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If your business isn’t actively looking into grant opportunities, you could be leaving money on the table. With 2024 now upon us, there are new grants being announced on a regular basis.
Find out how Government business grants work, where to look for them and how to apply.
How business grants work in Australia
Business grants give you funding to put towards the growth and success of your business.
Thriving businesses create jobs and revenue, all of which is taxed. Therefore, it makes sense for the Government to find ways to help businesses survive, grow and succeed. Millions of dollars are committed each year to achieve this, with a changing focus on different industries or initiatives.
Common grants include funding to:
- Improve productivity
- Restore or upgrade buildings
- Hire or train staff
- Purchase equipment
- Reduce environmental impact
- Export or import products
- Research and innovation
- Recover from the impact of a natural disaster or financial hardship
A grant is not simply an injection of money to spend as you would like. Each grant will be targeted at a specific goal or project. In some cases, you will need to fund the activity yourself, then have the money refunded as part of the grant process. Another common arrangement is where the government will co-fund an initiative, where they fund a percentage of the costs, and you contribute the rest. In other cases, you may be able to secure full funding for a project upfront.
Types of grants
Here are the some of the business grants that are offered from time to time:
- Federal government grants: Grants given by the federal government tend to be the largest but are also the most complex to apply for and the most competitive. There are usually hundreds of different grants available, offering funding for everything from disaster recovery to manufacturing to medical research.
- State government grants: State government grants tend to focus on state priorities like infrastructure and job creation.
- Community and local government grants: Local government will also often offer grants aimed at social and community development.
- Wage subsidies: Wage subsidy grants are in place to help hire new employees, often targeting people with disabilities, people in specific age groups and long term unemployed.
- Corporate grants: Some large brands offer grant programs to small businesses, farms, and other suppliers, as a way of supporting business growth in Australia.
Where to find out about business grants in Australia
One of the issues with grants is that they come and go. Some will be offered annually for a long time, and others will be one-offs. Finding out which grants you are entitled to apply for in any given year can be tricky as you need to keep your eye out for announcements, review the eligibility criteria and make sure you do not miss the application deadlines.
Here are some of the options for finding grants:
- Search online directories: The Federal Government’s grant finder is a good place to start to see all the major grants that are currently available, or you can search for grants in your state. The Services Queensland website has its own grant finder, for example. You can also check your local council website to see if there are any grants available.
- Work with a grant ‘agent’: Grant agents will help you find the best grants for your business. They work for a fee but if you win a grant, it can make a significant difference to your business.
- Ask your accountant: Accountants have their finger on the pulse when it comes to government grants. You can ask to include discussions about grants in your regular catchups.
Applying for a business grant
Different grants have different application processes.
For any grant, you must first check that your business is eligible. There may be criteria that rule you out, such as the number of people you employ, your location, your revenue, or the number of years you have been operating.
The application process will require you to share information about your business such as annual turnover, delivery model, and business plan. You are likely to be asked to present a business case that explains why you need the funding, and the outcome you expect to achieve. Your application will need to be well-written and answer every question, so it stands out from the competition. You may also need to provide quotes from suppliers to demonstrate how much money will be spent and with whom.
Australian business grants: what you need to know
Here are some other points to be aware of:
- You may be required to submit invoices to prove how the money has been spent
- Some grant funding may be taxed, so loop in your accountant when you create your budget to spend grant money
What would you do with an extra $10,000, $20,000 or more to grow your business in 2024? It’s worth keeping your finger on the pulse in terms of grants as they can make a massive difference to your growth trajectory.
Want help to identify and apply for business grants? Talk to Crest Accountants today.
