Export development takes time, money and careful planning. Whether you are preparing to enter your first overseas market or looking to grow sales in markets where you already operate, the Export Market Development Grants program, commonly called EMDG, may help support eligible export marketing activity.
The key is understanding that EMDG is not a general business grant and it is not simply a reimbursement for any overseas expense. It is a competitive, matched-funding program with specific eligibility, activity, reporting and record-keeping requirements. A well-prepared application and a disciplined approach to managing the grant can make a meaningful difference to an export strategy.
What EMDG is designed to support
EMDG is an Australian Government program administered by Austrade. Its purpose is to encourage Australian small and medium enterprises, and eligible representative bodies, to create, develop, expand and diversify foreign markets for Australian products.
The current program is structured around grant agreements rather than the old-style retrospective reimbursement model. In practical terms, successful applicants agree to undertake eligible export activities over the grant period and must satisfy the conditions of their agreement to receive payments.
The program is intended to help businesses invest in activities that build export capability and generate overseas opportunities. This can include promoting goods, services, events, intellectual property, know-how and software, provided the relevant product meets the program’s Australian origin requirements.
For many businesses, EMDG is most useful where export promotion requires a sustained investment before overseas revenue is established or expanded. That may include researching a market, developing export-specific promotional material, engaging an overseas representative or travelling to meet prospective buyers.
EMDG does not remove the commercial risks of exporting. It is better viewed as a contribution towards a well-considered international growth plan, rather than funding for a speculative idea without a clear route to market.
Understanding the EMDG tiers and who they suit
For small and medium enterprises, EMDG has three main tiers. Selecting the right tier is important because an application is assessed at the tier chosen. An applicant is not automatically moved to another tier if it applies for the wrong one.
Tier 1: businesses ready to export
Tier 1 is aimed at businesses that have not previously exported eligible products but are ready to begin exporting and promoting those products in foreign markets.
For Round 4, applicants needed to meet requirements including:
– holding a valid ABN
– having conducted the business under the same ABN for at least two years
– annual turnover above the applicable minimum and below $20 million
– the capacity to spend at least $20,000 of the business’s own money each financial year on proposed eligible activities, excluding the grant amount
– a high-quality export marketing plan tailored to the business
– tax compliance and fitness to receive a grant.
A business seeking Tier 1 support must also demonstrate export readiness. This may be done through recognised export training, an approved export-readiness assessment, or both, depending on the requirements of the grant round.
Tier 1 can be particularly relevant for an established Australian business that has a proven domestic product or service but needs to build the skills, market knowledge and promotional capability required to sell internationally.
Tier 2: expanding within existing export markets
Tier 2 is designed for businesses that are already exporting and want to expand their marketing and promotional activity in markets where they already have export sales.
For Round 4, applicants needed evidence of recent export sales as well as a valid ABN, sufficient turnover, a tailored marketing plan, tax compliance and capacity to meet the matched-funding commitment.
This tier may suit a business that already has overseas customers but wants to do more in that market. For example, it may be seeking to appoint a local representative, increase targeted promotion, attend buyer meetings or develop market-specific materials.
The focus is not merely continuing business as usual. The proposed activity should demonstrate a genuine expansion of export promotion.
Tier 3: entering new key markets
Tier 3 is intended for exporters that are seeking to diversify into a new key market. For Round 4, a new market was generally one in which the business had not previously made export sales.
This distinction matters. A business may have undertaken early research or exploratory promotion in an economy without making sales, but it must be able to demonstrate a strategic shift and a meaningful expansion of its marketing activity into that new market.
Tier 3 also has its own turnover and market requirements. In Round 4, eligible activity had to target one or more nominated key markets. These settings are grant-round specific, so businesses should check the current guidelines carefully before relying on an earlier round’s list.
Representative bodies
Representative bodies, such as eligible industry associations and similar organisations, may also be able to access EMDG support. Their role is to help small and medium enterprise members build export readiness, marketing capability and foreign-market opportunities.
A representative body must meet separate eligibility conditions. It must be able to demonstrate how its proposed promotional or training activity will support eligible members, and it cannot simply distribute income to members or shareholders.
Eligible products and export activities
The starting point for any EMDG application is the product being promoted. The program covers more than physical goods, but the product must meet the specific conditions that apply to its category and must be of substantially Australian origin.
Eligible product categories include:
– goods
– services
– events
– intellectual property
– know-how
– software.
The detailed conditions vary. For example, goods may qualify where they are Australian primary products, are made from Australian primary products, are manufactured or assembled in Australia through a qualifying process, or meet other Australian-value and employment-related conditions.
For non-tourism services, the rules consider matters such as where the assets and activities used to prepare the service are based and carried out, the Australian value added and employment generated. Tourism services are treated differently because they are supplied in Australia to foreign visitors.
It is also important that the applicant has the right connection to the product. Depending on the product category, this might mean owning the goods, supplying the services, owning or being licensed to promote relevant intellectual property, or holding the required rights in software.
Once the product is eligible, the proposed expenditure must also fit within the permitted activity categories. These can include:
– maintaining a representative in a foreign country for eligible market research or promotional work
– short overseas trips for export promotion
– engaging consultants for foreign-market research or promotion
– certain short trips within Australia to engage prospective foreign buyers
– visits by prospective foreign buyers
– soliciting business in foreign countries
– providing free samples to prospective overseas buyers
– producing and distributing export promotional and advertising material
– registering or extending intellectual property rights in foreign countries
– export training for eligible Tier 1 applicants.
