2. Compendium of Priorities and Initiatives (continued)
Foreign Affairs and Trade
Export Market Development Grants scheme
The Export Market Development Grants (EMDG) scheme is a key government financial assistance program for current and aspiring exporters. The scheme, administered by Austrade, aims to encourage small and medium‑sized Australian businesses to develop export markets by reimbursing up to 50 per cent of eligible export promotion expenses above a threshold of $10,000. The scheme is open to eligible Australian businesses who can claim up to a total of eight grants of a maximum of $200,000 each.
Of the total number of EMDG grants paid in 2007‑08 (relating to eligible expenditure incurred in 2006‑07), 23.4 per cent were awarded to recipients from rural and regional Australia, an increase of 5.7 per cent over the previous year. For the same year, 80.4 per cent of all grants were awarded to small businesses with an annual income of $5 million or less.
Consistent with its election commitment, the Government has implemented changes to revitalise the EMDG scheme which will apply to eligible export promotional expenditure incurred from 1 July 2008. Of particular relevance to regional Australia are the changes allowing approved regional not‑for‑profit economic development bodies, including tourism bodies which promote Australian exporters, to access the scheme; cutting the minimum threshold of expenditure by $5,000, to a $10,000 minimum; and replacing the list of eligible services provided in Australia with a negative list, which means all services will be considered eligible unless otherwise specified.
Other changes included increasing the maximum grant by $50,000 to $200,000; allowing as an eligible expense the costs of patenting products; lifting the maximum turnover limit from $30 million to $50 million; and extending the limit on the number of grants from seven to eight annual grants. An additional $50 million has been provided to the scheme for 2009‑10.
TradeStart program
Currently 50 TradeStart offices operate across all states and territories, providing small and medium‑sized companies with access to export assistance wherever they are located in Australia. Funding for the TradeStart network extends to 30 June 2010.
The TradeStart network ensures that businesses in regional and rural Australia have access to services under Austrade's new Getting into Export program. The program is designed to assist eligible Australian businesses to develop the skills required to become successful and sustainable exporters and includes a tailored package of services such as export coaching, advice and information about overseas markets, assistance with market selection and access to a specialist referral network of service providers.
Austrade delivers TradeStart in partnership with local partners such as chambers of commerce, private sector organisations, and state and territory governments. By leveraging Austrade's knowledge of international markets with its partners' local expertise, TradeStart is an effective way of helping companies into export.
Since its establishment in 2002‑03, TradeStart has helped more than 2,266 businesses achieve export success in excess of $1.3 billion.
Further information
Further information about these and other foreign affairs and trade initiatives relating to rural and regional Australia is available at www.austrade.gov.au.
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