Using Small Business Grants to Employ Staff In Australia
The creativity, services, and job creation produced by small businesses are essential to the economy. To promote small business service offerings, the state and other stakeholders provide a wide range of financial possibilities, including grants. Big firms depend largely on small businesses to supply the resources needed to complete tasks that they are unwilling or unable to take on.
The Australian Government estimates that small firms, which are defined as businesses with less than 20 employees, make up over 98% of all enterprises and contribute 35% of our GDP. Small business is therefore big business across Australia.
Australia continues to keep a strong reputation for making a lot of funding available to business owners at the beginning of their cycle in addition to more established firms. Everywhere in Australia, small business grants are accessible to those that are eligible and meets the program criteria. For the government to decide, applicants must apply through their local state or region in Australia.
It would be wise to take into account the information covered below when attempting to determine what government grant is the best fit for your business.
Explanation of Small Business Grants
Let’s take a closer look at what a “grant” is before we begin discussing the many kinds of small-scale business grants available in Australia. In essence, it’s an amount of money that is donated to a business or non-profit organisation and doesn’t have to be paid back. Small business grants are a very alluring kind of start-up financing for several start-ups and SMEs because you are not required to forfeit any equity in your organisation.
Small company awards typically have fairly precise conditions. To be eligible for the grants, you must reside in a particular area of the nation, operate a particular kind of business, work in a particular industry, or serve a particular segment of the population. For instance, the Indigenous Business Development Program NT is accessible to indigenous people living in the Northern Territory who want to launch a new business or expand an existing one.
Australia has a wide range of small business incentives, both in terms of quantity and content. While others could be worth millions, some are just worth a few hundred dollars. In either scenario, there will probably be a lot of enterprises seeking the same funding pool, making the application process challenging and competitive. Because of this, it’s a smart option to concentrate your efforts on a few grants that are ideal for your company and devote a lot of time to crafting a strong application.
When it comes to grants, there are primarily two types of funding: private and governmental.
Things to Consider
There are a few important things to take into account before beginning the grant application process if you are considering it for your small business.
Don’t put all your time into one application because your business can qualify for more than a single type of award; there might be better options available.
Frequently, you must provide these together with your application. Spend some time making sure you have every necessary documentation and information on hand.
Send in your application as soon as you can. Then, if something is incorrect, you have the chance to make any errors right.
Ask For Assistance
It may be to your greatest advantage to hire a professional to manage the applications in some circumstances because many applications are susceptible to red tape and bureaucracy and deal with lengthy lists of requirements and regulations.
If you qualify for government subsidies, private companies will be more willing to cooperate with you because they support and legitimize your firm.
Which Grant Type is Best For Me?
There are numerous types of grants available, including those from the federal, state, and private sectors as well as from businesses and tax incentives. What kind of industry or business you are in, how much money you need, what you plan to do with it, and how much research you do will determine which type is best for your company.
Grants to Employ Staff and expand your business
1. Restart Program
This program offers pay subsidies to encourage firms to support the hiring and retention of workers beyond the age of 50.
2. Kick-Start CSIRO
This relatively new incentive, introduced in 2017, provides up to $50,000 for regional start-ups working with the CSIRO to do research and testing for a new product or service. Being a GST-registered business with a revenue of $1.5 million sometimes less per year for the last two fiscal years is a requirement for eligibility.
3. Tax Incentive for Research and Development (R&D)
The tax credit against R&D investment is available to businesses with annual revenues under $20 million, and it was created to promote innovation even in the smallest businesses.
4. Commercialisation Program for Entrepreneurs
This plan promotes original thought through production and competition. It has four subcategories that all include funding and mentoring to support business expansion and competition in new markets.
Certain Grants From State and Local Governments
Here are a few of Australia’s most well-known awards from the state and municipal governments.
- NSW: Small Business Grant totaling up to $20,000 promotes hiring by small firms. The Sydney City Council also provides business incentives to promote company growth and involvement in the neighborhood and way of life.
- VIC: Business owners are encouraged by the VIC to Boost Your Enterprise Vouchers initiative to expand their operations, hire staff, and improve accessibility and profitability.
- QLD: Grants are available to promote small businesses, tourism, growth, and innovation.
- SA: Grants from the government are available for start-ups, commercialisation, and regional growth.
- WA: Grants support event sponsorship, small business development, and specialised sector funding possibilities.
- Grants and scholarships are offered by the governments of Tasmania and the Northern Territory to help businesses, communities, and individuals in a variety of industries.
Did You Know?
- In Australia, there are over 700,000 small and medium-sized businesses much like yours. Do not be reluctant to apply for government grants as many of these opportunities are missed out due to unawareness.
- 60% of small business loan bids are reportedly turned down annually, according to statistics. The two most frequent explanations are that the borrower overstated the firm or that the company doesn’t suit the bank’s “risk profile.”
- One of the most frequent complaints raised by the startups and the small business sector is shortage of financial assistance and support from banks.
Remember that there will be eligibility requirements to complete while looking for funding and applying for it. Consider creating a network of allies to help you increase your expertise and experience in this field so that you are as ready as you can be when the time comes.
For more information on grants and assistance programs, call us now and speak to one of our advisors who will be happy to help you.