The population of Australia is small compared to our geographic area, so the government encourages businesses to explore emerging markets across the world for exports. Grants are provided by the government to its exporters to increase their productivity and sales. Here is a list of some of the programs initiated by the government of Australia to help small and medium sized businesses in tapping the potential of emerging markets around the globe.
Export Market Development Grants
Export Market Development Grant (EMDG) is the flagship program of the government of Australia through which financial assistance is provided to small and medium sized businesses in various industries. EMDG is operated by Austrade and under this scheme; financial assistance to reimburse up to 50% of the capital expenditure under export promotion is given to eligible entities.
- Your business income should not be more than $50 million in the grant
- The business must be involved with export of goods or services or involved with in bound tourism
- The total expense on export promotion activities must be at least $15,000 in a year. New applicants can combine expenses of two years to reach this target.
Grants under EMDG are given throughout the year though the year starts from July and ends in June.
International Freight Assistance Mechanism
The International Freight Assistance Mechanism (IFAM) is an initiative of the government of Australia to keep air routes open in response to businesses suffering from Covid-19 pandemic. Funding under IFAM helps exporters and importers by keeping supply chains open and ensures operations of flights in and out of Australia. The program was started in April 2020 with an initial fund of $110 million. $241.9 million were pumped in July 2020 and the government injected another $317.1 million in October 2020 to keep the program going till the middle of 2021.
With restrictions imposed on inbound and outbound flights because of Covid-19 pandemic, it is the IAFM program that has prevented the collapse of majority of experts in the fields of food, agriculture, and seafood. However, IAFM support is not limited to seafood and agriculture. You can get this support for the product or service you are exporting if it is high value and reliant on air freight.
Export Finance Australia
Export Finance Australia is an export credit agency of the government of Australia. Its main aim is to help businesses through financing solutions so that they can grow and export more. EFA has wide ranging solutions for businesses interested in exports from loans and bonds to guarantees and financial assistance for large projects. It becomes easy for businesses to explore export related opportunities with the help of solutions provided by Export Finance Australia. Eligible entities can receive support from Export Finance Australia in the form of the following.
- Support for working capital against international orders
- Financial support for purchase of capital equipment to expand export related operations
- Help in taking your business to international markets
- Help to establish your business on ecommerce platforms
- Your business must have ABN
- It must be trading for at least 2 years
- Annual turnover of business must be more than $250,000
- You can demonstrate export potential
Please contact one of our advisors at the number mentioned below to know more about export related assistance schemes.