The importance of innovation and development to the productive economy has long been understood by economists and business leaders and is part of modern Australian industrial policy. Supporting this policy are a range of government grants and incentives that help offset the localised costs of R&D and innovation, and incentivise businesses to develop new technology, products and solutions.
The Federal Government has two key schemes that support Innovation and R&D through to commercialisation:
State Governments also have a wide range of schemes to support innovation, as well as other business support such as assisting businesses to hire new workers.
The R&D Tax Incentive is a tax benefit available to any business that meets the requirements, there are, however, strict compliance requirements and ATO audits do occur.
Grants can be a useful source of funding but they have several challenges associated with them:
On balance, any decision to embark upon an innovation grant application or a R&D Tax Incentive claim should be made thoughtfully having regard to the time and effort and cost/risk associated with the process.
Feel free to call Andrew Morgan on (07) 4052 0800 to discuss how this may impact your business.