Maintaining a healthy cash flow is always a top concern for most start-ups. How do you ensure funding while you’re still trying to get your product or service off the ground, yes? Furthermore, how can you secure funding without giving away too much of your equity in the process?
One way to do that is to apply for grants. These are typically government-funded and awarded to start-ups based on certain criteria.
Fortunately for start-up founders in Australia, the government has some pretty impressive grants on offer. As a public service to our start-up/SME customers, here are three of the most prominent ones:
1.) The Research & Development (R&D) Tax Incentive.
As the name suggests, this incentive is specifically for start-ups aiming to create new products and processes in the science and technology space. It covers the said start-up’s innovative and experimental activities towards that goal in particular.
Furthermore, you can claim a tax offset on the costs of your eligible R&D activities, even if you’re operating at a loss. Currently, this tax offset is 43.5%. So, for example, you’ve spent $100,000 on eligible activities. You can then claim $43,500 in cash as your tax offset.
Eligibility is self-assessed for this incentive. The deadline for applications is ten months after the end of your income year. Click here for more details.
2.) Accelerating Commercialisation (AC) Grant.
After R&D, we proceed to bringing goods and services to market. This is where the AC grant comes in.
The AC grant offers to match up to $1,000,000 in funding activities bringing products and services to new markets. Best of all, you can apply for it at any time. As a bonus, you’ll receive guidance and network support as part of the grant’s “portfolio services.”
3.) Export Market Development Grant (EMDG).
Thinking about going global after achieving considerable success Down Under? The EMDG’s got your back.
Basically, it was designed to aid businesses during their overseas market exploration phase. It currently offers a 50% reimbursement for spending on activities promoting products, goods, and services to the overseas market. (The cap is at $150,000 per application.)
On top of the previously mentioned grants, the AU government also offers the same for start-ups in the five growth sectors. These include advanced manufacturing, agribusiness, energy, health, and mining.
Here are just a handful of examples:
1.) Manufacturing Modernisation Fund.
The federal government offers this grant to businesses in the manufacturing sector. Matched funding that ranges from $100,000 to $1,000,000 on a 3:1 basis supports employee headcount growth, upskilling, and the purchase of new technology.
2.) ARENA Grant.
ARENA stands for “Australian Renewable Energy Agency.” It offers highly lucrative grants to companies in the energy sector.
3.) The Enterprise Solution Centre Grant.
This offers funding of up to $100,000 to support businesses in the agribusiness sector.
How Remote Workers Can Help Start-Ups Improve Their Chances of Securing Grants
It takes a lot of time and effort to look for and to secure grants. In some cases, it can feel like another full-time job on top of running your start-up.
This is where outsourcing comes in. Most start-up founders wear several hats throughout the day because they can’t afford to hire full-time workers just yet. When you outsource critical functions that don’t require major decision-making or anything to do with your USP, you can do so on a part-time and as-needed basis, and with remote workers that live in countries where an AU$ paycheck goes much further.
In turn, this frees up your time and efforts so you can focus on what really matters: securing enough funding to get your start-up off the ground.
Remote Staff has had more than ten years of experience recruiting and onboarding top Filipino remote talent. Our rich and diverse talent pool is especially helpful for SME’s looking to scale their businesses sustainably and with the least amount of risk possible.
Need a hand in launching your start-up? Give us a call or click here to schedule a callback today and let’s get started on building your dream.