Quick answer
Austrade's Export Market Development Grants help Australian SMEs with export marketing and promotion, but grants are paid against eligible expenses you've already incurred, after milestone reports are assessed. You must also match the grant dollar for dollar, spending at least double the grant amount on eligible expenses. That means the marketing has to be funded first — from cash flow, a line of credit or another facility.
Key points
- EMDG pays milestone payments against eligible expenses already incurred — you spend first.
- Austrade requires the grant to be matched dollar for dollar: eligible spending of double the grant amount.
- The program has tiers for SMEs ready to export, exporting within existing markets, and entering new key markets.
- Grant rounds close once funding is allocated; check Austrade for whether a round is open.
How does the EMDG work?
The Export Market Development Grants program is Austrade’s main grant for exporters. It supports marketing and promotional activities that grow exports — the trade shows, overseas trips, market research, promotional material and representation that help you find and win buyers.
Austrade describes tiers for:
- Tier 1 — small and medium enterprises ready to export (including export training).
- Tier 2 — SMEs exporting within existing markets.
- Tier 3 — SMEs exporting to new key markets.
- Representative bodies supporting SMEs in their industry.
Austrade also sets out time limits per tier — two years for Tier 1 and four years each for Tiers 2 and 3 — with businesses able to receive EMDG grants for up to eight financial years. Its program changes also list a minimum of two years in business with the same ABN, and the capacity to spend at least $20,000 on marketing and promotional activities.
Why does the EMDG create a cash-flow gap?
Two features of the program mean you need the money before the grant arrives:
- You spend first. Austrade makes milestone payments after assessing milestone reports, and only for eligible expenses. The grant reimburses what you’ve already paid.
- You match the grant. Austrade states you must match the dollar value of the grant — showing spending on eligible expenses of double your grant amount.
So if your grant is $30,000 for a year (illustrative), you need at least $60,000 of eligible spending in that year, paid from your own resources, before the $30,000 arrives. On top of that, the export orders the marketing generates will need their own working capital.
| Step | Cash position |
|---|---|
| Grant agreement signed | No money yet |
| Marketing activity through the year | Cash out — trade shows, travel, promotion |
| Milestone report lodged | Still out of pocket |
| Report assessed, payment made | Grant arrives |
| New buyers place orders | New working-capital need for production and terms |
How do exporters fund the gap?
Most use general business facilities rather than anything grant-specific:
- A line of credit drawn as marketing costs fall due, then reduced when the milestone payment arrives. This is usually the neatest fit because the spending is spread through the year.
- A working-capital loan for a concentrated push — a major trade show and follow-up visits in one quarter, for instance.
- Property-secured funding where the marketing push is part of a bigger expansion.
Unsecured and line-of-credit options for trading businesses typically run from $5,000 to $500,000, sized on turnover and bank statements. If you’re planning an export marketing year and want to know what’s realistic, send a short enquiry — no credit check to ask.
What should I plan for beyond the grant?
The point of export marketing is orders. When they come, they bring their own funding needs: pre-shipment finance to produce the goods and export working capital to wait out the buyer’s terms. It’s worth planning a facility that can flex from marketing spend to production and receivables, rather than arranging something new at each stage.
Is an EMDG round open?
Rounds open and close. Austrade’s page currently says Round 4 is closed and there are no grant rounds open to applications, and that grants are offered in the order applications are received until funding is fully allocated. That’s a good reason not to build your whole export plan around a grant — treat it as a welcome reimbursement if you’re eligible and successful, not as the funding itself. Check Austrade’s EMDG pages for the current position and guidelines.
How do I keep records that stand up?
Milestone reports rely on evidence that expenses were incurred and are eligible. Practical habits:
- keep a separate cost code for export marketing so it’s easy to report
- store invoices and proof of payment together, month by month
- record the market and purpose of each activity as you go
- reconcile the marketing budget against actual spend each quarter
Good records also help when you talk to a lender, because they show a planned, measured approach to export growth.
Illustrative example
Illustrative only. A specialty tea blender plans a year of export marketing: two overseas trade fairs, a distributor visit trip and translated promotional material, totalling about $70,000. It expects a grant payment after the year’s milestone report, but has to fund the full spend first. A line of credit is drawn as each cost falls due, peaking just after the second trade fair. When orders from a new distributor arrive, the same facility funds the first production run, and the grant payment later reduces the balance.
What if the grant is smaller or later than expected?
Plan as if it might be. Milestone reports are assessed in the order they’re received, and grant amounts depend on eligible expenses and the program’s rules. If your export marketing only makes sense with the full grant arriving on a particular date, the plan is too tight. Build a budget that the business can carry with the grant treated as a bonus that reduces debt when it lands. It’s also worth checking the latest guidelines with Austrade, or through a reputable EMDG consultant, before committing to large spending on the assumption of reimbursement. Our guide to getting paid by overseas customers covers what comes next, once the marketing starts turning into orders.
Plan the spend with the funding in place
If export marketing is on your plan and you’d like the cash side sorted first, start a Trade Loan enquiry. Asking doesn’t involve a credit check, and your details aren’t distributed to a stack of lenders. A real person calls you to understand the plan, the timing and the business behind it. Please be accurate about turnover and your marketing budget so we can suggest a sensible structure straight away.
Frequently asked questions
What is the EMDG?
The Export Market Development Grants program, run by Austrade, supports Australian small and medium enterprises with marketing and promotional activities that increase exports. It has tiers for businesses ready to export, those exporting within existing markets, and those expanding to new key markets.
Do I get the EMDG money before I spend it?
No. Austrade makes milestone payments after assessing milestone reports, and only for eligible expenses. You incur the expenses first and are reimbursed later, which is why cash flow planning matters.
How much do I have to spend to get the grant?
Austrade says you must match the dollar value of the grant, showing eligible spending of double your grant amount. The program's eligibility also refers to having the capacity to spend at least $20,000 on marketing and promotional activities.
Is an EMDG round open now?
Austrade's EMDG page states that Round 4 is closed and, at the time of writing, no grant rounds are open to applications. Check Austrade's site for current status before planning around a grant.
Can I borrow against an expected EMDG payment?
Lenders generally look at the business as a whole rather than an expected grant. A line of credit or working-capital facility sized on turnover can fund the marketing spend, with the grant payment then used to reduce the balance.