What you should know about the EMDG program
With the end of financial year approaching, are you getting the most out of your Export Market Development Grant? Read below as to how our colleagues at Glasshouse Advisory can help.
As a business owner, in the lead up to 30 June, there is often advice from accountants or advisors that you should pay any outstanding bills, or even prepay certain expenses before the end of financial year, in order to maximise your tax deductions. From an Export Market Development Grant (EMDG) perspective, this is good advice as leaving bills unpaid can have a significant adverse impact on the size of your claim.
Each grant year, one of the most common mistakes we see that leads to reduced claims is leaving eligible costs unpaid at the end of the financial year. Many clients aren’t aware that eligibility for EMDG costs runs on a cash basis so expenses paid after the end of the final year (EOFY) won’t be claimable even though they may have been incurred in the claim year. The result is a delay in the ability to claim these unpaid costs which have to be held over to the next grant year. As the EMDG program runs on a cash basis, you will receive a 50c refund on each dollar that your business has paid by 30 June each year.
- For example, in order to maximise your claim for the 2017 EMDG grant year, if you have:
- Staff reimbursements, PAY THEM
- A conference coming up that you haven’t registered for, BOOK IT
- International flights to book, DO IT
Still don’t have the time? That’s okay, we get it! Our Glasshouse Advisory EMDG consultants would be happy to visit your business twice a year, or as required, to assist in collation of the required information to put your business ahead of the queue come lodgement time. Interested to know more about Glasshouse Advisory’s EMDG services? Contact us to discuss the best steps for your business this lodgement season.
This article first appeared on Glasshouse Advisory’s website on 24 May 2017
Director, Innovation Incentives & IP Economics