Export Market Development Grant (EMDG) – Round 5 Guide

The Export Market Development Grant (EMDG) is the Australian Government’s flagship financial assistance program for exporters. Administered by Austrade, the EMDG reimburses up to 50% of eligible export promotion expenses – helping Australian businesses break into new international markets or expand their existing overseas presence.

For innovative companies already claiming the R&D Tax Incentive, the EMDG represents a powerful second lever of government support. Where the R&D Tax Incentive funds the development of new products and technologies, the EMDG funds the marketing effort required to take those products global. Together, they form a comprehensive incentive pathway from innovation to international revenue.

Prime Partners advises on both programs. This guide covers everything you need to know about the EMDG – including how to position your business for Round 5 before it opens.

What Is the Export Market Development Grant?

The EMDG provides matched funding to eligible Australian businesses that spend money promoting their products or services in overseas markets. The grant reimburses 50% of eligible export marketing expenses above a $5,000 threshold, up to annual and lifetime caps that vary by applicant tier.

The program has operated in various forms since 1974, making it one of Australia’s longest-running business support programs. It was significantly restructured in 2021-22, moving from an annual reimbursement model to a multi-year grant agreement model with three applicant tiers based on export readiness and business maturity.

Key features of the current EMDG:

• 50% reimbursement of eligible export promotion expenses above a $5,000 minimum spend
• Multi-year agreements covering two financial years per round
• Three tiers based on turnover and export experience, with increasing grant caps
• Competitive allocation – applications are assessed and ranked, not automatically approved
• $770,000 lifetime cap across a maximum of 8 grant years

Round 4 Recap – Lessons From the Latest Round

EMDG Round 4, which opened in mid-2024 and closed in December 2024, provides the most current picture of how the program operates and how competitive it has become.

The most striking takeaway from Round 4 was the speed at which Tier 2 filled. This tier – aimed at established exporters with turnover between $2 million and $20 million – was massively oversubscribed. Businesses that were not ready to submit on opening day missed out entirely.

The average grant value also increased significantly from earlier rounds (up from approximately $24,000), reflecting the shift to multi-year agreements and higher per-tier caps. This makes the EMDG more valuable than ever for those who secure a place – but the competition for limited places makes preparation critical.

EMDG Round 5 – What We Know

As of April 2026, Round 5 of the EMDG has not yet been announced. Based on the program’s biennial cycle and the timeline of previous rounds, Round 5 is expected to open in mid-2027, covering the 2027-28 and 2028-29 financial years.

A statutory review of the EMDG program, led by Timothy Yeend, was due to report by March 2026. The findings of this review may influence the parameters of Round 5 – including funding allocation, tier thresholds, eligible expense categories and assessment criteria. Any changes will likely be announced in the 2026-27 or 2027-28 Federal Budget.

What Could Change

• Tier thresholds may be adjusted based on Round 3 and 4 demand patterns
• Digital marketing expenses may receive expanded recognition as online export marketing grows
• Assessment criteria may shift to prioritise sectors aligned with government trade priorities
• Total funding pool could increase or decrease depending on Budget priorities

Regardless of the specific Round 5 parameters, one thing is clear: businesses that start preparing now – tracking expenses, developing marketing plans and ensuring compliance – will have a significant advantage when applications open.

Eligibility Criteria

The EMDG has both universal eligibility requirements and tier-specific criteria. Understanding which tier your business fits determines your maximum grant amount and application pathway.

Universal Requirements

All EMDG applicants must meet the following baseline criteria:

• Australian Business Number (ABN) active for at least 2 years at the time of application
• Annual turnover between $100,000 and $20 million (based on the most recent financial year)
• Tax compliance – all ATO obligations up to date, including lodgement of BAS, income tax returns and payment of any outstanding liabilities
• Australian origin products or services – what you are exporting must be substantially of Australian origin, manufactured, produced or developed in Australia
• Export marketing plan – a genuine, documented plan for promoting your products or services in one or more overseas markets
• Not receiving other government export grants for the same expenses

Tier Structure

Lifetime cap: Across all EMDG rounds, a business can receive a maximum of $770,000 in total grant funding over 8 grant years. This means established exporters can potentially access the program across multiple rounds – but each round is competitive and success is never guaranteed.

