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Australia Government Grants & Incentives Guide

Australian government grants and business incentives. The guide covers: the R&D Tax Incentive — the 'R&D Tax Incentive' is the 'tax offset' for the 'eligible entities' that carry on the 'R&D activities' (the 'refundable offset at 43.5% for the SMEs' and the 'non-refundable offset at 38.5% for the large companies') — see the separate R&D Tax Guide; the Export Market Development Grant (the 'EMDG') — the 'EMDG' is the 'grant' administered by the 'Austrade' (the 'Australian Trade and Investment Commission') for the 'eligible exporters' that 'incur the eligible export promotion expenses' (the 'overseas marketing', the 'trade fairs', the 'overseas travel', the 'market research', the 'advertising'); the 'EMDG' covers up to 50% of the 'eligible expenses' above the 'first $15,000'; the 'maximum grant' is $80,000 per year (per 'eligible exporter'); the 'EMDG' is the 'assessable income' for the 'tax purposes'; the state government grants — the 'state governments' (the 'NSW', the 'VIC', the 'QLD', the 'WA', the 'SA', the 'TAS', the 'ACT', and the 'NT') offer the 'business grants' and the 'incentives' for the 'small businesses', the 'start-ups', the 'manufacturing', the 'innovation', the 'employment', and the 'regional development'; the 'state grants' include: (i) the 'NSW Small Business Grant' (up to $5,000 for the 'small businesses'), (ii) the 'VIC Business Support Grant' (the 'business support and the recovery grants'), (iii) the 'QLD Business Grant' (the 'Business Development Grant' up to $15,000), (iv) the 'WA Small Business Grant' (the 'SME grant' up to $25,000); the 'state grants' are generally 'assessable income' for the 'recipient'; the employment incentives — the 'employment incentives' include: (i) the 'JobMaker Hiring Credit' (the 'payment to the employers for the eligible additional employees' under the 'JobMaker Scheme' — the 'JobMaker' is NOT available from the '1 October 2022' but the 'employers may still receive the 'final instalments''), (ii) the 'Apprenticeship Incentives' (the 'Boosting Apprenticeship Commencements (BAC)' and the 'Australian Apprenticeship Incentives (AAIS)' — the 'wage subsidies' and the 'incentives' for the 'employers who hire the apprentices'), (iii) the 'Parental Leave Pay' (the 'government payment to the eligible parents' under the 'Parental Leave Pay Scheme'); the tax treatment of the government grants — the 'government grants' are generally 'assessable income' for the 'recipient' under the 'Section 6-5 of the ITAA 1997' (the 'ordinary income') — the 'grant' is 'assessable' even if the 'grant' is intended for the 'capital purposes' (the 'capital grant'); the 'grant income' must be 'reported' in the 'tax return' as the 'other income' or the 'government grant income'; the 'expenses paid from the grant' are 'deductible' if the 'expenses are incurred for the income-producing purposes'.

Export Market Development Grant (EMDG)

  • 50% of eligible expenses: The 'EMDG' covers up to 50% of the 'eligible export promotion expenses' above the '$15,000 threshold'. The 'maximum grant' is $80,000 per year.
  • Eligible expenses: The 'overseas marketing', the 'trade fairs', the 'overseas travel', the 'market research', the 'advertising', and the 'promotional materials' for the 'export of the Australian goods and services'.
  • Assessable income: The 'EMDG grant' is 'assessable income' in the 'tax return'.

For the R&D Tax Incentive and the research offset, see our R&D Tax Guide →.

State Government Grants

  • NSW Small Business Grant: Up to $5,000 for the 'small businesses' (the 'businesses with the turnover below $2 million') for the 'business advice' and the 'digital capability'.
  • VIC Business Support: The 'VIC government' offers the 'Business Support Grants' and the 'Regional Business Support Grants' for the 'business recovery and the resilience'.
  • QLD Business Grant: The 'Business Development Grant' up to $15,000 for the 'business planning', the 'marketing', and the 'digital development'.

For the starting business and the business structures, see our Starting a Business Guide →.

Employment Incentives

  • Apprenticeship incentives: The 'Australian Apprenticeship Incentives Scheme (AAIS)' offers the 'wage subsidies' and the 'incentive payments' for the 'employers' who 'hire the apprentices'.
  • Parental Leave Pay: The 'Parental Leave Pay' is the 'government payment' at the 'National Minimum Wage' for up to '20 weeks'.

For the hiring employees and the employer obligations, see our Hiring Employees Guide →.