Government Funds and Grants
There are a number of government funding and grants available to assist Australian start-ups and emerging businesses. Make sure you invest in researching, preparing and pursuing grants suitable for your business before rushing off to file an application to meet the deadline.
Here we introduce some popular government grants.
R&D TAX INCENTIVE
The R&D Tax Incentive provides a targeted tax offset to encourage more companies to engage in research and development (R&D).
It has two core components, namely:
- 45 per cent refundable tax offset for eligible entities with a turnover of less than $20 million per annum, provided they are not controlled by income tax exempt entities.
- a non-refundable 40 per cent tax offset for all other eligible entities. Unused non-refundable offset amounts may be able to be carried forward to future income years.
The R&D Tax Incentive is jointly administered by AusIndustry and the Australian Taxation Office (ATO). For more information, download R&D Tax Incentive Information Guide published by AusIndustry.
Accelerating Commercialisation offers eligible small and medium businesses, entrepreneurs, and researchers access to Commercialisation Advisers with experience and connections to address the challenges associated with commercialising novel products, processes and services. Accelerating Commercialisation also offers grants of up to 50 per cent of eligible project expenditure to assist in the commercialisation of novel products, processes and services for a maximum project period of two years. The maximum grant amount is $250,000 for Commercialisation Offices and Eligible Partner Entities, and $1 million for all other applicants. Accelerating commercialisation program is delivered by AusIndustry. For more information, download Accelerating Commercialisation Guide published by the Department of Industry.
BUSINESS GROWTH FUND
For those who have received one of the AusIndustry’s Entrepreneurs’ Programs, Business Growth Grant funding provides selected businesses with reimbursement of up to half the cost of engaging a consultant to make improvements to the business, to a maximum of $20,000 (excluding GST). For more information, download Business Growth Grants Guide published by the Department of Industry.
EXPORT MARKET DEVELOPMENT GRANT
The Export Market Development Grants (EMDG) scheme is a federal government’s financial assistance program for exporters. It supports a broad range of industries including inbound tourism and the export of intellectual property. This program reimburses the eligible businesses up to 50% of export promotion expenses above $5,000 provided that the total expenses are at least $15,000, up to eight grants. For more information, download Guide to Applying for EMDG published by Austrade.
OTHER GOVERNMENT INCENTIVES
There are a range of Australian federal, state or even council level of incentive programs. You can use the Government’s grant finder by clicking here. The Department of Industry’s single Business Service provides information and a comprehensive database on the program available.