Eligible Export Marketing Expenses

The EMDG covers a broad range of expenses directly related to promoting Australian products and services in overseas markets. All expenses must be above a $5,000 minimum spend threshold and must have been incurred during the grant agreement period.

Important: Domestic marketing expenses are not eligible, even if your Australian marketing incidentally reaches international audiences. Expenses must be clearly attributable to promoting products or services in specific overseas markets. Keeping separate records for domestic and international marketing activity is essential.

Grant Amounts and Funding Model

The EMDG operates on a 50% matched funding model. For every dollar of eligible export marketing expenditure above the $5,000 threshold, the government reimburses 50 cents – up to your tier’s annual cap.

How the Maths Works

Consider a Tier 2 applicant (established exporter, turnover $2M-$20M) who spends $120,000 on eligible export marketing in a financial year:

• Eligible spend: $120,000
• Less $5,000 threshold: $115,000
• 50% reimbursement: $57,500
• Tier 2 annual cap: $50,000
• Grant received: $50,000

Over a two-year agreement period, this business could receive up to $100,000 – provided they spend at least $105,000 on eligible expenses in each year.

Lifetime Entitlement

EMDG and the R&D Tax Incentive – A Combined Strategy

For innovative Australian businesses, the EMDG and the R&D Tax Incentive are complementary programs that fund different stages of the commercialisation journey. Understanding how they interact is critical to maximising your total government support.

The Core Rule: No Double-Dipping

You can claim both the EMDG and the R&D Tax Incentive in the same financial year – but not on the same expenses. If you claim a cost under the R&D Tax Incentive, it cannot also be claimed under the EMDG, and vice versa. This is a strict requirement that Austrade and AusIndustry both enforce.

The Smart Separation

The most effective approach is to clearly separate your innovation expenditure from your export marketing expenditure:

Prime Partners advantage: As chartered accountants who advise on both the R&D Tax Incentive and the EMDG, we help clients structure their expenditure to capture the maximum benefit from both programs without overlap. This dual expertise is uncommon – most R&D tax consultants do not handle EMDG claims, and most EMDG agents do not understand R&D tax law.

How to Prepare for Round 5 Now

The businesses that succeed in EMDG rounds are those that prepare well before applications open. With Round 5 expected in mid-2027, the 12-18 months ahead represent a critical preparation window.

1. Start Tracking Export Marketing Expenses Immediately

Set up a dedicated cost centre or account code for international marketing expenditure. Separate domestic and international marketing costs clearly in your accounting system. Keep invoices, receipts and contracts that specifically reference overseas markets or international audiences.

2. Develop a Genuine Export Marketing Plan

Austrade assessors can identify a generic or templated marketing plan instantly. Your plan should identify specific target markets, outline your competitive positioning in each market, detail planned marketing activities and set measurable export revenue targets. The plan should be a living document that reflects genuine strategic thinking – not a compliance exercise created the week before you apply.

3. Ensure Your ABN Has Been Active for 2+ Years

If your business is relatively new, confirm your ABN registration date. Businesses with an ABN active for less than 2 years at the time of application are ineligible. If you are approaching the threshold, plan your application timing accordingly.

4. Get Your Tax Affairs in Order

Austrade will verify your ATO compliance status. Outstanding BAS, income tax returns or tax debts can disqualify an otherwise strong application. Address any compliance gaps now – not when the round opens.

5. Consider Professional Assistance

In Round 4, 62% of applications were lodged by registered EMDG agents or consultants. This is not surprising – the application process is detailed, the competitive environment is intense and experienced agents understand how to present activities and expenses in a way that satisfies Austrade’s assessment criteria.

