It is an appropriate time to review what is happening in the Government Grant space and what are the most attractive grants for SMEs.
The Federal government has a range of grants to assist businesses from start-up through to turnovers of $100M. These grants are all designed to assist businesses to add value to their businesses by making services available to them at a discounted cost.
The most popular grants for SMEs include:
- Accelerating Commercialisation – a grant of up to $1M on a 50/50 basis for inventors and businesses that have developed a new product, process or service. Available for applicants with nil turnover through to $20M turnover.
- Business Growth Grant – a grant targeted at specific industries including:
- Advanced manufacturing;
- Oil, gas and energy resources;
- Medical technologies and pharmaceuticals;
- Mining equipment, technology and services;
- Food and Agibusiness;
- Freight and Logistics
- Infrastructure related construction;
- Information and communication technology;
- Professional services primarily in the scientific area;
- Digital technology
There are nearly 650 different business classifications in these industry categories.
Grants of up to $20,000 on a 50/50 basis for services which will then enhance the businesses’ operations could include:
- Business Plans
- Cashflow Forecasts
- Mentoring of the management team
- Research and Development – tax rebates available to companies with turnover up to $20M are 43.5% of the company’s research and development expenditure. A particular benefit is that is the company is trading at a loss a cash payment equivalent to 43.5% of the research and development expenditure subject to that amount being less than the company’s loss will be paid to the company within thirty days of lodgement of the company’s taxation return.
- Industry Skills Fund – an outstanding grant opportunity that applies for very small businesses through to businesses with over 200 employees. This grant will contribute to skills development for team members where the business can utilise the skills that have been developed by the individual team member in the business’ activity. There has to be a nexus between what the business is aiming to achieve and the skills training undertaken by the team members.
Grants are available for:
- Micro businesses: 0 – 4 full time equivalent employees is 75%.
- Small businesses: 14 – 19 full time equivalent employees is 66%
- Medium size businesses: 20 – 199 full time equivalent employees is 50%
- Large businesses: 200 plus full time equivalent employees is 25%
For business situated in Northern Australia which comprises all of the Northern Territory and north of the Tropic of Capricorn in Queensland and Western Australia, grants are available up to 199 full time equivalent employees is 75% and for over 200 employees 50%.
- Export Market Development Grant for businesses with turnovers up to $50M has a grant of up to $150,000 available for reimbursement of export market expenditure undertaken by the business.
- Apprenticeship Grants – there are various apprenticeship grants available from the Federal and some of the State governments for the engagement of apprentices.
- Engagement of persons who have been unemployed. The Federal and State governments have various programs for businesses to engage as employees people who have been unemployed for a period of time.
These are just a short summary of some of the hundreds of grants that are available for the benefit of small/medium enterprises. These grants are funded by taxation receipts that every business in Australia is paying into.
There is an opportunity for accountants to offer proactive advice to clients so that your client can make a legitimate application for some of this money to assist in the development of their businesses.
How we can help you
Many accounting and advisory firms struggle to find the time and the resource to identify grant opportunities and then develop submissions on behalf of their clients. At ESS BIZGRANTS, we’re here to help you with both discovery and submission. Just call Peter Towers on Ph 1800 232 088
If you would like to receive a more information on ESS BIZGRANTS, please visit our website www.essbizgrants.com.au and register for a two week no obligation free trial to try out the system with one or two of your clients.
Peter Towers | Managing Director | ESS BIZGRANTS