Critical Minerals & High-Tech Metals Activation Fund – Round 1 | Stream 2

High-Tech Metals & Critical Minerals

NSW Critical Minerals & High-Tech Metals

Round 1 | Stream 2 – Enabling Project Infrastructure

Newsletter | October 5, 2022


 

The NSW Government is unlocking this potential through the $130 million Critical Minerals and High-Tech Metals Activation Fund. The fund supports investment across the entire value chain, from exploration and processing to activating new supply chains and commercialising new technologies and applications.

Stream 2 – Enabling Project Infrastructure is a competitive process which aims to co-fund strategic infrastructure in the critical minerals and high-tech metals sector that is needed to:

  • expedite the development of investment-ready projects nearing construction and operation
  • address infrastructure blockages with potential multi-user benefits
  • support the delivery of key infrastructure needed to accelerate the industry in regional NSW

Funding will be delivered to:

  • unlocking project blockages to expedite project delivery through strategic infrastructure investment
  • accelerating the development of projects as an enabler for future investment
  • supporting new capacity in critical minerals processing
  • supporting scale-up and commercialisation of research and development, including emerging technologies and markets, and supporting new industry applications
  • enabling growth in the sector, securing a local supply of valuable critical minerals and high-tech metals for future use including the transition to a clean economy
  • positioning regional NSW as the leading jurisdiction in the critical minerals and high-tech metals sector, attracting investment to the entire critical minerals supply chain
  • promoting exploration and discoveries, creating an ongoing pipeline of critical minerals and high-tech metal resources in regional NSW
  • developing local skills and addressing skills gaps to support diversification within the mining sector.

 
 

FUNDING AVAILABLE & TIMELINE

  • Grant amount: From $2 million and $10 million (excluding GST) for eligible activities
  • Application opened: 26 September 2022
  • Application closes: 31 October 2022, 5pm
  • Application notifications: 12th December 2022
  • The streams will be delivered independently of each other and are not sequential – applicants to Stream 2 are not required to have submitted an application for Stream 1.

 
 

WHO CAN APPLY?

Applicants must hold an Australian Business Number (ABN) and must operate, or be developing a mineral project, or conducting research within the critical minerals and high-tech metals industry, or as part of the critical minerals/high-tech metals supply chain, and be one of the following:

  • a company incorporated in Australia
  • a company limited by guarantee
  • an incorporated trustee on behalf of a corporate trust
  • an incorporated association or co-operative
  • a corporate Commonwealth entity, or State and Territory business enterprise which undertake publicly funded research
  • a Publicly Funded Research Organisation
  • an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006.

To be eligible to receive funding, applicants must:

  • be registered for GST
  • operate, or be developing a mineral project, or conducting research within the critical minerals and high-tech metals industry, or as part of the critical minerals/high-tech metals supply chain
  • demonstrate financial and technical capacity to deliver the proposed studies
  • provide evidence of their $20 million Public Liability Insurance or confirmation that a Public Liability Insurance Policy of at least $20 million will be taken out prior to the execution of the Funding Deed.

Applications from consortiums are encouraged. An organisation must be appointed as the lead applicant and satisfy the eligibility criteria. The lead applicant is authorised to act on behalf of and bind each member of the consortium and, if the application is successful, enter into the funding deed and be ultimately responsible for delivering the project. The application must include a letter of support from each organisation involved in the application.

 
 

EXAMPLE PROJECTS

Examples of eligible projects include:

Transport infrastructure including:

  • off-site and on-site road and rail upgrades and modifications
  • heavy-haulage route upgrades
  • road widening
  • pavement strengthening.

Power infrastructure, including:

  • conversion to renewable energy sources
  • substation installation
  • extension or new powerlines
  • installation of a solar farm
  • installation of large-scale power storage facilities.

