If you’re a small business owner in Australia, you may have many ideas for growing your business. However, limited funds can often put a stop to business development initiatives. After all, you need money to make money.
This is where grants come into play. As a small business owner, you might need help with startup costs or operational funding. While many entrepreneurs turn to small business loans or lines of credit for financial support, a business grant can be a more attractive option based on your circumstances. Grants essentially offer free money, making them a great way to establish and grow your operations without the stress of repayment.
In this article, we will learn about the various business grants in Australia that can help your small business.
For tailored support in expanding your business in Australia, partner with Embee NextGen. Our expertise and guidance will help you navigate the business landscape with confidence and ease.
What Is A Small Business Grant
Before discussing business grants in Australia, it’s essential to understand what a grant is. A grant is a sum of money provided by federal, state, county, or local governments, and sometimes by private corporations. Grants are particularly advantageous for small businesses because they do not require repayment. Additionally, grants are inclusive and accessible to all, regardless of gender or class, making them an excellent option for business funding.
Top 5 Australian Business Grants for Startups and Small Businesses
Entrepreneur’s Program
The entrepreneur’s program grant is the most sought-after business grant in Australia. Its aim to support innovation through funding and various incentives catches the keen eye of many Small and Medium Enterprises. The program grants startups and SMEs access to a network of private-sector advisors and facilitators, helping them bring their products and services to market. It offers up to $1 million in funding through various schemes.
Eligibility Criteria
To be eligible for the grant, your company should belong to the following sectors
- Medical Technology
- Energy
- Mining
- Advanced Manufacturing
- Tourism Industry in Northern Territory
- Food and Agriculture
- Pharmaceutical
Research And Development Tax Incentive
Another business grant in Australia is the Research And Development Tax Incentive. The main goal is to support eligible companies belonging to the science and technology sector. This incentive aids them in developing innovative products and processes. The catch? It provides you with tax relief instead of money. Eligible startups and SMEs can request a refundable tax offset for expenses related to their qualifying R&D projects. This program provides a 43.5% tax offset, paid as a cash rebate for qualifying companies.
Eligibility Criteria
To qualify for tax relief, your organization should have an annual revenue below $20 million. It should also be proactively engaged in research and development activities.
CSIRO Kick-Start
Another notable business grant in Australia is the one by Commonwealth Scientific and Industrial Research Organisation. CSIRO provides the CSIRO Kick-Start program, which offers matched funding for startups and SMEs to leverage CSIRO’s research expertise. Ideal for budding entrepreneurs in Australia, this grant supports:
- Researching commercially viable new ideas
- Developing innovative or improved products or processes
- Testing new products or materials
Eligible companies can receive funding between $10,000 and $50,000, which can be used for project-related expenses such as salaries, travel, accommodation, overhead costs, and contractor fees.
Eligibility Criteria
Below are the criteria for qualification:
- Your business must be registered in Australia for less than three years.
- You must have an Australian Company Number (ACN).
- You must be registered for GST.
- Your primary place of business must be in Australia.
- You must demonstrate the ability to match the funding dollar-for-dollar.
- Your annual turnover must be less than $1.5 million for the past two years.
Accelerating Commercialisation
This grant is offered under the Entrepreneur’s program. The grant aims to assist eligible companies in bringing their innovative product, process, or service to market. It is divided into two main stages:
- Guidance Stage: Connect with a facilitator to receive valuable advice on your commercialisation strategies and get help with the application for the grant stage.
- Grant Stage: Provides funding of up to $1 million and covers up to 50% of your expenditure for the commercialisation project.
Eligibility Criteria
To be eligible for this grant, you must own a valid Australian business entity. Your business must have a total annual turnover of less than $20 million for the past three financial years combined, be non-tax exempt, and be registered for Goods and Services Tax (GST). Also, your project must provide valuable and innovative solutions to the Australian market.
Export Market Development Grant
The Export Market Development Grant (EMDG) is ideal for startups and SMEs looking to promote their products or services internationally. This grant provides a 50% reimbursement for activities aimed at expanding exports in global markets. Eligible companies can receive between $5,000 and $150,000, while others may qualify for up to $770,000, depending on their promotional expenses.
Eligibility Criteria
To qualify, you must be the owner of the products or services intended for export (not an agent selling on behalf of others), You must also have an annual total income of less than $50 million.
Conclusion
Business grants in Australia provide your business the money and assistance that it needs to reach its full potential. There are many grants provided by the government to help your businesses achieve new heights. The key is to keep on researching and then applying for a grant that fits your necessities. You should also be aware of their eligibility criteria and be prepared for them.
Looking for assistance applying for and accessing these grants? For this and any other assistance related to business finances, contact Embee NextGen today.