Australian Grant Solutions
Australian Grant Solutions (AGS) was established in 1992 to assist Australian businesses to access the Export Market Development Grant (EMDG). Today we also consult on the Research and Development (R&D) Tax Incentive. Whether you are a small or medium business, you deserve the same government assistance that your competitors receive. The problem is, if you’re busy with the day-to-day operations of your business, you may miss an opportunity because you don’t know it’s available. Or if you submit an application on your own, you risk minimising your entitlement – getting everything right can prove challenging.
What sets us apart is the way our clients receive a larger return on the investment they make in seeking assistance. This happens because our knowledge of grants, incentives and government assistance is second to none; we are very thorough in our approach; and our applications are first class. Our fees are also success-based. This means we are working with you not for you. It’s in our best interest to maximise your grant.
Benefit from...
Awareness of the EMDG and the R&D Tax Incentive
Receiving a maximised entitlement
Being part of our trouble-free application process
About the Grant Programme
EMDG is a key Australian Government export financial assistance program. Each year it helps some 4,000 Australian small and medium enterprises (SMEs) to start or expand their export business.
The program is designed to bring benefits to Australia by encouraging the creation, development and expansion of foreign markets for Australian products. This is done by providing targeted financial assistance, for marketing and promotional activities and development of marketing skills, to SMEs and their representative organisations.
Eligible expenses include those incurred by Australians in promoting the export of goods, services, industrial property rights and know-how, which are substantially of Australian origin. Inbound tourism and education providers also qualify for EMDG support.
New Zealand is not regarded as an eligible market for EMDG purposes.
The Scheme is non-discretionary which means that if you meet the eligibility criteria and maintain appropriate supporting documentation verifying your expenditure and activities, you may be paid a grant.
Who is entitled to apply?
Any Australian resident – company, partnership, or sole trader – may apply for grants if they incur eligible marketing expenditure in seeking or developing overseas markets. Claimants must have a gross turnover less than $20m to be eligible for EMDG assistance.
Assistance for small and medium enterprises
If you are an SME, you will be able to apply for grants up to $770,000 per applicant over 8 financial years for promotional activities to market eligible products in foreign countries, or training activities to develop skills in such marketing. The 8 years do not need to be consecutive.
Grants will be available in 3 tiers, designed to provide different levels of support to you as you grow your export markets at the different stages of your export journey:
- Tier 1: for eligible SMEs who are ready to begin exporting – grants of up to $40,000 per financial year for 2 years.
- Tier 2: for eligible exporters who plan to expand their exporting – grants of up to $80,000 per financial year for 3 years.
- Tier 3: for eligible exporters who plan to make a strategic shift in their exporting business – grants of up to $150,000 per financial year for 3 years.
For Tier 1 you will need to be ready to start exporting. For Tiers 2 and 3 you will have already exported. You can apply for any tier level that suits your organisation. You do not have to progress through each Tier.
For what products can I apply for a grant?
A product must be substantially of Australian origin to be eligible for an export grant. Eligible products and services include:
Goods
- Goods made in Australia
- Goods made outside Australia (i.e. – manufactured overseas) which have significant net benefit to Australia (special conditions apply)
Services
All services (external and internal) are eligible for EMDG with the following exceptions:
- migration to Australia, including proceedings or actions to enter or remain in Australia
- adoption, custody or welfare of a child
- proceedings about the maintenance of a person
- proceedings under the Family Law Act 1975
- identification, procurement, lease, sale or purchase of assets in Australia (whether tangible or intangible), including cash, real estate, stocks, options or shares
- protection, operation or maintenance of assets held in Australia
- compliance with the laws of Australia
- prostitution
- pornographic material, including pornographic material in publications, films, computer games, or accessible on the internet
- activities or products that are unlawful
- provision of a gambling service by a person not licensed under an Australian law to provide the service
- any service supplied in Australia to foreign tourists that is not a tourism service · selection or recruitment of students to work in Australia.
Intellectual Property
To be an eligible product, intellectual property or know-how must be as follows:
- for intellectual property rights relating to a trade mark, the trade mark was first used in Australia, or has increased in significance or value because of being used in Australia
- for intellectual property rights relating to any other thing, or for know-how, the thing, or know-how, is the result, wholly or substantially, of research or work done in Australia.
Eligible Software
To be an eligible product, software must be a work in which copyright subsists, and the work is the result, wholly or substantially, of research or work done in Australia.
We will meet with any potential applicant to determine EMDG eligibility and discuss the application process.
Overview
The R&D Tax Incentive allows companies to claim a deduction from their taxable income of $1.50 (or $1.33 for companies with a turnover of greater than 20 million) for every $1 spent on eligible R & D activities. It is administered jointly by the Industry Research & Development (IR&D) Board (through AusIndustry) and the Australian Taxation Office (ATO).
Companies must be registered with the IR&D Board in order to claim the incentive. Registration is available to any eligible company incorporated in Australia, and applications must be lodged annually within ten months of the end of the company’s year of income.
Making a claim is a two-stage process. An application for registration must first be made with AusIndustry. On receipt of a registration number, the R&D Claim entry for your company tax return can then be lodged.
Who is entitled to apply?
All companies incorporated in Australia and undertaking eligible R&D activities are entitled to apply.
Trust partnerships and trusts cannot apply. Companies that are acting in the capacity of a trustee or nominee (other than in the capacity of a trustee of a public trading trust) cannot claim the R&D Tax Incentive.
Definition of R&D
A broad outline of what R&D means according to the Income Tax Assessment Act and the AusIndustry guidelines is mentioned below. Please note that this is just an overview and a full definition of what R&D means is actually more thorough than this. Should you need further clarification and wish to discuss your business activities further, then please call one of our consultants.
Under section 73B of the Income Tax Assessment Act 1936, the legislative definition of R&D is as follows:
Research and development activities means:
(a) systematic, investigative and experimental activities that involve innovation or high levels of technical risk and are carried on for the purpose of:
- acquiring new knowledge (whether or not that knowledge will have a specific practical application); or
- creating new or improved materials, products, devices, processes or services; or
(b) other activities that are carried on for a purpose directly related to the carrying on of activities of the kind referred to in paragraph (a).
To establish an activity was experimental there needs to be evidence that the tests were undertaken to discover something unknown, to test a hypothesis (that is, in the context of the R&D Tax Incentive, a proposed solution to a technical problem) or to find something out, not simply to confirm something already known or to demonstrate an already known fact.
Companies need to show that the R&D activities were undertaken with the main purpose of creating new knowledge, or new or improved materials, products, devices, or processes. It is not necessary to actually achieve the purpose.
We will meet with any potential applicant to determine the R&D eligibility and assist in maximising their R&D Tax Incentive claim.