Water infrastructure, including:

  • water treatment plants
  • water supply pipelines
  • processing infrastructure including trial processing plants
  • mine waste processing plant facilities
  • establishing or expanding a processing, pilot, or demonstration plant
  • environmental protection infrastructure including fencing, but excluding rehabilitation costs
  • Modifications/additional circuits to processing facilities

Examples of ineligible infrastructure include:

  • site offices
  • housing or worker accommodation camps
  • tailings dams or tailings storage
  • mine development

 
 

ELIGIBLE COSTS

Eligible costs may only be incurred after both parties have executed the funding deed and before the completion date, such as:

  • infrastructure capital costs and civil costs
  • development, upgrade, or expansion of enabling project infrastructure, and associated utilities or civil works
  • purchase and installation of fixed plant required to commission infrastructure (new or upgraded)
  • costs for technical, project management and direct labour costs of employees who are directly engaged on the project, to a maximum of 20% of the total project cost
  • contractor costs to deliver enabling infrastructure by a third party outside of the applicant’s organisation, excluding individuals who are recognised as an employee
  • contingency, to a maximum of 25% of the total project cost
  • reasonable travel expenses incurred to deliver the project.

 
 

NSW Government Critical Minerals and High-Tech Metals Priority List

Critical minerals are metallic or non-metallic element that are essential for the functioning of our modern technologies, economies or national security and there is a risk that its supply chains could be disrupted. High-tech metals are those metals that support the rapidly growing high-technology industries, which are fueled by consumer demand for a high-tech, connected and environmentally sustainable future

View the list of priority Critical Minerals and High-Tech Metals here

More Information

Stream 2 Guidelines

Stream 2 FAQs

 

For further tips for lodging your Critical Minerals and High-Tech Metals claim,
Give us a call or schedule an assessment


 
 

Services
Ryan can assist with services such as:

  • Scope your potential to claim various grant programs
  • Assist with the preparation and lodgement of grant applications
  • Review or provide a health check on your internally prepared grant applications
  • Establish record-keeping practices as required under various grant programs
  • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
  • Keeping industry informed on all new Government policy and grant initiatives

Don’t hesitate to give us a call or schedule a free assessment.

Circular Plastics Program Round 1 ♻️

Circular Plastics

NSW Circular Plastics Program Round 1 ♻️ – New Opportunity

Newsletter | September 28, 2022


 

The Circular Plastics Program provides new grant funding opportunities under the $10 million Circular Materials Fund (CMF). The CMF was created to support businesses in the transition to better plastic products and increase the recycling rate of plastics in NSW. This transition is a key action of the Waste and Sustainable Materials Strategy 2041 and NSW Plastics Action Plan

The objectives of the CMF are to:

  • reduce the amount of virgin plastic used
  • reduce the amount of hard-to-recycle plastics used
  • increase the amount of recycled plastic in products
  • catalyse partnerships between producers, end users and the resource recovery sector.

 
 

 
 

The Circular Plastics Program will provide two streams of funding:

 

STREAM 1 FUNDING: Sole applicant projects

Sole applicant projects Stream 1 provides funding for sole applicants to target the ‘make’ phase of the product life cycle. This may include projects which:

  • alter or adopt innovative product design (e.g. new designs, moulds, forms, products)
  • improve manufacturing processes (e.g. through new equipment, material inputs)
  • increase recycled content manufacturing capacity
  • generate additional demand for recycled content
  • reduce the use/manufacture of virgin or hard-to-recycle plastics
  • reduce the generation of plastic waste. Projects must, as far as practicable, demonstrate viable end-markets for project outputs and benefits to NSW, including employment, infrastructure investment, environmental and social
 
 

STREAM 2 FUNDING: Collaborative partnership projects

The objective of Stream 2 is to catalyse partnerships between producers, end users and the resource recovery sector that will lead to improved plastics circularity in NSW. In addition to the conditions for Stream 1, the EPA expects all Stream 2 project proposals to involve strong and collaborative partnerships.

Applicants are encouraged to develop partnership projects with an emphasis on end-to-end supply chain collaboration. Proposals should aim to show enduring partnerships across the supply chain.

Partnerships must include a lead applicant at the ‘make’ phase that has fewer than 200 FTEs and a minimum of two other organisations. Project partners may be of businesses of any size, including large businesses (>200 FTE).