Each category has boundaries. A trip, for instance, needs to have a clear export-promotion purpose and satisfy the conditions of the relevant agreement. Marketing materials need to be directed to foreign-market promotion, rather than broad domestic advertising.
This is why it is wise to assess expenses before committing to them, not after money has been spent.
Expenses that may not qualify
A cost may be commercially sensible but still be ineligible for EMDG. Keeping this distinction clear is essential for budgeting and reporting.
The legislation and program rules exclude a range of expenses. Examples include:
– capital expenditure, apart from the specific treatment of certain foreign intellectual property rights costs
– costs relating to trade with New Zealand
– taxes, levies and similar Australian-law charges, subject to limited exceptions
– sales-related commissions, discounts and payments linked to sales or commercial transactions
– remuneration for employees, directors, partners, trustees and certain related parties in specified categories
– activity that is illegal where it occurs, or would be illegal under Australian law
– expenses already covered by another government financial assistance scheme
– activities or products that may damage Australia’s trade reputation.
An expense may also be excluded to the extent the business has been paid, or is entitled to be paid, for doing the relevant thing. This is particularly relevant when reviewing consultant arrangements, distributor relationships and service agreements.
The practical message is simple: do not assume that an invoice with an “export marketing” description will qualify. The purpose of the expense, who incurred it, who was paid, the market involved and the supporting evidence all matter.
Preparing a stronger application
A strong EMDG application starts well before the application window opens. Funding is limited and applications may be assessed in the order received, so preparation matters.
Your export marketing plan should be specific to your business. It should explain why the selected market is commercially appropriate, how the planned activity supports the export objective and why the proposed costs are necessary.
A useful plan usually addresses:
– the eligible product and the business’s connection to it
– the target foreign market or markets
– customer segments and prospective buyers
– the competitive position of the product
– market-entry barriers, including regulatory, cultural, pricing or distribution issues
– the promotional activities to be undertaken
– expected timing and responsibilities
– a realistic expenditure budget
– how the business will fund its contribution
– measurable objectives, such as buyer meetings, distributor discussions, market validation or qualified leads.
Avoid generic plans that could apply to any business. A broad statement that the business intends to “increase brand awareness overseas” is unlikely to be as persuasive as a plan connecting a defined target market, activity, buyer profile and commercial objective.
Before lodging an application, it is also sensible to review:
– ABN and entity details
– financial statements and turnover evidence
– tax lodgement and payment status
– export sales evidence, where relevant
– ownership or licensing documents for the product or intellectual property
– quotes, agreements or budgets supporting planned expenditure
– evidence of export readiness for Tier 1 applicants.
Managing the grant after approval
Receiving a grant offer is the beginning of the compliance process, not the end. The grant agreement sets out the activities, reporting obligations, payment arrangements and maximum grant amount that apply to the business.
A grant is matched funding. The business must spend the grant money and at least an equivalent amount of its own money on eligible expenses. It must also maintain eligibility and comply with the agreement throughout the grant period.
Milestone reporting is particularly important. Grantees must submit a report for the relevant financial year even where no expenditure has been incurred. Austrade may request additional information or documents to confirm that expenditure is eligible, activities have occurred and agreement conditions have been met.
Good bookkeeping makes this significantly easier. Businesses should consider setting up a clear system for EMDG-related transactions, including:
– a separate account code or tracking category for each grant activity
– copies of invoices, contracts and purchase orders
– proof of payment
– travel itineraries, boarding passes and meeting records where relevant
– consultant scopes of work and deliverables
– copies of advertising, promotional material and campaign reports
– records showing the intended foreign market and the export purpose of each expense
– correspondence supporting buyer meetings, representative activity or market research.
A generic example illustrates the value of this approach. An Australian software business with existing export sales decides to expand promotion in one of its overseas markets. It engages a local consultant, produces market-specific campaign materials and sends senior staff to scheduled buyer meetings.
If the business keeps only invoices, it may struggle to show the export purpose of each activity. If it also keeps the consultant brief, buyer meeting calendar, campaign screenshots, proof of payment and internal approval records, it will be much better placed to prepare a clear milestone report.
Businesses should also factor the grant into their tax and cash-flow planning. Government grants received in connection with carrying on a business are generally assessable income unless a law specifically provides otherwise. The normal tax treatment of the related expenses should also be considered. The correct treatment can depend on the entity, accounting method, timing of entitlement and the particular terms of the grant.
Where the program currently stands
As at 17 September 2026, EMDG Round 4 is closed to new applications. Round 4 grants relate to eligible activities in the 2025–26 and 2026–27 financial years.
For businesses that already hold a Round 4 agreement, the immediate focus should be on meeting activity, evidence and milestone-report obligations. For businesses that missed the round, the best use of time is often to strengthen export readiness, refine the market-entry plan, organise financial records and monitor official announcements for any future grant opportunity.
Program details, including available funding, application windows, eligible markets, grant amounts and required documents, can change between rounds. Do not rely on a previous application or another business’s experience as a complete guide to a future round.
Turning export plans into well-supported action
EMDG can be a valuable source of support for Australian businesses that are ready to make a genuine, well-planned investment in foreign-market development. However, eligibility depends on far more than having overseas ambitions or export-related expenses.
The right tier, an eligible Australian product, a credible marketing plan, matched funding capacity and reliable records all play a part. Early planning can help ensure that export decisions are commercially sound and that any grant opportunity is approached with the evidence needed to support it.
This article is general information only and is not personal financial or tax advice. EMDG eligibility and tax treatment depend on your circumstances and the applicable grant-round requirements. Speak with a registered tax agent or accountant, such as, for advice tailored to your business and export plans.