Certain proposed changes to the EMDG Act will make good reading to many exporters, including those exporters that are starting the export journey and who may not have had the financial resources to commit and meet the current threshold limits.
It would appear that the changes are applicable to expenditure spent during the 2013/14 which will be paid out for applications lodged from 1 July 2014.
These changes include:
- Increasing the number of grants able to be received by an applicant from seven to eight;
- Reducing the minimum expenses threshold required to be incurred by an applicant from $20,000 to $15,000; and
- Reducing the current $5,000 deduction from the applicant’s provisional grant amount to $2,500.
For a first time applicant, that means that they will have to incur $15,000 worth of eligible expenditure during the period from 1 July 2012 to 30 June 2014, for which they will then receive a $5,000 grant.
One of the other proposed changes, is that applicants who receive a grant that is higher than the first tranche payment (this year it was $60,000) will no longer have to wait to the last week of June to receive the balance of their grant. The Minister will be able to determine the timing of the second payment once Austrade has determined what their full payout figure for the grant applications will be.
If you want to know how this may impact your application, please do not hesitate to give us a call.