Partners may include, but are not limited to, product designers, recyclers/re-use facilities, waste collectors, end users, and tertiary/research organisations. For example, entities currently manufacturing plastic products may partner with those that design, collect, reprocess and/or re-use the material.

Partnership agreements may be demonstrated through a letter of support from the partnership organisation specifying the nature of support and their role in the project. Project management roles, responsibilities, funding contributions (in-kind and cash) and reporting requirements must clearly defined in the letter.

 
 

TIMELINE

  1. EOI open: 23 September 2022
  2. EOI close: 11:59 pm Tuesday 17 November 2022
  3. Notification of EOI outcome for Stage 2 Applications: 1 December 2022
  4. Stage 2 application opens: 8 December 2022
  5. Stage 2 application closes: 16 February 2023
  6. Announcement of successful projects: 28 March 2023

 
 

WHO CAN APPLY?

The lead applicant must hold an Australian Business Number (ABN) and be either:

  • an Australian entity or partnership incorporated under the Corporations Act 2001 (Cth), or
  • a non-government/not-for-profit organisation (complying with the ATO’s definition) with an established legal status, or without a legal status but able to have grant funds administered by another organisation with legal status.

The applicant must also:

  • have fewer than 200 full-time equivalent (FTE) employees at time of submitting the EOI
  • operate at the ‘make’ phase of a product life cycle (e.g. product manufacturing and design)
  • hold the required insurance and public liability coverage, including:
    • public liability insurance to the value of at least $20 million
    • workers compensation insurance as required by all relevant laws.

 
 

FUNDING AVAILABLE

Stream 1: Sole applicant $100,000–$500,000

Stream 2: Collaborative partnership $250,000–$750,000

  • Applicant co-contribution Projects require a matched co-contribution from applicants.
  • Co-contributions can be financial (cash) or in-kind.

At least 50% of the co-contribution must be cash contribution. For example, government contribution of $100,000 needs to be matched with a minimum $50,000 cash investment from applicant; the rest can be in-kind contribution.

The co-contribution must be itemised in the application budget (required in the Stage 2 detailed application). Applicants can (and are encouraged to) contribute more than the minimum 50% cash contribution as part of their commitment towards the project costs. Funding received from other government grants (such as Remanufacture NSW or other recycling infrastructure grants) cannot be included as the co-contribution.

For Stream 2 (Collaborative partnership) projects, co-contributions (cash and in-kind) can come from all project partners and must be identified in the application budget.

 
 

FUND OBJECTIVES

The key objective of the CPP is to reduce barriers and maximise opportunities for improved circularity at the ‘make’ phase of the plastic product life cycle.

To achieve this, funded projects must undertake at least one of the following:

  • reduce the amount of virgin plastic used
  • increase the amount of recycled plastic in products
  • reduce the amount of hard-to-recycle plastics used
  • catalyse partnerships between producers, end users and the resource recovery sector

 
 

WHAT WILL BE FUNDED?

Funding under both Stream 1 and Stream 2 of the CPP could be used for project items including, but not limited to:

  • purchasing of new or modified equipment (e.g. processing lines, moulds, blending machines etc.) to increase the use of recycled plastic in the manufacture of products or sustainable alternatives
  • redesign of products, services or systems to use less plastic or eliminate waste
  • redesign of plastic products to be more recyclable
  • creating products that are durable, and can be more easily repaired or re-used
  • adopting a re-use model to replace single-use packaging
  • commercialisation of new technologies
  • replacing hard-to-recycle plastics, such as soft plastics or multi-layer products, with sustainable alternatives
  • implementing innovative circular-economy business models and practices to develop or expand end-markets for recycled plastics.

Under Stream 2, funding could also be used to fund eligible partnership projects including (but not limited to) any of the options above, and:

  • product design, recycling, reprocessing, collection and other activities directly related to the manufacturing activities (up to 50% of funding)
  • coordinating the delivery of the project across project partners (up to 15% of grant funding).

