ECA

Statement on EMDG budget boost

29.03.2019 Heath Baker

The Export Council of Australia (ECA) welcomes the government’s announcement to increase funding of the Export Market Development Grant (EMDG) scheme.

‘The EMDG is one of the major government policies to help Australian SMEs go global’, said Heath Baker, acting CEO of the ECA. ‘Its objective is to boost the confidence of SMEs so they take the plunge and start exporting. But when businesses don’t know how much of their grant entitlement they will get back, it undermines the scheme’s objective.’

‘Senator Birmingham’s announcement is a great start’, said Mr Baker. ‘A $20 million per year boost means SMEs can spend $40 million on marketing their products or services internationally, leading potentially to a $140 million boost to the Australian economy.'

A 2015 study by KPMG found that for every $1 the government spends on EMDG, the economic benefit to Australia is $7.03.
 
'But unfortunately the boost only goes part of the way to meeting the EMDG’s estimated $67 million funding shortfall. There is a long way to go until the government is giving SME exporters the certainty they need.’

‘We’re now looking for Jason Clare’s response to see how serious he is about helping exporters.’

 

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