How Government Aid Can Help Exporters
The Australian marketplace is one of the most stable in the world and with the recent expansion to the economic industry, people from around the world are flocking to the country in an effort to cash in on the potential. Unlike many other governments that focus on drawing in business from the global community – Australia has implemented a new option for its residents; especially those that manage and operate businesses within the country.
What is this new option?
Any company that exports its goods and products to international locations may often find the expense of shipping to be quite a barrier. This is why the government recently introduced the EMDG, or the Export Market Development Grants Scheme.
How does the EMDG work?
This scheme is funded by the government and is administered by Austrade – the national body for the management of internal assets with an external destination. Any business that offers exportation services of goods or products can apply for the grant and once approved, the additional funds can be used to lower the associated costs of exporting abroad.
Who is the grant for?
Although anyone can apply and have their application processed for acceptance or rejection, the grant itself is tailored to small and medium sized businesses based within Australia. The grant can be used to cover expenses associated with exportation, as well as being usable for the development of facilities and assets.
How government aid can help exporters
Beyond the initial financial investment, the aid can help by allowing a company to develop a long term exportation service that can continue to last well into the future. In order to be eligible an applicant must have a good (or goods) manufactured in Australia, offer a tourism service (especially one aimed at accommodation and passenger transportation) and either have a trademark, or one in progress.
In the case of product development, a business may identify a key market outside of Australia and in these cases, they may want to export their product/s to a wider audience. The cost of an international trademark can be a hefty expense in and of itself – and this is something that the grant is often used for.
By covering this initial cost, the only additional expenses can relate to the exportation process itself. In some cases, a higher grade of the grant can be applied for – particularly when a smaller business is applying, or when a newly incorporated organisation is hoping to offer its services on an international level.
Exporting goods can be one of the most expensive methods of business and with this government aid, the entire process can be lessened without a company needing to invest tens of thousands of dollars into the activity. Once set up, the aid can go on to help the company maintain its exportation features – with an extension to the grant if a candidate is applicable.