 
 

More Information

 

For further tips on claiming the NSW Circular Plastics Program,
Give us a call or schedule an assessment


 
 

Services
Ryan can assist with services such as:

  • Scope your potential to claim various grant programs
  • Assist with the preparation and lodgement of grant applications
  • Review or provide a health check on your internally prepared grant applications
  • Establish record-keeping practices as required under various grant programs
  • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
  • Keeping industry informed on all new Government policy and grant initiatives

Don’t hesitate to give us a call or schedule a free assessment.

NSW Critical Minerals and High-Tech Metals Activation Fund: Round 1 | Stream 1

Critical minerals mining

NSW Critical Minerals and High-Tech Metals Activation Fund

Newsletter | September 19, 2022


 

The NSW Government has announced a $130 million fund to accelerate investment and deliver on the NSW Government’s vision to position the state as a major global supplier and processor of critical minerals and high-tech metals well into the future. This fund will be administered by NSW Mining, Exploration and Geoscience to activate projects and support research and development.

Funding will be delivered to:

  • unlock project blockages through strategic infrastructure investment
  • enhance investment through establishing new capacity in critical minerals processing
  • support scale-up and commercialisation of emerging technologies and applications
  • drive local skills development
  • support investment in exploration to promote new discoveries for an ongoing pipeline of critical minerals and high-tech metal resources
  • facilitate the role of critical minerals as an enabler to the clean economy
  • contribute to the state outcome of mineral and petroleum industries generating prosperity, safely.

The Fund will be delivered across multiple rounds. The first round will consist of two streams. This funding opportunity only relates to Stream 1 which focuses on funding studies which are necessary to activate or scale-up projects in the critical minerals and high-tech metals sector.

Projects that support development and use of minerals that occur in NSW will be given preference.

This program is administered by Department of Regional NSW.

 
 

TIMELINE

NOW OPEN: Stream 1 – Project Activation Studies

  • Grant amount: From $300,000 to $500,000
  • Application opened: 6 September 2022
  • Application closes: 4 October 2022, 5:00 pm

 
 

WHO CAN APPLY?

Applicants must hold an Australian Business Number (ABN) and must operate, or be developing a mineral project, or conducting research within the critical minerals and high-tech metals industry, or as part of the critical minerals/high-tech metals supply chain, and be one of the following:

  • a company incorporated in Australia
  • a company limited by guarantee
  • an incorporated trustee on behalf of a corporate trust
  • an incorporated association or co-operative
  • a Publicly Funded Research Organisation
  • an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006.

To be eligible to receive funding, applicants must:

  • be registered for GST
  • operate, or be developing a mineral project, or conducting research within the critical minerals and high-tech metals industry, or as part of the critical minerals/high-tech metals supply chain
  • demonstrate financial and technical capacity to deliver the proposed studies
  • provide evidence of their $20 million Public Liability Insurance or confirmation that a Public Liability Insurance Policy of at least $20 million will be taken out prior to the execution of the Funding Deed.

Applications from consortiums are strongly encouraged. A consortium is two or more organisations who are working together to combine their capabilities when developing and delivering a study, such as a research organisation and private industry.

An organisation must be appointed as the lead applicant and satisfy the above eligibility criteria. The lead applicant is authorised to act on behalf of and bind each member of the consortium and, if the application is successful, enter into the Funding Deed and be ultimately responsible for delivering the studies. The application must include a letter of support from each organisation involved in the application.

 
 

FUNDING AVAILABLE

  • Stream 1 grants: $300K to $500K to cover the cost of undertaking studies to support early-stage projects/ new innovations etc.
  • Stream 2 grants: up to $10m are to cover enabling infrastructure costs like heavy haulage, road upgrades, rail, water and power infrastructure
  • 50% funding over the course of the 5-year program
  • The streams will be delivered independently of each other and are not sequential – applicants to Stream 2 are not required to have submitted an application for Stream 1.

