What is a Startup Grant?
Startup grants consist of money or support offered to startups and innovative businesses in order to help them excel in their niche. These grants generally fund projects with specific parameters and measurable outcomes. eg. app development.
When searching for funding, keep in mind that you’ll generally need to meet certain criteria to be eligible, and that aside from funding assistance, many schemes can build your firms’ skills and knowledge. Now yes, the lengthy applications, process times, and chance of rejection are enough to put most off… but, there are numerous corporations available to manage the funding process so you can focus on your business; they will be linked below.
Here are the top 6 startup grants in Australia 2020
1. The Research and Development (R&D) Tax Incentive
This tax incentive reduces company R&D costs by offering tax offsets for eligible R&D expenditure. Companies receive a refundable tax offset, allowing the benefit to be paid as a cash refund if they are in a tax loss position. The current value is 43.5 percent, meaning if you’re running at a loss and have spent $100,000 on eligible activities, you could potentially receive $43,500 in cash.
To be eligible for the R&D Tax Incentive you must:
– Be a company that is liable to pay income tax in Australia
– Conduct at least one activity that meets the definition of a core R&D activity
– Have eligible R&D expenditure greater than $20,000
The deadline for registering your eligible R&D is 10 months after the end of your income year, and your eligibility is self-assessed. You can find more info and register here.
2. Entrepreneurs Programme
Undeniably one of the top startup grants in Australia; Entrepreneurs’ Programme is a $400M government initiative to help businesses increase productivity and competitiveness with funding and access to a national network of private-sector advisers and facilitators.
It provides practical support for businesses including:
– Access to experienced business facilitators and advisors
– Co-funded grants to commercialise new products, processes, and services
– Funding to take advantage of growth opportunities
– Network and collaboration opportunities
– Tailored learning events across the country
Eligible businesses must have an annual yield (or operating expenditure) between $1.5 million and $100 million for one of the last three years. Click here to learn more.
3. Accelerating Commercialisation (AC) Grant
In Australia, this startup grant provides up 50% of expenditure to a maximum of $1,000,000 funding to cover eligible commercialisation costs. It aims to help take novel products or processes into new markets. If secured, recipients and eligible partner entities also receive $250,000 funding for ‘commercialisation offices’. Commercialisation guidance and a support network are included as part of the grant’s ‘portfolio services’.
How to get approved:
1. Ensure you have a board in place with a technical and commercial track record
2. Have matching funding available in cash
3. Expect up to 6 months of attainment processes
For more information, visit here.
4. Minimum Viable Product Grant NSW (Up to 25k)
The Minimum Viable Product (MVP) grant provides technology start-up businesses with funding to help them conduct market research and test their business model with consumers. Grants of up to $25,000 are available to cover up to 50% of approved project costs.
These grants are especially useful for helping startups to engage with potential business customers and create solutions that address industry needs or market gaps.
The objective of startup grants in Australia is to support auspicious pre-revenue businesses to progress from ‘proof of concept’ to MVP stage of development. These grants are available across all industry sectors to startups who are primarily focused on the development of a scalable technology solution.
Click here to see if your business is eligible.
5. New Business Assistance with NEIS
New Business Assistance with NEIS (New Enterprise Incentive Scheme) is an initiative of jobactive. It assists eligible job seekers who are interested in starting and running a small business with startup training and mentoring assistance. The 13-week course training aids job seekers achieve a nationally recognised qualification for either:
– Certificate III in Micro-Business Operations
– Certificate IV in Small Business Management
During the training, job seekers will develop a NEIS Business Plan which will need to be approved by their NEIS provider. They will also receive an funded allowance equal to the Newstart Allowance.
To find out more and apply, you can reach out to one of these three support services: jobactive, ParentsNext, Disability Employment Services to discuss if NEIS is right for you. Otherwise, head to the government website for more information.
6. CSIRO Kick-start
This program offers eligible businesses access to dollar-matched funding of $10,000 – $50,000 to undertake research activities with CSIRO.
These activities include:
– Research into a new idea with commercial potential
– Development of a novel or improved product or process
– Testing of a novel product developed by the company
Eligible businesses are able to apply for a second Kick-Start project after completion of their first, providing the total funding received does not exceed $50,000.
You can find out more about eligibility and application here.
Appello Software is Australia’s leading app and web development company. Our services all classify as R&D, so reach out below for an initial consultation of your situation.
- Email: firstname.lastname@example.org
- Australia: 02 7202 5164