The Morrison Government is backing Australian businesses to grow their exports and create jobs through reforms to the Export Market Development Grants (EMDG) scheme, after an independent review of financial assistance for small and medium enterprise exporters.
The EMDG scheme is a key Government financial assistance program to help aspiring and current exporters increase their marketing and promotional activities in international markets.
Last year alone over 4000 Small and Medium Enterprises accessed the EMDG scheme, employing almost 69,000 Australians and generating exports worth $3.7 billion.
Tony Pasin said exports were a vital part of the local Barker economy.
“By better assisting our local exporters to enter new markets or expand their presence in existing markets we’re boosting export activity and supporting Australia’s economic recovery from COVID-19.” Mr Pasin said.
“COVID-19 has presented new hurdles for Australian exporters including the disruption to supply chains and loss of markets, and it is more important than ever that they have the support mechanisms in place to help them their reach their export potential.
“Maximising support to Aussie businesses as they look to go global or expand their overseas footprint will be vital to continue growing the number of Australian exporters and the total value of Australian exports into the future which will help create more jobs.”
In October last year, the Government commissioned the independent review into the administration of the EMDG scheme.
The Government accepted in-principle all ten recommendations from the review which centred on cutting red tape, increasing awareness of the scheme and giving exporters more funding certainty.
The review found many businesses were overwhelmingly positive about the EMDG scheme, however it also found that the current reimbursement model provided a lack of funding certainty and that administrative processes were too complex.
“By shifting away from a reimbursement model to a grants scheme, eligible exporters will now receive funding closer to when they incur costs, giving more confidence that EMDG funding will genuinely boost their international marketing and promotional activities,” Mr Pasin said.
“At the same time, simplifying application processes and reducing the administrative burden on exporters whilst still maintaining integrity in the scheme will allow recipients to focus on boosting export activities and ensure maximum return on taxpayer’s investment.
“This is great news for Barker’s export industries,” Mr Pasin said.
Legislation to give effect to these changes to the EMDG scheme is scheduled for introduction into Parliament this year.
The new scheme is intended to commence on 1 July 2021 once the new legislation has passed Parliament and associated rules are in place. Consultations on scheme design and program rules will occur prior to changes coming into effect. For further information, including the Reviewer’s report, go to: www.austrade.gov.au/Australian/Export/Export-Grants
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