 
 

NSW Government Critical Minerals and High-Tech Metals Priority List

Critical minerals are metallic or non-metallic element that are essential for the functioning of our modern technologies, economies or national security and there is a risk that its supply chains could be disrupted. High-tech metals are those metals that support the rapidly growing high-technology industries, which are fueled by consumer demand for a high-tech, connected and environmentally sustainable future

View the list of priority Critical Minerals and High-Tech Metals here

More Information

 
 

RELATED GRANTS


New Frontiers Exploration Program

The New Frontiers Exploration Program provides support to explorers to search for deposits of metallic minerals including critical minerals and high-tech metals in NSW. The program, formerly known as the New Frontiers Cooperative Drilling Program, has an extended scope to include exploration geophysics.

The program is part of the NSW Government’s Critical Minerals and High-Tech Metals Strategy to promote mineral exploration investment in NSW.

The New Frontiers Exploration Program will provide grants to successful applicants for exploration drilling and geophysical programs (Group 1, 6, and 10 minerals under the Mining Act 1992 only) that demonstrate strong prospectivity, sound financial planning and a proven technical base.

The program supports the long-term sustainability of the NSW resources sector by encouraging mineral exploration and discovery that will:

  • ensure a sustainable economic resource pipeline for the state, particularly in greenfields areas of the state
  • test new geological ideas and models and/or exploration in regions of significant cover
  • identify new critical minerals and high-tech metals deposits in NSW
  • create stronger relationships between government and industry.

 
 

TIMELINE & FUNDING

  • Grant amount: $100,000 for drilling programs | $50,000 for geophysics costs
  • Application opened: 2 September 2022
  • Application closes: 31 October 2022, 5pm AEST

Mining, Exploration and Geoscience will conduct an industry webinar on Friday 23 September at 11am on the program guidelines and application process.

More Information

https://www.regional.nsw.gov.au/data/assets/pdf_file/0016/1424032/Guidelines-for-New-Frontiers-Exploration-Program.pdf

 

For further tips for lodging your Clinical Translation & Commercialisation claim,
Give us a call or schedule an assessment


 
 

Services
Ryan can assist with services such as:

  • Scope your potential to claim various grant programs
  • Assist with the preparation and lodgement of grant applications
  • Review or provide a health check on your internally prepared grant applications
  • Establish record-keeping practices as required under various grant programs
  • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
  • Keeping industry informed on all new Government policy and grant initiatives

Don’t hesitate to give us a call or schedule a free assessment.

Clinical Translation & Commercialisation Medtech (CTCM) Program – Round 2

Medical Technology - Clinical Translation

Clinical Translation & Commercialisation Medtech (CTCM) Program – Round 2

Newsletter | September 9, 2022


 

MTPConnect’s Clinical Translation and Commercialisation Medtech (CTCM) program is a funding opportunity offered under the 2020 Early Stage Translation and Commercialisation Support Grant of the Medical Research Future Fund’s Medical Research Commercialisation Initiative.

The $19.75 million CTCM program is a four-year initiative which will identify and nurture high-quality medical device projects that have commercial potential and support their translation through early clinical trials.

By supporting the development of innovative medical devices, the CTCM program aims to improve the health and wellbeing of Australians, while also helping projects to generate commercial returns and create high-paying jobs in the medical products sector.

For the purposes of this grant opportunity, medical devices are defined by section 41BD of the Therapeutic Goods Act 1989 and further informed by the Therapeutic Goods (Articles that are Medical Devices) Specification 2014. You should refer to this definition for any regulatory purpose, including preparing your application. In summary, medical devices are defined as:

  • are used for humans
  • are hardware innovations intended to diagnose, prevent, monitor, treat or alleviate a disease or injury, or modify or monitor anatomy or physiological functions of the body
  • generally achieve their purpose by a physical, mechanical or chemical action. Round 2 applications will be assessed in a multi-step process:
    • Phase I: non-confidential Expressions of Interest (EOI)
    • Phase II: consultation interview via videoconference
    • Phase III: Full proposal Activities supported will include, but are not limited to, product development and testing, clinical trial activity and regulatory support.

Ideas and concepts, with no technical validation at the time of application, and preclinical studies, are out of scope for this funding. Projects to develop research tools (e.g., databases or animal models) in isolation are not eligible. Non-human health programs are not eligible.

There must be evidence of experimental research that has been undertaken that validates the problem or the potential of the product/solution.

