Grants for Innovative Projects
Innovation Grants are intended to test, create, and demonstrate innovative solutions, no matter how big or small, whether it involves testing or expanding a new initiative, delivering a services model, social enterprise, or producing forward-looking strategy and research for organisational transformation.
Pushing limits or financing the testing of hypotheses and ideas are both examples of how to finance innovation. Funding innovation frequently entails supporting projects that wouldn’t otherwise have a representation. Some actions can be taken to control the risk associated with an innovative initiative, even though it does not always involve risk.
The Product Innovation and Research sector grants offered by the Federal government to SMEs is fairly diverse. While the federal government provides funding for the majority of these programs, certain state governments also offer incentives to local firms.
We will go through a few of the grants offered in the Business Innovation and Research sector in this part, along with the criteria for applying.
The primary objectives include the following outcomes, which are supported by innovation grants:
- Housing Affordability and Homelessness
- Jobs, a Sustainable Economy, and Inclusiveness
- Healthy Communities that are Climate Resilient
The 2022/2023 Innovation Award cycle will support the following two grant types:
Grants for Seed Innovation
The investigation, testing, or launching of a novel concept or strategy is supported by these funds. This also covers funding for:
- Testing a novel theory or approach that could result in the advancement of a significant social issue or an enhancement to a service.
- Conducting research to better comprehend a topic or problem.
- Identifying best practices, providing information for program or policy creation, or encourage charitable giving.
- Financing for a social enterprise’s early stages of development
Note: In subsequent years, Scaling-Up Innovation grants may be considered for Seed Innovation grants that have a significant effect.
Grants for Scaling-Up Innovation
These funds assist in the growth or duplication of a tried-and-true innovation that has the potential to have a profound impact on a larger community or set of interconnected systems. This work may consist of:
- Building social entrepreneurship or scaling up an entirely new service strategy
- Using a fresh strategy to enhance the efficiency and/or quality of services
- By collaborating in different ways, such as through a partnership, merger, or other kinds of collaboration, you can increase your influence and/or the effectiveness of your services.
- Gaining comprehension of a new problem or subject through practical research (for example, research with practical applications.)
Innovation Grant Funding
- Grants for Seed Innovation: up to $50,000 over one year.
- Scaling-up $300,000 for 2 years in the form of an innovation grant, with a maximum of $150,000 annually.
Organisations qualified to apply under the Impact Area for an Inclusive, Sustainable Economy and Jobs include:
- Must be recognised as a tax-exempt organisation (TCC).
- Charities based in Australia, especially those in Victorian, New South Wales, and the Australian Capital Territory
Organisations that are qualified to submit applications under the Healthy and Weather Resilient Societies and Homelessness & Community Housing Impact Areas are:
- It is necessary to have endorsements as a Deductible Gift Recipient (DGR) and a Tax Concession Charity (TCC), as defined by Item 1 of the chart in Section 30-15 within the Income Tax Act 1997.
- Australian nonprofit organisations with a Victoria registration and a focus on Greater Melbourne.
Grants Funded by the Federal Government
Funds to Hire Professional
Among the grants in this category supported by the Federal government, offers SMEs a matched funding of up to $50,000 to engage research professionals to help them expand their enterprises. Businesses need to have an Australian Company Registration and GST registration to be eligible for this subsidy. The turnover in the application year and the two years prior should have been less than $1.5 million. Businesses must be fairly recent and not older than three years in registration.
New Products Management Cost
Another grant made available by the Australian law allows SMEs to apply for up to $1 million in equivalent funding to assist them in covering costs associated with commercialising new products or processes and bringing them to market. Businesses that wish to apply must be based in Australia and registered as for-profit organisations. As part of this award, SMEs may also hire professionals for advice and portfolio services.
Product Innovation Funds
Another grant from the Australian government goes to SMEs working on product innovation and includes a matched funding amount of up to $50,000 and a qualified facilitator’s services. The professional facilitator’s role is to assist the company in determining its research needs and, if necessary, connect it to the appropriate business specialists so that it may specify the scope of its project. To qualify for this grant, a business must:
- Should be authorised to operate as a for-profit entity.
- Should be non-tax exempt and GST registered
- Should have an Australian base
- The ideal annual revenue range is $1.5 to $100 million.
Grants for Research and Innovation
In addition to the federal funds described above, some states offer significant financing to regional SMEs in the domain of product innovation and research. Local SMEs can access investment capital ranging from $125,000 up to $2.5 million with one State government-funded award. This funding ought to be used towards the development or research of novel goods or services. The business must be located in Australia, and the majority of its resources and personnel must come from the state offering the grant. Additionally, organisations that are applying should already be working on developing cutting-edge goods or services.
Local SMEs can apply for a matched funding grant of up to $200,000 through another State Government-funded program to commercialise cutting-edge goods, services, and processes. The applicant should be a startup or an established company, registered for GST, situated in the state offering the award, and employ less than 50 people.
The grants described above are just a small sample of the multiple grants that the state and federal governments offer to raise the calibre of SMEs operating in the Innovation and Research sector.
Speak to one of our advisors now if you would like additional information about the numerous grants available in your industry and, more specifically, grants specific to your state, along with their qualifying requirements.