Preparing for the EMDG Program: Lessons from the 2026 Independent Review and what it means for Round 5
Authors: Joel Spotswood, Dale Prebble
In March 2025 the Federal Government commissioned a statutory review of the popular Export Market Development Grant (EMDG), to assess the effectiveness of the current EMDG program, including the changes introduced in Round 4, and to identify opportunities to improve program delivery, the applicant experience and export outcomes for Australian small and medium-sized enterprises (SMEs). In July 2026,this report, including recommendations for the future of the program was released.
Round 4
Round 4 of the EMDG program which opened in November 2024, marked a significant departure from previous rounds, moving away from a model where all eligible applicants received a share of funding to a first-come, first-served system. While the round offered the prospect of larger, more impactful grants alongside stricter eligibility criteria, including new minimum turnover thresholds, it drew criticism that the first-come-first-served approach introduced uncertainty and administrative burden without guaranteeing a fair distribution of funding. The popularity of the EMDG program was highlighted through this process, with the most popular tier of funding exhausted just 3.5 hours after applications opened; leaving many eligible exporters locked out of support they had previously relied on, or were planning for.
The Review
The review considered the outcomes of Round 4 and the broader effectiveness of the program and concluded that the program remains a highly valuable tool for helping Australian SMEs enter and grow in international markets.
The review's strongest focus is on reforming the application and assessment process. It recommends replacing the current first-in, first-served funding model with a merit-based assessment process, ensuring grants are awarded to businesses with the strongest export capability, highest-quality applications, and greatest potential to deliver export outcomes. The report also recommends simplifying the program structure, improving communication with applicants, reducing administrative burden, and strengthening collaboration across government and industry to maximise export success. Provided below is a summary of the most significant recommendations handed down in the report.
Introduce a merit-based assessment process aligned with EMDG objectives and Australia's trade priorities.
Assess applications using eligibility and merit criteria, including business capability, export readiness, and expected grant impact.
Simplify the program by moving from three business tiers to two:
Export-ready businesses.
Established exporters.
Return to annual grant rounds with annual grant agreements to improve business planning.
Simplify or remove the requirement for detailed Plans to Market.
Review milestone reporting timeframes to provide businesses with a full 12 months of eligible expenditure.
Improve guidance on eligible expenditure, including clearer communication.
Review international travel caps and increase per diem allowances where appropriate.
Overall, the review concludes that the EMDG program remains an important investment in Australia's export sector but recommends a series of practical reforms to improve fairness, accessibility, efficiency, and long-term export outcomes for Australian businesses.
What This Means for Exporters and Round 5
While we are yet to see if the recommendations handed down by the review will be implemented for future rounds, the proposed changes will be an important consideration for businesses planning to apply for future EMDG funding.
Notably, the review did not recommend an increase in the amount of funding available to the EMDG program, despite the popularity of the program and the recognised impact it has on supporting SME exporters. With the EMDG funding allocation in the most recent budget remaining consistent with previous years, SMEs exporting or seeking to start should be aware that a move to a merit-based criteria system would represent a highly competitive application process without guarantee of funding, so quality submissions should be prepared.
Applications for Round 5 are expected to open around November 2026, mirroring the Round 4 timeline. If you need assistance planning and preparing your EMDG application, reach out to your friends at Intellect Labs.