The applicant must demonstrate understanding of the market/end-user.

 
 

TIMELINE

  1. EOI Open: Friday 9th September 2022
  2. EOI Close: Friday 7th October 2022
  3. EOI Outcome: Late Nov 2022
  4. Consultation: Late Nov 2022 to Mid Jan 2023
  5. Consultation Outcome: Early Feb 2023
  6. Full proposal application: Early Feb 2023 to Early Mar 2023
  7. Full proposal outcomes: Late Apr 2023
  8. Contracting: Early May 2023 to Late Jun 2023
  9. Funding term: On contract execution (24months)

 
 

WHO CAN APPLY?

For a proposal to be deemed eligible for CTCM Project Funding it must meet the following criteria:

The lead applicant must:

  • be a registered Australian based business
  • be incorporated in Australia
  • have an Australian Business Number (ABN).
  • have less than 200 employees.
  • Demonstrated capacity to match the co-contribution requirement.
  • The applicant’s project must involve the development of a medical device.
  • The applicant must provide evidence of technical and/or commercial feasibility of their product.
  • The applicant must control or have the legal right to access and use the relevant know-how and/or existing and/or potential intellectual property (IP), that will be necessary to undertake the proposed activities of the Research Project and to translate, implement or commercialise their product(s)/solution(s).
  • Applicants must meet any applicable timing, formatting, system or other similar administrative requirements from MTPConnect during the application process.

It is understood that the lead applicant may not be the group manufacturing the device prototypes or final product design. To accommodate this scenario, partnerships and collaborations with Australian medical device manufacturers are allowed. A partner is not a mandatory requirement and is not considered an advantage or a disadvantage.

If a manufacturing partner is named, that partner must satisfy the following eligibility criteria. The partner must:

  • be an Australian registered business
  • be incorporated in Australia
  • have an ABN
  • establish and operate the manufacturing facility in Australia
  • be ISO13485 accredited, achieve accreditation within the project activity period, or operate a quality management system aligned to ISO13485.

Other partner organisations can include, but are not limited to:

  • universities
  • medical research institutes
  • clinical organisations or health care providers
  • health systems
  • consumer groups
  • private research entities
  • commercial entities
  • not-for-profit organisations
  • other end-users.

A partner or collaborator is not required to provide an additional matched cash co-contribution; however, any cash or in-kind co-contribution will be considered favorably.

 
 

FUNDING AVAILABLE

Funding of between $250,000 and $1.5 million is available per project across two funding rounds (FY2022 and FY2023).

 
 

FUND OBJECTIVES

The Clinical Translation and Commercialisation – Medtech Program aims to support early clinical development of medical devices with commercial potential.

While product development, manufacture and testing will be considered eligible activities, all projects must include clinical testing of devices.

The Clinical Translation and Commercialisation – Medtech Program will:

  • Deliver consultation and commercialisation advice to guide project development and assessment
  • Facilitate access to broader NCRIS and other critical engineering, fabrication and prototyping facilities to accelerate translation of early-stage discoveries
  • Emphasise collaboration, partnering and consultation to nurture the next generation of health and medical research innovators and provide ongoing SME education
  • Employ a process of continuous evaluation, based on established commercial principles, to optimise the potential for project success and maximise return on investment.

 
 

WHAT WILL BE FUNDED?

Examples of eligible expenditure include, but are not limited to:

