Australian government grants and assistance

Australian government grants and assistance

There are a vast number of Federal and State Government grants available to small businesses to help and encourage them to grow. But how do you find them?

Most of them have limited benefits, but the two with the highest benefits that assist many companies are:

Export Market Development Grants

These Grants provide assistance to develop exports to all international markets (excluding New Zealand, Iran and North Korea).

It provides a taxable grant based on eligible expenditure (including overseas market visits, overseas representation, communication costs, marketing consultants, free samples, trade fairs, trademarking, etc.) to promote exports.

It focuses on promotional activities and does not assist in the general establishment of a product or business.

It is administered by Austrade. Companies, trusts and sole traders are all eligible.

The grant is based on 50% of eligible expenditure in excess of $15,000 per year. The minimum grant is $5,000 and the maximum grant is $150,000.

Research and Development Tax Incentive

The R & D Tax Incentive is offered by the Australian Tax Office. For companies with a turnover under $20M the R & D Tax Incentive is a 45% refundable tax offset of eligible research and development expenditure. However, if the company is profitable, the net benefit reduces to 15%. A tax credit is paid out as cash. Companies with a turnover exceeding $20M receive tax credits of 10%.

Only companies are eligible, not trusts or sole traders. To be eligible, companies must register each year with AusIndustry and must have spent a minimum of $20,000 on eligible development  expenditure.

You may have read about other incentives in the past. Please note the May 2014 Federal Budget has dispensed with the incentives in the area of Commercialisation Australia and Enterprise Connect.

If you would like to explore opportunities in this area, contact us to discuss your eligibility.

Correct as of July 2014

Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.

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