EMDG Tier 1 Deep Dive: For Australian Businesses Getting Ready to Export
EMDG Tier 1 Deep Dive: For Australian Businesses Getting Ready to Export
EMDG Tier 1 is designed for Australian businesses that are ready to start exporting but haven't yet built sustained overseas revenue. With Round 4 closed and Round 5 expected around mid-2027, this is the window to understand what Tier 1 actually requires — and to build the foundations that make a future application competitive. Here's a deep dive on what KP Retail has seen work.
What Tier 1 is and what it offered in Round 4
Tier 1 of the Export Market Development Grant is the entry tier — designed for businesses ready to export but without an established overseas customer base. In Round 4, Tier 1 offered grants from $20,000 up to $30,000 per financial year, across two-year agreements covering 2025–26 and 2026–27. Applicants needed the capacity to spend at least $20,000 of their own money per financial year (exclusive of the grant) on eligible marketing and promotional activity.
The exact structure of Round 5 hasn't been confirmed, but the broad shape of Tier 1 — a meaningful but capped grant for export-ready businesses, with matched spend required — is structurally durable. Preparing against the Round 4 specifications is a reasonable approximation.
Eligibility checks Tier 1 applicants need to clear
Australian business registered for GST and meeting the program's eligibility tests. Australian product or service genuinely capable of being exported. Capacity to spend at least $20,000 per year of your own funds on eligible export-marketing activity. Completion of either Austrade-recognised export training or the Austrade Export Readiness Test before applying.
A high-quality plan to market that is specific to your business — not copied from another business, not pulled from a generic template, and not lifted from a previous EMDG application. Austrade specifically flagged this requirement in Round 4, and assessors do check.
Where Tier 1 applicants commonly fall short
Weak or generic export plans. The Tier 1 plan is your story to Austrade about why this business is genuinely ready to export, where you're going, and how you'll spend the matched funds. Plans that read like marketing collateral rather than operational documents tend to be marked down.
Insufficient evidence of export readiness. Have you completed the export training? Do you understand the regulatory requirements in your target market? Have you done basic market research? Have you talked to potential customers or distributors? Tier 1 doesn't require sales already — but it does require evidence the business has done its homework.
Unclear matched spend capacity. The $20,000 minimum self-funded spend isn't theoretical. Applicants need to demonstrate the business actually has the cash to deliver on the plan. A business that's marginal on cash flow may not pass this hurdle even if the export idea is sound.
Founder tips for the Tier 1 preparation window
Complete the Export Readiness Test now. It's free and it gives you a current baseline of where your business sits. Even if you don't apply for EMDG, the test surfaces gaps worth addressing.
Pick your target markets deliberately. Tier 1 applications that name three or four markets with thin reasoning tend to read as scattered. Applications that pick one or two markets with a clear rationale tend to read as focused. Focused wins.
Start spending eligibly now. EMDG reimburses eligible past spend. Money you spend on overseas marketing in 2026 against a sound plan can support a Round 5 application that gets you back into reimbursement for 2027–28 and beyond. Don't sit on your hands waiting for the program to open.
Where KP Retail fits in
We work with Tier 1 candidates on three things specifically: building a credible export plan that meets the 'specific to your business' standard, mapping eligible spend in advance so the documentation flows from real activity rather than scrambling at submission, and helping founders honestly assess whether Tier 1 is the right starting point or whether the business needs to grow into export readiness first.
The Tier 1 preparation phase is also where we tend to surface adjacent opportunities — state-based export programs, industry development support, capability initiatives — that can supplement EMDG and reduce the risk of putting all the export-funding weight on one program.
EMDG Tier 1 is one of the better-designed entry points for Australian businesses starting their export journey, but it rewards genuine readiness over enthusiasm. If your business is preparing for international markets, KP Retail can help you build the foundations now so you're a credible Round 5 applicant when the time comes. Get in touch to map out where you sit.
Related reading: For a broader overview of the EMDG program before diving into Tier 1 specifics, see our guide on what the EMDG actually covers. If Round 4 has closed and you're planning ahead, see what to do now to be ready for Round 5. You can also visit our dedicated EMDG program page or contact KP Retail to discuss your export marketing activities.