  • project consumables directly attributable to the delivery of project outcomes
  • salaries (whole FTEs or fractional) directly attributable to the delivery of project outcomes. The maximum salary claimable per person, including packaged components (superannuation) is limited to $175,000 per financial year. On a case-by-case basis, where it can be adequately justified, CTCM funding may support salaries greater than $175,000 per financial year
  • Commonwealth funded positions can be considered eligible to count towards an in-kind contribution. However, the Commonwealth funded position cannot also draw a salary from funds awarded through this grant opportunity for the same activity
  • labour expenditure for leadership staff (e.g., founder, CEO, CSO, CMO) is considered eligible, provided there are direct, demonstrated and monitored links to project objectives and outcomes. Salaries for leadership staff will be limited to 10 per cent of the total amount of eligible labour expenditure claimable per person (i.e., maximum $17,500). On a case-by-case basis, where it can be adequately justified, CTCM funding may support leadership salaries greater than $17,500 per financial year
  • labour on-costs are eligible. Examples of labour on-costs are employer paid superannuation, payroll tax, workers compensation insurance and leave entitlements (including paid maternity leave, sick leave, long service leave and recreation leave). These costs must be reasonable, appropriate and separately identified in the project budget
  • accessing specialist professional services including regulatory consultants, manufacturing and product development firms, clinical research organisations, technology evaluation, process evaluation, key opinion leaders or strategic stakeholders
  • accessing IP expertise as a service, freedom to operate search costs and provisional and PCT
    drafting and filing costs (or costs associated with comparable stages of IP protection e.g., trade marks, designs, copyright circuits etc.)
  • access to specialist equipment, hardware and software essential to the research
  • purchase of equipment that is essential to research capped at $80,000 in total. Justification for purchase and why the applicant(s) cannot support the expense must be provided
  • prototyping and development of a Minimum Viable Product
  • market research/testing and engaging with major customers and end-users including clinical trials
  • data procurement and efforts to obtain regulatory approval
  • international activity expenditure where it can be justified that this work cannot otherwise be performed in Australia and is critical to the success of the project. If proposed international activities and expenditure exceeds 10 per cent of the total CTCM project funding (grant funding plus co-contribution), the Department of Health must provide its approval (which will be managed by MTPConnect)
  • essential travel within Australia directly related to project activities
  • essential travel overseas on a case-by-case basis directly related to project activities

 
 

More Information

 

For further tips for lodging your Clinical Translation & Commercialisation claim,
Give us a call or schedule an assessment


 
 

Services
Ryan can assist with services such as:

  • Scope your potential to claim various grant programs
  • Assist with the preparation and lodgement of grant applications
  • Review or provide a health check on your internally prepared grant applications
  • Establish record-keeping practices as required under various grant programs
  • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
  • Keeping industry informed on all new Government policy and grant initiatives

Don’t hesitate to give us a call or schedule a free assessment.

VIC Waste to Energy Fund – Reminder

waste to energy

VIC Waste to Energy Fund

Newsletter | August 8, 2022


 

In February 2020, the Victorian Government announced a $10 million waste to energy support package as part of Recycling Victoria: a new economy. A key commitment of this action plan is to halve the volume of organic waste going to landfill by 2030. Anaerobic digestion is considered a priority for investment in supporting waste to energy infrastructure development.

The Waste to Energy Fund aims to support the development of innovative bioenergy projects and business models to enable the implementation of best-practice infrastructure that builds capability and capacity in Victoria’s bioenergy sector.

 
 

TIMELINE

  1. Applications open: Friday 1 July 2022
  2. Applications close: Friday 26 August 2022
  3. Notification of outcome: Expected January or February 2023.
  4. Funding agreements established: April 2023
  5. Projects commenced by: May 2023
  6. Project completed by: 31 March 2025

 
 

WHO CAN APPLY?

Funding is available to Applicants that propose to generate bioenergy using organic materials and can demonstrate that this solution is the best value option in the Waste Hierarchy.

Eligible organisations include:

  • businesses, industry groups or associations
  • local government
  • research institutes
  • Charities
  • Community Groups
  • Social Enterprises
  • other Not-For-Profit organisations.

 
 

WASTE TO ENERGY FUND OVERVIEW

The fund is aimed at a range of sectors, including but not limited to:

  • Agricultural and livestock
  • Forestry
  • Food production
  • Food retail including the hotel industry
  • Wastewater management

Projects must meet one or more of the following objectives:

  • increase the production of bioenergy in Victoria
  • increase the diversion of organic material from landfill
  • increase abatement of greenhouse gases
  • increase business opportunities, economic development, and beneficial use of pathways across the bioenergy supply chain.

