 2014.

Who is impacted?

If your business (whether a company, trust, partnership or non-profit) has a total group turnover of less than $50 million and incurred more than $15,000 expenditure in FY2013-14 to develop an export market (excluding NZ) it may be eligible to claim an export grant.

What has to be done?

This checklist will help you to cover off the necessary steps. Our team is also able to help with any of the below:

1. Identify eligible expenditures and supporting documentation;
2. Prepare EMDG claim including export business plan, export earnings and associated entity profile information;
3. Lodge EMDG claim electronically with AusTrade by 5pm Friday 1 December 2014. Late registrations are not accepted.

Is my business eligible for an EMDG?

There are a few simple 'rules of thumb' you can apply to your business quickly and easily:

  • Did you travel overseas to see prospective clients or develop a new market in the last financial year?
  • Did you earn export revenues?

What are the benefits?

An EMDG provides a grant of 50% of eligible export promotion expenditures. Claimants can secure up to $65,000, which is a notional grant ceiling based on extrapolating prior year number of applicants and amounts claimed, with a higher potential ceiling of up to $150,000 per applicant. The grant is taxable but is a great 'good news' story for your business.

Example 1: A website developer seeks to arbitrage the exchange rate and high salaries of web designers in the US. They will act as overflow and a lower cost service provider to web developers in the US, and allow them to operate 24/7. The EMDG will help defray promotional expenses.

Example 2: A mining services company becomes a first time claimant. The tax on the grant received is covered by accumulated losses enhancing the cash benefit to the claimant allowing them to continue to invest in export development.

If your business is a first time applicant, they can aggregate the prior two financial year's export development expenditures in their initial EMDG claim.

If you think your business might be eligible to claim an EMDG, act now to investigate the opportunity. To discuss your options or to get started, call Jeremy Pooley at PKF Lawler on (02) 8346 6503 or contact one of our offices around Australia.


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