What if you had the financial backing to invest more into your business? What would you do with it?
We’ve been looking into government grants for you because we get excited thinking about that for our clients too. The government wants to encourage businesses to invest in areas that will grow their business, create new IP through research and development, and to grow export markets. Our services are often eligible for grants in these four areas.
- Entrepreneurs Programme Grant
- Export Market Development Grant
- Research and Development Tax Incentive
- Minimum Viable Product Grant
Here are four grants you can potentially apply for, we’ve developed alliances with advisory organisations to ensure you’ve got the best chance of receiving your grant. Some of them will give you 20k and others will give you nearly 50% back on eligible expenditure. If you are interested, please let us know.
1. Entrepreneurs Programme Grant
This is the Australian Government’s key initiative to support business and industry competitiveness. Within the Business Management scheme there are three targeted programmes for improvement. Each programme provides free independent advice for business growth, as well as access to a $20,000 Business Growth Grant in matched funds in order to implement the recommendations. The three programmes are Business Evaluation, Supply Chain Facilitation, and Growth Services.
In the Business Evaluation scheme an experienced business adviser will review your operations, including your direction and strategy. They will then provide you with an evaluation report that includes business improvement suggestions. Once you are prepared to implement the strategies and suggestions, the adviser will then coach and mentor your for up to twelve months. If you are eligible for this programme you are also able to apply for a Business Growth Grant.
If you would like to find out more, you can read about it here.
Supply Chain Facilitation
Supply Chain Facilitation provides your business with further project opportunities, as well as advising you on practical ways to connect with existing and new markets. A business adviser will work with your suppliers and customers to strengthen your supply chain and improve your access to new markets. If you are eligible for this programme you are also able to apply for a Business Growth Grant.
If you would like to find out more, you can read about it here.
The Growth Services programme will enable you to identify and capitalise on growth areas in your business more swiftly and with reduced risk. A business adviser will help you develop a strategic plan while providing the support and mentorship necessary to build your capabilities, culture and connections for optimum growth. They will also facilitate access to relevant networks and help you maintain your growth momentum through regular meetings and follow-up. If you are eligible for this programme you are also able to apply for a Business Growth Grant.
If you would like to find out more, you can read about it here.
Business Growth Grants provide financial assistance for businesses involved in one of these three programmes. They are to further enable business operations and growth. If you would like to know more about how to apply, you can read about it here.
In order to qualify for one of these programmes your business must operate in one of these five key growth sectors:
- Food and Agribusiness
- Medical Technology and Pharmaceuticals
- Energy Oil and Gas
- Mining Equipment and Technology
It is also available for companies who provides services or technologies to support these sectors. That includes freight and logistics, infrastructure related construction and services, information and communication technology and digital technology.
In order to be eligible for the grant businesses need to meet these standards:
- Fit in one of the previously stated sectors
- Must have an ACN
- Must have turnover between $1.5m and $100m
- Must be solvent
- Must not have received a Business Evaluation Report, Business Evaluation Action Plan or a Business Review Report (from similar Federal government programmes) in the last five years
Here’s a story about how the Entrepreneur’s Programme was able to help out ModularWalls and how they have grown since receiving the assistance.
2. Export Market Development Grant
The Export Market Development Grant is a scheme by the Australian Government to financially support aspiring and current exporters. It encourages small to medium sized Australian businesses to develop export markets with up to eight grants available per eligible applicant and up to 50% reimbursement of export promotional expenses.
There are eight categories of promotional activities that can be claimed. They include:
- Having an overseas representative on a long-term basis to market your product
- Engaging a marketing consultant to conduct research or promotional activities
- The cost of travel during an overseas marketing visit
- Giving out free samples
- Participating in international trade fairs, seminars, in-store promotions, forums or any other similar activities
- Any external design or development of promotional literature and advertising material
- Bringing international buyers into Australia for approved export promotional purposes
- Registering or insurance of intellectual property
Any Australian individual, business, or organisation that has promoted their services or product(s) overseas during the year in which they wish to apply for the grant. Restrictions are that the income should not be of more than $50 million in the grant year, and they must have incurred $15,000 of eligible export expenses under the scheme (first time applicants can combine two years’ expenses).
To be eligible your must have promoted one of the following products for export:
- A good made in Australia
- A good made outside of Australia but Australia will derive a significant net benefit from its sale overseas
- All services except those specified as ineligible
- Know-how that mainly resulting from work done in Australia
- Conference/event held in Australia
- A tourism service
- An intellectual property right mainly resulting from work done in Australia
- A trademark that was owned, assigned or first used in Australia
If you think you are eligible and are interested in receiving the Export Development Market Grant then please get in touch with us and we will work with you and our allied advisory company to begin the process.
