Government Incentives

Financial incentives used by the government to encourage and stimulate businesses to export Australian products.

Government aims to increase exports because:

  • They generate an injection into the Aus economy, therefore increasing its wealth.

  • The more successful the domestic business, the more income and sales tax received.


Tax Concessions

A reduction in a monetary levy/burden payable by the business to the government.

Tax concessions are given by the Australian Taxation Office on businesses that export.

Duty Drawback Scheme

Allows businesses to obtain a refund on customs duty paid on imported goods that are used in exported products/services.

Australian R&D tax incentive

Provides eligible companies with a tax reduction for expenditure on eligible research and development activities undertaken during the year.

It is administered by the Australian Taxation Office (ATO) and by AusIndustry.

The R&D tax incentive aims to increase the competitiveness of Aus businesses in a global environment by encouraging the conduction of research and development.

Tradex Scheme

Provides an upfront exemption from Customs duty and GST for goods imported to Australia that are then exported within one year.

This provides a cash-flow benefit to the importer.


Grants

Financial assistance provided by home governments to encourage export development.

Export Market Development Grants (EMDG)

Financial assistance program for exporters, administered by Austrade.

Encourages small and medium sized Aus businesses to develop export markets by:

  • Reimbursing up to 50% of eligible export promotion expenses above $5,000, provided that total expenses are at least $15,000.

  • Provides up to 8 grants of up to $150,000 per application.

Export Finance and Insurance Corporation (EFIC)

The government’s export credit agency, which provides finance and insurance support to assist Australian exporters in overcoming financial barriers when expanding their business overseas.

EFIC works directly with exporters and their banks to provide loans, guarantees, bonds and insurance products that can be tailored to meet the needs of the exporter.


Provision of Services

Austrade (Australian Trade and Investment Commission)

A government agency that assists global expansion by:

  • Providing info about international markets and trends

  • Arranging meetings with potential clients and partners

  • Providing ongoing support such as information and advice to assist Aus businesses to reduce time, cost and risk associated with exporting.

Department of Foreign Affairs (DFA)

A government agency that assists business global expansion by providing info about international markets.