BDO partner Nicola Purser says businesses should be more proactive in applying for grants

Due to the impact of Covid there are a multitude of new federal, state and local government support programs and targeted grant opportunities. Here’s what you should know.

Many businesses are missing out on grant opportunities.

A silver lining of COVID-19 is the recognition by Governments of the need to support businesses to invest in R&D, commercialise their innovations and shore up supply chains to ensure Australia’s prosperity for future generations. This has resulted in a multitude of new Federal, State and local Government support programs and targeted grant opportunities. However many businesses are missing out.

As someone who helps businesses access Government funds, it’s frustrating to see that communication and publicity of grant opportunities is often poor or businesses are not proactive in securing taxpayer investment. In my opinion, the effort to secure public investment should at least match that to securing private investment.

From a Queensland perspective, there are a raft of programs on offer.

Nicola Purser is a tax partner at accounting and advisory firm, BDO in Brisbane, specialising in Research & Development.

Invested in Queensland, an initiative under the $3.34bn Queensland Jobs Fund, is providing financial and non-financial assistance to high impact, contestable projects that offer significant job creation. For smaller scale projects, State Development’s Industry Partnership’s program may apply if your project aligns with the Government’s priority industry sectors which include the likes of Hydrogen, Aerospace and Beef Processing. For entrepreneurs looking to commercialise a good idea, there’s hope for Round 9 of the popular Ignite Ideas Fund.

From a Federal perspective, you are in luck if you are a manufacturer in one of the six priority sectors including the likes of Medical Products, Resources Technology and Clean Energy. Alternatively, there are many other targeted programs such as the $20bn Medical Research Future Fund, ARENA for renewables, Export Market development Grants for exporters or even bushfire recovery funds.

There are three key things I suggest you should consider when applying for a grant. Ensure your project aligns with the Government’s agenda or roadmap. Identify how the investment will benefit your organisation and the broader economy. And importantly, don’t leave it to the last minute to seek advice. Even the best word-smithed grant application will not be successful if the project mis-aligns with the grant’s objectives.

For those who do miss out on a particular grant program it is always worth considering whether you are eligible for the research and development tax incentive. This is a non-competitive program providing tax benefits annually to all companies that invest in eligible R&D activities.

Nicola Purser is a tax partner at accounting and advisory firm, BDO in Brisbane, specialising in Research & Development.