6. Separate Domestic and International Marketing Records

This is where many businesses fall down. If your Google Ads campaigns target both Australian and international audiences, you need to be able to isolate the international component. If your website serves both markets, the EMDG-eligible portion relates only to international-specific pages, content or features. Clean record-keeping from the outset prevents headaches at application time.

7. Understand Your Tier and Optimise Accordingly

Review the tier structure and determine where your business fits. If you are close to a tier boundary, consider whether your turnover trajectory will move you into a higher tier by the time Round 5 opens. Each tier has different caps and competition levels – understanding your position helps you plan spending to maximise the grant outcome.

Common EMDG Mistakes to Avoid

Based on patterns from previous rounds, these are the most frequent errors that reduce or eliminate EMDG claims:

Under-Claiming Eligible Expenses

Many businesses do not realise the full range of eligible expense categories. Digital marketing, IP protection costs, consultant fees and even bringing overseas buyers to Australia can all be claimed. A thorough review of the 10 expense categories against your actual spending often uncovers claimable costs that were overlooked.

Poor Documentation

Austrade requires evidence that expenses were incurred and that they relate to export marketing activities. Invoices that simply say “marketing services” without specifying the international component are problematic. Obtain invoices and contracts that clearly reference the overseas market or international purpose of the work.

Related-Party Transactions

Payments to related parties (directors, associated entities, family members) face heightened scrutiny. These are not automatically excluded, but you must demonstrate that the fees are at arm’s length – meaning they reflect what you would pay an independent provider for the same service.

Wrong Tier Selection

Applying in the wrong tier wastes your application and can result in rejection. Carefully review the turnover thresholds and export experience requirements for each tier. If you are unsure, seek professional advice before submitting.

Generic Marketing Plans

The export marketing plan is a critical component of your application. Plans that are vague, lack specific market targets or read as though they were generated from a template score poorly in assessment. Austrade assessors want to see evidence of genuine market analysis, realistic export targets and a coherent strategy for entering or expanding in specific overseas markets.

Mixing Domestic and International Expenses

If you cannot clearly separate domestic and international marketing costs, Austrade may disallow the entire expense category. Use separate campaigns, separate budget lines and separate invoicing wherever possible.

The EMDG Application Process

While the exact process for Round 5 has not been confirmed, previous rounds have followed a consistent structure:

1. Round announcement – Austrade publishes the program guidelines, opening dates and any changes from previous rounds
2. Application preparation – Compile export marketing plan, financial statements, expense documentation and supporting evidence
3. Online submission – Applications are lodged through the Austrade portal during the open period
4. Assessment – Austrade assesses applications against published criteria and ranks them competitively
5. Grant agreement – Successful applicants receive a grant agreement covering the two-year period
6. Milestone reporting – During the agreement period, you must report on expenditure and export activities at specified milestones
7. Payment – Grant payments are made in arrears after Austrade verifies expenditure against the agreement

The competitive nature of the program means that meeting the minimum eligibility criteria is not sufficient. Applications are ranked, and only the highest-scoring applications receive funding. This is why professional preparation makes such a difference – understanding how assessors evaluate applications helps you present the strongest possible case.

Frequently Asked Questions

Position Your Business for EMDG Success

Already exporting or planning to? Prime Partners helps innovative Australian businesses maximise government incentive programs – from R&D Tax Incentive claims to EMDG applications. Our chartered accountants understand both programs and can build a grant strategy that captures every dollar you are entitled to.

Whether you need help identifying eligible expenses, developing your export marketing plan, or coordinating EMDG with your R&D Tax Incentive claim, our team is ready to assist.

Phone: 02 8378 2421
Email: Contact us online
Office: North Sydney | Orange, NSW

Discuss Your Export Grant Strategy   R&D Tax Incentive Advisory

About Prime Innovation

Prime Innovation is the R&D Tax Incentive advisory division of Prime Partners Chartered Accountants. We provide fixed fee R&D claim support – no contingency fees, no percentage of your refund. Our chartered accountants prepare defensible claims that withstand ATO and AusIndustry review.

Back to R&D Tax Incentive Advisory | R&D Tax Calculator | Contact Prime Innovation