How Growth-Focused Companies Can Target Government Incentives For Growth And Innovation

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The Australian government has curated a comprehensive suite of incentives that can benefit startups and scale-ups. These incentives range from financial grants to tax concessions for R&D and innovation and can be a key opportunity for startups to accelerate to market and establish a sustainable business.

In short, harnessing these incentives is crucial for an enterprise in its early days when resources are limited but the need to scale is significant. As anyone who has tried to access government incentives and grants knows, however, these opportunities have significant requirements, and it’s important to have a partner like InCorp Advisory, who understands how to access these opportunities, onboard to assist.

Key Programs To Be Aware Of

The Australian government’s grant portfolio is diverse, catering to various developmental stages of a company, from inception and R&D to market penetration. Identifying grants that align with your business needs is crucial.

Some of the main government incentives that startups and scale-ups can often target effectively include:

  • R&D Tax Incentive: This is the big one. For businesses in technology, manufacturing, science, and any other areas where innovation is the central opportunity for business growth, the R&D Tax Incentive is a significant tax concession, offering tax offsets for the otherwise expensive R&D undertakings.

  • Early Stage Innovation Company (ESIC): Early stage businesses benefit from being an Early Stage Innovation Company because they can often attract investors thanks to some enticing tax incentives, including a 20% non-refundable tax offset on investments and a capital gains tax exemption.

  • The Industry Growth Program: Announced in the 2023-24 May Budget, this program provides advice and matched grant funding for startups and SMEs to commercialise their ideas and grow their businesses. This program is part of a broader initiative to enhance innovation and support economic growth​.

  • State-Specific Support: Beyond federal initiatives, Australian state governments will also offer their own range of incentives to help build local companies, including grants, concessional loans, and support services. If you’re applying for or the recipient of state grants you will often also qualify for federal grants, and InCorp Advisory can help you identify those opportunities.

Compliance And Eligibility

Because there is a lot of scrutiny on how government funds are invested, the requirements to be eligible for grants and tax incentives tend to be significant and inflexible. Understanding this and being able to demonstrate the ability to meet the compliance mandates and eligibility prerequisites for each incentive is essential.

Meticulous documentation and guideline conformity are also keystones to effectively accessing government support.

It’s also important to get this right, because applying for grants is a lengthy process, and if the grant isn’t awarded, the valuable time that went into that work is lost.

So, to maximise the opportunity and benefits of these incentives, growth stage companies should:

  • Identify the most pertinent programs based on industry, developmental stage, and specific requirements.
  • Understand the application intricacies and prerequisites for each incentive program.
  • Strategise on the utilisation of the incentive for optimal business growth.
    Work closely with a partner like InCorp Advisory that can help you canvas the opportunity, determine if your startup is eligible, and then maximise the chance that your grant application is accepted.

Stay On Top Of The Opportunity

Government tax incentives, grants, and other opportunities evolve over time. A change of government can mean a recalibration of what the country is interested in investing in, and the availability of funds can change from one year to the next.

Staying informed and adaptable is important for any business leader who wishes to pursue government investment as an opportunity to bring capital into the business. Utilising resources such as government websites and the media can be useful, but ultimately the best source of information in this area is specialist advisors, both in terms of your sector and government incentives.

Harnessing government incentives is a strategic move for any growth company in Australia. Accessing these opportunities starts with a phone call. InCorp Advisory is dedicated to supporting you in navigating these opportunities. Reach out to us for a complimentary consultation to discover how these incentives can be the catalyst for your organisation’s growth and triumph.

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InCorp Content Team

InCorp’s content team includes talented copywriters from our regional group and globally. We contribute informative, thought leadership, and market-trending articles to guide business owners across Australia and beyond.