The Australian government offers support to Australian entrepreneurs wanting to start a business. Getting one of these grants can be extremely difficult. Each grant has a lengthy application, an extremely long processing time and the chance of rejection is astronomical. However, if approved, these grants can be a game changer those who are willing to take a chance on these grants. Let’s take a look at five startup grants that are worth applying for.
The Entrepreneurs’ Programme
In 2014, the Entrepreneurs’ Programme replaced the Commercialisation Australia and the Innovation and Investment Fund. This grant helps businesses increase their productivity and gives them a competitive edge by providing them with funding and access to a national network of advisers and facilitators.
The programme’s grants are funded by the Business Growth Grants and the Accelerating Commercialism Fund.
The Accelerating Commercialisation Grant provides up to 50 percent of the costs for a project. However, it should be noted that there is a cap of $250,000 for commercialisation offices and other eligible partner entities and one million dollars for all other applicants.
You can also apply to receive advice on your ventures by experts in the sector. They will help you learn more about running a business and how to maximize your profits through Innovation Connections.
Finally, the Entrepreneurs’ Programme offers funding for incubators that helps startup enter their respective global markets. Both new and existing incubators can apply for grants. These grants can be up to 50 percent of the project value and are capped at a half a million dollars. Entrepreneurs and expert in residence programs can net $25,000.
Research and Development Tax Incentive
The Research and Development Tax Incentive (R&D) allows businesses to succeed through a tax offset that encourages the development of a variety of businesses from large to small.
Companies whose annual profits of less than $20 million can claim a refundable tax offset of 43.5 percent. For businesses with profits more than $20 million, the tax offset is capped at 38.5 percent and is nonrefundable. Any non-refundable offset amount that is not used can be carried to future years. For R&D expenditures that are under $20,000, the company can only make a claim if the expenditure was done by a co-operative research centre or research service provider.
Applications can be done at any time; however, the company must register for R&D within 10 months of their first income year. To apply for this, click here.
Venture Capital Limited Partnerships
The Venture Capital Limited Partnership (VCLP) programme is to help draw foreign investors to Australian businesses to help boost the local venture capital market in the area with tax benefits. In order to be eligible, all funds must be registered as VLP and make high-risk investments for a minimum of 12 months.These investments must be in companies that are valued at less than $205 million and 50 percent of the assets and employees must be located in Australia.
The tax benefits for VCLPs include exemption from capital gains on profits made by the partnership, flow-through taxation treatment and the ability to claim any carried interest instead of reporting it as revenue. If you would like to apply, click here.
Austrade Landing Pad
The Austrade Landing PAD offers Australian startups a way to enter the global market through one of five innovation hubs.
Landing Pads based out of Berlin, San Francisco, Shanghai, Singapore or Tel Aviv can benefit from an Australian based market with an access to mentors, investors, talent and networks. In order to eligible, a startup must demonstrate a strong vision, be able to explain how Landing Pad could help them, have scalability, differentiation and traction.
Austrade provides a business with a number of free services and accelerator; however, the participant must fund their own accommodations, living expenses, insurance travel and visas. Austrade provides funding for global startups in Australia through their Export Market Development Grant. If you would like to apply for this grant, click here.
Export Market Development Grant
The Export Market Development Grant (EMDG) provides money for exporters in a range of industries to help increase tourism to Australia and outbound markets from Australia. Businesses that spend more than $15,000 on export promotions can get a 50 percent reimbursement for any costs exceeding $5,000. In order to eligible, the business must have promoted inbound tourism, held Australia events or conferences or exportation of goods from Australia.
Applications are open until midnight on February 28, 2017, if lodged by an approved consultant. For those who want to do it themselves, the application closing date was November 30, 2016.