1. Accessing Grants
(like a professional)
Bruce Patten
Pattens Group

2. A$50 Billion Lottery
 Chance of winning 1/25million
 Buy a ticket?
 Buy los of tickets?
 Tell family and friends?
 Use a system to chances
 Take all winnings or leave some
 How much investment is it worth?

3. Grants?
 Fairy tales or legend?
Once upon a time…..
 Endangered species?
 Worthless or priceless?
 Challenging quest?
 Rainbow’s end?
 Cost you more than you get.

4. Your business priority is….
1. Increased Sales
2. Lower Expenses
3. Additional Cash
4. More Profits
5. Government Grants
6. All the above
7. All the above and more

5. Business Grants
Fall into 2 broad categories:
 Selected Industries
TCF, Medical, Steel, Cars, Defence,
Clean Tech, Agriculture and Farming
 Approved Activities
Manufacturing, Export, Innovation,
Business efficiency, regional, equity.

6. GST Refund
 Expenses exceed income
 BAS on accruals basis
 Refund of GST before paid
 Tax Return can be Cash

7. Research & Development
What is R&D? (Note the “D” word)
 Trial and error (novelty)
 Technical risk (failure)
 Financial risk
 Ownership of Results

8. R&D Tax Incentive
Scheme’s objective:
Encourage high risk R&D
 Prohibitive cost
 Uncertain return
 Benefit Australian economy

9. R&D Tax Incentive
 Refund of 45% available
 Available to Companies
 No maximum threshold
 Minimum claim $20k
 Claim annually in arrears
 Must register before lodging tax return

10. R&D Tax Incentive
Eligibility criteria:
 Applicant must be:
- Australia resident corporation
- Foreign Corp with perm Australian
establishment and tax Agreement
- Public trading trust with Corp trustee
- Tax Exempt Entities ineligible

11. R&D Tax Incentive
Other eligibility requirements :
 on own behalf
 exploitation of results
 carried out in Australia
 Australian content
 Overseas content
 claim within 10 months end FY

12. R&D Tax Incentive
Eligible R&D activities must be
on claimant’s own behalf and either
 Core R&D
 Supporting R&D

13. R&D Tax Incentive
Exclusions
 Market research, testing, feedback
 Quality Control
 Exploration for minerals
 Minor mods or changes
 Pre-production activities
 Patenting
 Reverse Engineering
 Internal management software

14. R&D Tax Incentive
Software Rules
 Same eligibility test
 Can be ‘in-house’ or single use
 Not primarily for internal administration
 Not site specific
 Would proceed anyway
 Limited public benefit

15. Commercialisation Australia
Scheme objective:
 Fund commercialisation
 Turn ideas into success
 Provide tailored assistance
 Guidance
 Case managers
 Access to mentors

16. Commercialisation Australia
 Skills and Knowledge $50k
 Proof of Concept $250k
 Early Stage Commercialisation
up to $2m
 Experienced Executives $350k

17. Commercialisation Australia
Application Process
 Pre-application – Stage 1
 Application
 Review
 Final Application – Stage 2
 Case Manager Review
 Board Decision
 Agreement

18. Commercialisation Australia
Essentials:
 Turnover less than $10m
 Turnover less than $50m ESC
 Matching Funding
 Ownership or access to IP
 Funding options rejected
 Expressions of Interest
 Business Plan

19. Commercialisation Australia
Assessment Criteria
 need for funding
 commercial potential
 market opportunity
 management capability
 national benefits

20. Commercialisation Australia
Eligible costs include:
 Labour expenditure
 Labour oncost and admin (60%)
 Contract expenditure
 Plant expenditure
 Prototype expenditure
 Intellectual property

21. Export Market Development Grant
Marketing funding assistance for:
 Export sales
 Tourism income
 Overseas sales
 No sales at all

22. Export Market Development Grant
 Over 4,000 claims annually
 Average claim $34,000
 Claims lodged July-November
 $10,000 threshold
 First claim cover 2 years
 Patents and Trademarks eligible
 Overseas travel

23. EMDG
 Capped at $150 million pa
 Scheme runs to 30 June 2015
 Minimum claim is $20,000
 Minimum grant is $5,000
 First payment of $60k payable after
NOD issued, balance by 30 June
 Claims prepared by consultants are 25%
higher than claimant prepared

24. EMDG
 Overseas representation
 Marketing Consultants
 Communications
 Tradeshows
 Free samples
 Promo material & advertising
 Patent and trademarks
 Overseas buyers
 Overseas Travel

25. EMDG
First time claimants
 Pre-registration not required
 Export ready test
 Can combine 2 years expenses
 No export sales required
 Product eligibility determination
 Small claims should be reviewed

26. EMDG
Eligible products and services include
 Tourism
 Non-tourism
 IP, Know how
 Trademarks
 Services
 Overseas manufactured goods

27. EMDG
Ineligible Expenses
 Sales related activities
 Promotion to New Zealand, Iran and
North Korea
 Promotion of pornographic material
 Wages (except samples)
 Unpaid expenses (not acquitted)
 Agents commission

28. EMDG
Grant Calculation
 Minimum expenditure $20,000
 Minimum grant $5,000
 Maximum claim is $150,000
 Threshold of $10,000
 Grant lesser of 50% of eligible expenses
or percentage of export sales
 Maximum 7 claims

29. EMDG
Sales Performance
Year 1 0%
Year 2 0%
Year 3 40%
Year 4 20%
Year 5 10%
Year 6 7.5%
Year 7 5.0%

30. Enterprise Connect
 Turnover over $1m less than $20m
 Range of industries
 Free Diagnostic
 Business Assessment Report
 Grant of $20,000
 Consultant services – your choice

31. Australian Technology Showcase
 Leading edge technology
 Online application
 Pre-approved funding
 $20,000 export orientated
 ATS Logo
 International Showcase

32. Clean Tech Investment Program
 Manufacturing sector
 Funding 50% of new equipment
 Funding 50% of installation
 Lower carbon footprint
 Energy savings
 Food and foundries

33. Clean Tech Innovation Program
 Develop innovation
 Reduce carbon footprint
 Energy savings
 No double claim

35. Tech Vouchers
Vouchers of up to $15,000
 Matched in cash or kind
 Any NSW based Research Org’n
 Valid for 6 months
 Support CA, ARC or EC Researchers in
Business applications

36. Australian Growth Partnerships
CSIRO Investment Funding in :
 Climate Adaptation & Energy Transformed
 Food Futures
 Future Manufacturing
 Light Metals
 Minerals Down Under
 Preventative Health
 Water for a Healthy Country
 Wealth from Oceans

37. Grand Challenge
 Bill Gates Foundation
 Competitive worldwide
 Varying focus
 Global relevance
 $100,000 - $1m
 Staged assessment process

38. Further Information
 www.pattens.com
 www.business.gov.au
 www.ausindustry.gov.au
 www.austrade.gov.au
 www.grantslink.gov.au
 www.ourcommunity.com.au

39. Summary
 Know the rules
 Plan, plan and plan
 Be creative but honest
 Research successful applicants
 Provide the information required
 Tell them everything except..
 Use qualified experienced professional

40. Contact Details
Pattens Group Pty Ltd
Suite 611, 1c Burdett St, HORNSBY
PO Box 838, HORNSBY NSW 1630
P: 02 9476 1555
E: grants@pattens.com
www.pattens.com or
www.pattensgroup.com.au