Starting a business is a big undertaking, and there are many costs involved. Luckily, there are several government grants and incentives available to help offset some of the costs, and give your business a boost.
Government grants are usually given for specific business projects, rather than as general funding for business operations. Some grants involve financial assistance, but many also offer help /support with training, expert advice, employment, expansion, the commercialisation of products & research and development.
There are several State-based business incentives, however for this article, we’re focusing/ we will focus on government grants that are available Australia-wide.
Here are some of the most popular government grants for Australian startups:
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Accelerating Commercialisation Grants
The Accelerating Commercialisation Grants program provides funding of up to $1 million for businesses to commercialise innovative products, processes or services. The aim of the program is to help businesses bring their innovative products to market faster and to create jobs and economic growth.
To be eligible for the grant, businesses must have a product or service that is ready for commercialisation, and which has the potential to generate significant economic benefits for Australia. The product must also be new or significantly improved, and demonstrate a clear competitive advantage.
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Entrepreneurs’ Infrastructure Programme
The Entrepreneur’s Programme established in 2014, aims to encourage innovation and competitiveness by providing small and medium-sized firms with money and expert coaching. It is one of the most often applied-for government grants in Australia annually.
The government-supported programme effectively connects private-sector “facilitators”, (mentors) with firms to assist them with product innovation and commercialisation.
The programme also provides grants to entrepreneurs via the Accelerating Commercialisation fund. Since 2014, the program has awarded 543 awards totaling over $265 million. The award may finance up to 50 percent of qualified project expenses, with a maximum financing amount of $1 million. However, enterprises must finance the remaining 50% themselves.
More interesting are the eligibility requirements for applying. If your company has generated less than $20 million in revenue during the preceding three years, you may qualify. In addition, applicants must have an innovative product or service that they intend to commercialize in Australia and beyond.
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Grant for Business Growth
Businesses who utilize the Entrepreneurs’ Infrastructure Programme’s consulting services are also eligible to apply for a Business Growth Grant, which can help defray up to 50% of the cost of hiring a project implementation assistant. This particular grant is projected to be worth a maximum of $20,000.
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Export Market Development Grants
The Export Market Development Grants (EMDG) scheme is a key Australian Government financial assistance program for aspiring and current exporters. The scheme provides grants of up to $150,000 to help offset expenses such as overseas marketing trips, promotion of products at trade fairs and exhibitions, and market research.
To be eligible for the grant, businesses must be engaged in export promotion activities, and have incurred eligible expenses. Businesses must also have an annual turnover of less than $50 million, and be Australian-based with majority Australian ownership.
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Qualify your start up as an early stage innovation company
Early-Stage Innovation Company (ESIC) refers to a company that passes the early-stage test and a second innovation test. These conditions include:
– Incorporation or registration within the past three tax/financial years (or within the last 6 financial years if you meet additional criteria)
– Having total expenses of less than $1 million and assessable income of less than $200,000 in the preceding financial year
– Not being publicly listed in Australia or abroad.
When a business qualifies as an ESIC, it becomes more appealing to potential investors. This is because customers obtain a range of tax incentives, including a tax offset and, under certain conditions, an exemption from capital gains tax, when they purchase shares in your company.
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Small Business Grants Program by QLD Government
The Small Business Grants Programme provides grants of up to $5,000 for small businesses in Queensland to invest in activities that will help grow their business. The programme helps businesses to cover the costs of things like marketing, training, and business planning.
To be eligible for the grant, businesses must have fewer than 20 employees, and an annual turnover of less than $2 million. Businesses must also be able to demonstrate how they will use the grant funding to grow their business.
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Ignite Idea Fund, QLD Government
The Ignite Ideas Fund assists small to medium-sized enterprises in Queensland with strong growth potential in their efforts to carry out commercialisation projects that will:
– Strengthen important sectors in Queensland
- Help diversify the state’s economy
- Engage and/or benefit regional Queensland
- Compete in domestic and international markets
- Create new jobs today/now and in the future
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Women in Innovation Grants Programme
The Women in Innovation Grants Programme provides grants of up to $50,000 for businesses that are/ led by women. The programme helps businesses to cover the costs of things like market research, product development, and commercialisation.
To be eligible for the grant, businesses must have an annual turnover of less than $50 million, and be Australian-based with majority Australian ownership. Businesses must also be able to demonstrate how they will use the grant funding to grow their business.
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Research & Development Tax Incentives
The Australian Government offers a range of tax incentives for businesses that invest in research and development (R&D). The incentives are designed to encourage businesses to increase their R&D spend, and to create jobs and economic growth.
To be eligible for the tax incentives, businesses must have an annual turnover of less than $20 million. Businesses must also be able to demonstrate how they will use the grant funding to grow their business.
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Landing Pads Program
The Landing Pads program provides funding of up to $50,000 for businesses to establish a presence in one of five global innovation hubs. The aim of the program is to help businesses access new markets, and create jobs and economic growth.
To be eligible for the grant, businesses must have fewer than 20 employees and an annual turnover of less than $2 million. Businesses must also be able to demonstrate how they will use the grant funding to establish a presence in one of the five global innovation hubs.
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Co-operative Research Centres Projects (CRC-P)
The Cooperative Research Centres Projects (CRC-P) program provides funding of up to $5 million for businesses to collaborate with research organizations on R&D projects. The aim of the program is to help businesses develop new products and services and to create jobs and economic growth.
To be eligible for the grant, businesses must have an annual turnover of less than $50 million, and be Australian-based with majority Australian ownership. Businesses must also be able to demonstrate how they will use the grant funding to collaborate with a research organization on an R&D project.
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Innovation Connections
The Innovation Connections is a part of the AusIndustry Entrepreneur Program which provides funding of up to $20,000 for businesses to connect with research organisations and develop new products and services. The aim of the program is to help businesses create jobs and economic growth.
To be eligible for the grant, businesses must have fewer than 20 employees and an annual turnover of less than $2 million. Businesses must also be able to demonstrate how they will use the grant funding to connect with a research organization and develop new products and services.
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Grant for Minimum Viable Product, NSW Government
This funding by NSW Australian Government is intended to assist technological start-ups in doing market research and assessing consumer demand for their business models. Throughout the year, applications are accepted and companies can get up to $25,000 in funding. This funding is intended to assist technology entrepreneurs in connecting with potential corporate clients and gaining an understanding of industry requirements. This will aid in the development of precise technological goods to address industry needs or market gaps.
After determining if they meet the eligibility requirements, startups can apply online for MVP funding.
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Building Partnership Grant, NSW Government
You can apply for the Building Partnerships Grant to assist you with customer and market acquisition whenever your start-up is producing income and you have a minimum viable product that is tech-based and to which you hold the rights. The maximum award available to eligible businesses is $100,000.
Government grants can be a great way to get your start-up off the ground or to help it take the next step in its growth. There is a range of different grants available, so make sure you do your research to find the ones that are right for your business. And remember, even if you don’t get a grant, there are still plenty of other government incentives and programmes that can help your business to grow.
If you are in need of any Grant assistance, Appomate can help you get one. Contact us today.