Australian Government Grants & Incentives

Let InCorp Advisory help you access available funding for innovation and growth.

The Australian Government offers several grants that can give innovative small and medium-sized businesses the critical cash funding they need to move forward.

Unfortunately, few business owners take advantage of them. Out of the millions of Australian businesses currently eligible for the Government’s Research & Development Tax Incentive, approximately 70 percent haven’t applied for it.

Three importants grants are:

R&D Tax Incentive

The R&D Tax Incentive is one of the most lucrative government incentives globally — regardless of your business size. Offered by the Australian Taxation Office and AusIndustry, it provides a generous offset to encourage research and development activities that can benefit the Australian economy. For companies with a turnover under $20 million, it can deliver a cash benefit of up to 43.5 cents in the dollar. For those with a turnover more than $20 million, the benefit is still significant however reflected as a reduction in income tax payable.

To qualify, you need to be an Australian company that has participated in the following activities over the last year:

  • Developed a new or unproved product, service, material device or process
  • Generated new knowledge based on scientific principles including computer science
  • Undertaken an experiment, hypothesis-driven process
  • Outsourced research activities
  • Licensed new technology and tried it on a trial basis
  • Attempted to solve an industry-wide problem
  • Completed trials that led to lost goods
  • Other activities intended to generate new knowledge

Our Process

1. Discover

We work with you to define eligibility and identify potential R&D projects

2. Document

Using our unique interview-based ‘reverse audit methodology,’ we prepare your supporting documentation, including R&D project plans.

3. Calculate

We calculate your eligible R&D expenditure on a project-by-project basis.

4. Lodge

We prepare your application for registration of R&D activities for lodgement with AusIndustry, and if approved, the R&D schedule for lodgement with the Australian Taxation Office.

5. Assess

We liaise with AusIndustry and the Australian Taxation Office in the event of any review or audit.

Export Market Development Grant

Australia is serious about improving its export industry, and the Government is willing to pay handsomely for it.

Through the Export Market Development Grant, the Australian Government offers up to a 50 percent reimbursement on promotion-related expenses of exports—be they products, services, or even simply intellectual property.

The program encourages small and medium-sized Australian businesses to develop export markets in all industries and sectors, and it even includes inbound tourism and the export of ideas and knowledge beyond Australia’s borders.

To qualify, businesses must have spent $15,000 or more on the promotion of their export.

Early Stage Innovation Company (ESIC)

The Early Stage Innovation Company (ESIC) tax incentive provides concessional tax treatment for investors in innovative, high-growth start-ups.

As part of this initiative, as of 1 July 2016, if a taxpayer invests in a qualifying ESIC, then they may be eligible for tax incentives. These tax incentives include:

  • 20% non-refundable tax offset on investments, capped at $200k per investor per year; and
  • 10 year exemption on capital gains tax, provided investments are held for 12 months

For example, an investor who provides early stage capital of $1m to a business that qualifies as an ESIC according to the the eligibility criteria will receive a $200k tax offset and a 10 year exemption of CGT on the value of the shares in the ESIC business if they are held for more than 12 months.

Eligibility criteria

In order for a company to be considered eligible under the scheme, it must meet all of the criteria below:

a) The company must have been incorporated or registered in the Australian Business Register within the last three years (last six years if additional criteria is met*).

b) The company (plus any wholly-owned subsidiaries) must have total expenses of $1 million or less in the previous income year*.

c) The company (plus any wholly-owned subsidiaries) must have revenue of $0-$200k in the previous income year.

d) The company is not listed on any stock exchange, either in Australia or abroad.

Qualifying as an Early Stage Innovation Company

There are two different tests used to qualify as an ESIC. If a company does not pass the 100-point test, it must rely on the principles-based innovation test.

Primary Test: 100-Point Innovation Test

A company must assess itself against a list of criteria (assigned weighted points) and achieve at least 100 points in order to qualify as an ESIC under this test.

Alternate Test: Principles-Based Innovation Test

A company may choose to either self-assess or request a private binding ruling from the ATO on whether it qualifies as an ESIC. Given the subjective nature of the test, it is recommended a private binding ruling be sought to confirm the company’s view.

We’ve helped companies of all shapes and sizes, from a wide range of industries, achieve ESIC status.

R&D Tax Incentive Export Market Development Grant Early Stage Innovation Company (ESIC)
  • Cash rebates to encourage research and development activities
  • At Incorp Australia, we’ll manage the end-to-end application process for you, from identification through to submission. Plus, there are no up-front fees. We’ve helped companies, from a wide range of industries, in maximizing their Government Incentive claims. With a 100-percent success rate and over $230 million in R&D incentives claimed to date, our track record in this space speaks for itself.
  • The R&D Tax Incentive is one of the most lucrative government incentives globally — regardless of your business size. Offered by the Australian Taxation Office and AusIndustry, it provides a generous offset to encourage research and development activities that can benefit the Australian economy.
    • For companies with a turnover under $20 million, it can deliver a cash benefit of up to 43.5 cents in the dollar.
    • For those with a turnover more than $20 million, the benefit is still significant however reflected as a reduction in income tax payable.
  • Reimbursement on promotion-related expenses of exports.
  • Through the Export Market Development Grant, the Australian Government offers up to a 50% reimbursement on promotion-related expenses of exports—be they products, services, or even simply intellectual property.
  • The program encourages small and medium-sized Australian businesses to develop export markets in all industries and sectors, and it even includes inbound tourism and the export of ideas and knowledge beyond Australia’s borders. To qualify, businesses must have spent $15,000 or more on the promotion of their export.
  • Concessional tax treatment for investors in innovative, high-growth start-ups
  • The Early Stage Innovation Company (ESIC) tax incentive provides concessional tax treatment for investors in innovative, high-growth start-ups
  • As part of this initiative, as of 1 July 2016, if a taxpayer invests in a qualifying ESIC, then they may be eligible for tax incentives. These tax incentives include:
    • Non-refundable carry forward tax offset of 20% paid for qualifying investments (limited to $200,000 for the investor and affiliates collated per income year)
    • Modified capital gains tax (CGT) treatment that disregards capital gains on qualifying shares held for at least 1 year and <10 years

Our grant experts have secured more than $230 million in grants for our clients to date.

We can help you too.

Case Study

For several years now, InCorp Advisory has been supporting John Barraclough’s two major businesses: UAG Bio Nutrients and UAG Macadamias.

How InCorp Advisory Can Help

Scalable Service

Ability to grow with your business

Fixed Fees

No surprises

Reduce Costs

Compared to using internal resources.

Tailored to You

Meeting outside business hours and on weekends

FAQs

What is government funding in Australia?

The Australian Government offers grants to a large number of stakeholders that are often used to attain government policy goals.

What are the benefits of getting government incentives in Australia?

They include:

  • Increased cash flow
  • Tax breaks
  • Reduced operating costs
What are some Australian government incentives for small businesses?

They are:

  • The Entrepreneur’s Programme
  • Austrade Landing Pad
  • Export Market Development Grant
  • Accelerating Commercialisation

Contact Our Team

Sameer Kassam

Co-CEO

Victoria Campbell

Victoria Campbell

Director, Government Incentives

Contact InCorp Advisory

How Can We Help You?

We deliver advisory services to help you grow & scale your business.

Contact InCorp Advisory

Level 1, 6-10 O’Connell Street,
Sydney NSW 2000
+61 2 8999 1199

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