As step one, your advisor will help you submit an application for the grant. That will then be assessed and AusTrade will determine your provisional grant entitlement. It will then be paid as a split-payment. The first round will be a payment directly after the assessment from your grant entitlement, and is up to the ceiling amount of $40,000. Round two is at the end of the financial year and is a second tranche payment above the initial ceiling amount and is based on EMDG funds remaining in the budget.
3. Research and Development Tax Incentive (R&D)
The Research and Development Tax Incentive is a generous entitlement program that aims to encourage businesses to innovate through research by offsetting some of the costs. It is open to all firm sizes who are seeking to engage in relevant R&D.
If a business has under $20million per annum turnover, they can claim 43.5% through a refundable tax offset scheme, if turnover is over $20million, a business there is 38.5% of non-refundable tax offset available. There are two types of eligible activities: core and supporting. Core activities are enacted in order to generate new knowledge, whether that be for products, materials, devices, processed or services. Supporting activities are directly related to core activities and may involve conducting background research, literature reviews, feasibility analysis or process management.
In order to be eligible, you company must be a non-tax exempt corporation incorporated in Australia and must be undertaking R&D in Australia. Eligibility is regulated by AusIndustry and the Australian Tax Office. They conduct risk assessment and compliance reviews focussed on the eligibility of the research and the tax offsets allowable in respect to those activities.
There are seven eligible sectors:
- Food and Beverage
- IT and Software
- Health and Medical
If you think you are eligible and would like to apply for the Research and Development Tax Incentive please contact us and we can begin the process with you and our allied advisor to help through each step.
The first stage of the process is an eligibility assessment to assess whether your business meets all the requirements and ascertain whether the benefit is worthwhile. Stage two is to complete the registration form. Stage three is to complete the company tax return while including all relevant documentation for the R&D tax offset. Stage four is simply to receive the tax offset, this should take approximately six weeks and the net benefit will depend on the size of the claim and company’s profit or loss. Our advisors will work with you every step of the way and ensure it is a smooth and easy process.
If you are an R&D entity the first steps towards claiming the R&D tax incentive is to register your activities with AusIndustry on behalf of Innovation Australia. You must register every income year you want to claim the offset and within 10 months of the end of your company’s income year (and before the company income tax return is lodged).
4. Minimum Viable Product Grant (MVP)
The Minimum Viable Product grants is provided and assessed by the NSW Government’s department of Jobs for NSW. The objective of the MVP is to enable progress for promising pre-revenue start-up businesses from proof of concept to a MVP stage of development. Businesses may apply to develop an MVP either for the stage of first revenue or to a stage where the MVP is inadequate for the planned business model. Approved grants provide matched funding for up to 50% of the approved total development costs, up to $25,000.
Only activities that are directly associated with the development of the MVP will be supported. To be eligible for the grant businesses must satisfy the following criteria:
- demonstrate completion of proof of concept (e.g. prototype completed)
- have an ABN registered in NSW and be based in NSW
- be at a pre-revenue stage
- hold intellectual property (IP) or rights to commercialise
- have a potential customer (end user which must be a business), or a channel to market (i.e. distributor that will on-sell the product)
- have a scalable solution that can be deployed to multiple customers
- demonstrate 80% of the development costs will occur in NSW
- demonstrate adequate matched funding has been secured for the project
Applications are accepted all throughout the year and are to be submitted at www.jobsfornsw.com.au. If you need help applying, please get in touch with us and we can put you touch with professional advisers who can help guide you through the process.
To support your application you must provide a number of supporting document evidence. This includes:
- the primary location (ABN registration) of nominated supplier(s) for the development of the solution
- matched funding secured for the project (in the form of a recent bank statement/s (preferred), letters of credit, or letters of commitment from investors or shareholders)
- a potential customer or channel to market that is willing to trial and provide feedback on the MVP upon completion including first revenue and/or recommendations on the MVP’s market adoption
- a business plan that demonstrates how the proposed solution is scalable
- applicant(s) CV that demonstrates experience in the relevant field and ability to commercialise new products or services
Once the assessment is submitted with the correct documentation Jobs for NSW will generally completes each assessment within four weeks of submission, depending on the volume of applications. Applications that satisfy the eligibility and documentation requirements are then ranked competitively against the assessment criteria. The assessment criteria is the economic benefit to NSW, the level of innovation, the strength of the business model and the industry sector benefits.
Businesses who are successful in applying will receive 35% of the grant upon execution of the Funding Agreement outlined by Jobs for NSW and 65% following the completion and validation of the MVP. If you would like to find out more, you can read about it here.
We want our clients to have the best opportunities for creativity, growth and development, so if any of these three grants particularly interest you and you think you are eligible please get in contact with us. We know that applying for grants can often feel like they add more stress than they do value. That’s why we work with experienced advisors who can make the grant application process straightforward and simple.
Do you have a particular project in mind or maybe just want to improve an aspect of your business? Let’s chat about how to make that happen together.