Is your business leaving cash on the table? By not taking advantage of government grants and incentives which may be available to your business are you turning your back on financial assistance that Federal and State governments are offering?
Incentives for business owners are not limited to small business tax concessions; incentives to purchase capital assets and get immediate depreciation write-off; or grants for Research and Development (R&D).
Your business can access Federal and State government grants and incentives to help you:
- Reduce the cost of hiring new employees - not just apprentices
- Reduce payroll tax
- Train your employees
- Develop export markets for your products
- Assist with Research and Development
- Raise capital from investors
- Recover form disaster
- Adopt more competitive and sustainable environmental practices
- Commercialise the innovation of new products
- And more...
You might be surprised to find out just how many different government grants and assistance programs are on offer. Depending on your specific business and the markets you supply to, different grants might be applicable.
However, many people would argue that the availability of and access to these grants are a well-kept secret.
The process of finding information on these incentives can be very time consuming and confusing. And if you may be eligible you will need to carefully review the information for each grant and then assess whether it may be appropriate.
There is a better way. Pretium Solutions use a grants selection tool to quickly locate and supply details of any government grants or incentives for which your business may be eligible.
We will identify any possible government grants, loans or incentives for which your business may be eligible and produce a pending list of potential grants, loans or incentives. By answering some additional questions, we can quickly determine if your business may be eligible for a grant. We will produce a report for you outlining the grants that you may potentially be eligible for.
For each grant we can provide more information on the application process, eligibility, obligations and benefits.
We can assist you with the application process for each grant including preparation of any supporting financial projections or reports.
Keep in mind there's no guarantee a grant application will be successful.
The cash payment or the tax benefit provided by most grants and incentives will not be received by your business until a number of months after you have undertaken the eligible activities that qualified for the grant or incentive.
The benefit from the tax deduction for the instant write-off for capital assets costing less than $30,000 by a small business is not received until the business lodges their income tax return. This could be up to eleven months after the end of the year.
The R&D Tax incentive which provides for a 45% refundable tax offset (that's equivalent to a 150% deduction) for eligible entities with an aggregated turnover of less than $20 million per annum, or a 40% non-refundable tax offset for all other eligible entities is paid on assessment of the company's income tax return.
The Small Business Grant - NSW which is designed to encourage the nearly 650,000 small businesses in NSW that do not pay payroll tax to hire new employees and expand their business pays $2,000 as a one-off payment per new position and when claimed is paid on the twelve-month anniversary of when the position was created.
The Export Market Development Grant pays 50% of expenses incurred on eligible export promotion activities, above a $15,000 threshold, up to a maximum of $150,000 where registration is approved within 4 months after the end of the financial year.
It's important that your business always keeps adequate records throughout the year to show it carried out eligible activities in incurring the claimed expenditure for any grant.
As the cash benefit can be received a year or more after you physically spend the money, planning is essential.
- Plan what your business will be doing
- Identify if there are any government grants or incentives available for the activities you are committing to
- Find out and understand the eligibility conditions, the application process and the documentary evidence equired to support your claim
- Prepare and submit your application before the due date
- Lodge your final claim
Accessing government grants and incentives should be part of your overall business plan. Your cash flow projections should include all of the spending you will undertake as part of the eligible activities. Unless the grant or funding provides for an up-front payment or loan, you should not rely on the grant or incentive.
In all cases your business should be able to fund the eligible activities from operating cash flow, or other bank loan and personal contributions.