Have a great idea for a business but struggling to get it off the ground?
According to the Australian Bureau of Statistics small businesses account for 97.4% of all Australian businesses. So the Australian Government has actually created some pretty enviable grants for startups.
Grants can be a total game changer for a business, but beware the applications are lengthy, and the process times are long and often the reporting when you do win a grant is time consuming. But if you are willing to give it a go, you could gain access to resources that will help you grow your business more quickly than you could on your own.
Top 5 grants for start ups
Here are the top five grants that we recommend for start ups:
1. The R&D Tax Incentive
For the uninitiated R&D is Research and Development. This is particularly useful and necessary for technology ventures that require capital to do extensive research and work developing a product. The R&D tax incentive allows companies that are earning under $20 million the ability to claim a 43.5% refundable tax offset against R&D expenditure of $100 million or less. All other companies can claim a 38.5% non-refundable tax offset that can be carried on to future income years.
However, where expenditure is less than $20,000, companies can only make a claim if it was undertaken with a research service provider or co-operative research centre.
As tech industry professionals Azure Group are well versed in supporting business with their R&D plans and lodgements. Get in touch if you need help here.
2. Export Market Development Grant (EMDG)
If you are looking at exporting your product or service or have a service or product that encourages inbound tourism then this could be for you. For businesses that have spent $15,000 or more on export promotion, they may be eligible for reimbursement of up to 50% of costs exceeding $5000.
As tech industry professionals Azure Group are well versed in supporting business with their EMDG lodgements. Get in touch if you need help here.
3. Instant Asset Write-Off
Not technically a grant, however, the Instant Asset Write-Off allows small businesses to write off an asset valued up to $20,000 in that tax year, rather than depreciating it over a period of time. This can be used for equipment, machinery, hardware and software.
4. Entrepreneurs’ Programme
A federal government scheme to help entrepreneurs and start ups. Not only monetary, there are a range of support tools on offer. These include co-funded grants, business advice, collaboration opportunities and incubator support. The most common grant under this program is the Commercialisation Australia Grant. Find out more here.
5. CSIRO Kick Start
Aimed at innovative new startups this grant by the CSIRO (Commonwealth Scientific and Industrial Research Organisation) provides matched funding to allow them to access the agency’s research expertise and capabilities. Vouchers range between $10,000 and $50,000 and can be used for researching the commercial viability of a new idea or developing and testing a new product or service. To be eligible you need a turnover less than $1.5 million, have an ACN and be registered for GST and be able to demonstrate your ability to fund your proportion of the project funding.