Australia

Government Grants in Australia

The Australian Government currently provides businesses with over 350 different government incentives programs.  Most businesses are aware of some of the grants and incentives that are available to them, but very few are aware of everything that they could be entitled to.

Catalyst Solutions specialises in assisting companies to identify, optimally structure and access government grants and tax incentives.  As a member of the VATit group, Catalyst Solutions is able to leverage a business that has years of experience in a global organisation, dedicated to creating transparent and valuable solutions.

Australia R&D Tax Incentives

R&D TAX SAVINGS:  Companies that are developing new products or processes, or improving existing ones, are entitled to favorable tax treatment.  Depending on turnover levels, companies can get up to 16% of their expenditure back as a reduction in their tax bill.

R&D CASH PAYOUT:  Small companies that are developing new products or processes, or improving existing ones, and that are not tax-paying, can get a cash payout from the ATO.  The payout is 43.5% of their expenditure.

WHAT IS THE R&D TAX INCENTIVE?

The R&D Tax Incentive is one of the federal government’s mechanisms to support companies to achieve greater competitiveness, drive innovation and enhance Australian capabilities.  The Incentive’s eligibility criteria are intentionally broad, as the government wanted the incentive to be available to a wide range of industries and to companies of all sizes.

The government currently provides approximately 12,000 companies with $2 billion worth of funding through the Incentive.  However, there are many companies that are unaware that the work that they are doing would actually qualify for this funding, and are therefore missing out on money that they are legitimately entitled to.  The Incentive is unlike most grant programs, which are generally competitive in nature.  As long as your company meets the eligibility criteria it automatically gets the funding.

The Incentive is administered by two government organisations; the ATO and AusIndustry.  Companies need to interact with both organisations to get the funding, and each organisation has its own unique requirements, processes, deadlines and paperwork.

WHAT ARE THE MOST POPULAR GRANTS?

Outlined below are the government incentives that our clients have shown the most interest in:

Accelerating Commercialisation (administered by AusIndustry) – up to 50% of qualifying commercialisation expenses reimbursed, up to a maximum of $1,000,000 per project.

Export Market Development Grant (administered by Austrade) – up to 50% of qualifying export market development expenses reimbursed, up to a maximum of $150,000 per year.

Incubator Support Initiative (administered by AusIndustry) – up to 50% of qualifying international competitiveness improvement expenses reimbursed, up to a maximum of $500,000 per project

HOW CATALYST SOLUTIONS CAN HELP?

Catalyst Solutions is a boutique consultancy that offers a focused, efficient and value adding service offering.  Our team has qualifications in science, IT, engineering, accounting and law, as well as experience in assisting companies across all industries to access the Incentive.  We leverage off our multidisciplinary skillset to ensure that our clients maximize their legitimate entitlement to the government funding, whilst ensuring that the claim process minimizes disruption to their business.  Our process is as follows:

  • Educate companies about how to access their full entitlement from the Incentive
  • Identify both the ‘obvious’ and the ‘non-obvious’ activities that qualify
  • Prepare all necessary documentation to maximize the chances of success
  • Analyse expenditure that qualifies for the Incentive to ensure approval by the ATO
  • Navigating any interactions with AusIndustry and the ATO.

 

If you are developing new products or processes, or improving existing ones, the Catalyst Solutions offering helps to claim your full entitlement from the Incentive.

CONTACT CATALYST SOLUTIONS?

Dave Corbin is the Managing Director of Catalyst Solutions Asia Pacific. He is a Chartered Accountant and has a Bachelor of Science. Dave was previously a Senior Manager in the R&D Incentives team of one of the Big 4 accounting firms. He has assisted companies from all industries to access government funding for their R&D for over 10 years and across 3 continents.

Dave is always keen to discuss whether your company may be eligible for the Incentive and, if so, how the Catalyst Solutions team can work with you. Please contact him on +61 2 9437 3654  or at dave@catalystsolutions.com.au