The Fund aims to achieve the following outcomes:

  • increase the capacity of Victoria’s renewable energy generation
  • increase in the amount of organic material diverted from landfill
  • decrease greenhouse gas emissions
  • purchase, install, and commission bioenergy infrastructure
  • increase local employment
  • develop realistic feasibility studies and business cases
  • develop market pathways for bioenergy end products
  • develop and analyse the feedstock market network
  • develop clear regulatory and approval pathways.

 
 

STREAMS OF FUNDING

The funding is available through two streams:

  • Stream 1: Project development – supports Applicants to scope, test, and gain approvals to achieve pre-construction and pre-financial close phases of a bioenergy project.
  • Stream 2: Project infrastructure – supports Applicants with a proven business case in the purchase, construction, and commissioning of infrastructure to convert organic matter to bioenergy.

This grant program is funded through the government’s circular economy policy, Recycling Victoria: a new economy

 
 

FUNDING AVAILABLE

For Stream 1, each project can receive a grant of between $20,000 and $250,000 (ex. GST).

For Stream 2, each project can receive a grant of between $50,000 and $1 million (ex. GST).

Applicants must contribute at least $1 for every $1 requested.

 
 

WHAT WILL BE FUNDED?

Funding for Stream 1 will support projects that:

  • focus on feasibility studies, technical studies or the development of business cases relating to a proposed facility that will generate energy from organic waste
  • require support in pre-financial close stages
  • use agricultural cropping residues, such as cereal straw and chaff
  • use waste and manure from poultry, dairy, piggeries, and other animal operations
  • use general food waste from commercial and industrial hospitality and retail operations
  • use food manufacturing and processing wastes (including dairy, fruit, nuts, wine, and meat)
  • use forestry wood residues from forest harvesting and wood processing as a feedstock
  • are small scale bioenergy projects using fruit and vegetable waste from horticulture residues
  • generate energy from paper and pulp manufacturing and related processing waste (that can’t be recycled into paper products)
  • process biosolids, sewage and sludge waste.

Projects must:

  • align with the objectives of the Fund
  • be implemented in and service Victoria
  • meet regulatory or planning requirements
  • not have commenced or will not commence prior to entering into a funding agreement with SV
  • be completed by 31 March 2025.

Costs that will be funded include:

  • technology selection costs
  • feedstock identification and end market research and development
  • conducting laboratory testing of incoming feedstock
  • engineering, procurement, and construction tendering related costs
  • consultancy or contract work required for the project
  • conducting testing required for approvals
  • planning and regulatory approval costs.

You can submit multiple applications. Each application must be for a different project. An application must not be for multiple projects.

Funding for Stream 2 will support projects for a proposed facility that:

  • will process a minimum of 51% organic feedstock from Victoria
  • require capital to generate bioenergy from organic material in the form of heat, electricity, renewable gas, or liquid fuels
  • have a site selected in Victoria
  • have the potential to be replicated at other sites in Victoria (same or similar industry)
  • use agricultural cropping residues, such as cereal straw and chaff
  • use waste and manure from poultry, dairy, piggeries, and other animal operations
  • use general food waste from commercial and industrial hospitality and retail operations
  • use food manufacturing and processing wastes (including dairy, fruit, nuts, wine, and meat)
  • use forestry wood residues from forest harvesting and wood processing as a feedstock
  • are small scale bioenergy projects using fruit and vegetable waste from horticulture residues
  • generate energy from paper and pulp manufacturing and related processing waste (that can’t be recycled into paper products)
  • process biosolids, sewage and sludge waste.

Projects must:

  • have a proven business case and co-financing support to proceed with infrastructure purchase
  • have the chosen technology selected
  • align with the objectives of the Fund and Recycling Victoria: a new economy
  • be implemented in and service Victoria
  • meet regulatory or planning requirements and have these pathways established and secured
  • not have commenced or will not commence prior to entering into a funding agreement with SV
  • be completed by 31 March 2025.

Costs that will be funded include:

  • capital purchases
    • supporting machinery for new project development
    • upgrades or additions to existing bioenergy infrastructure or equipment
  • construction and commissioning costs

Costs must be related to the project in your application form.

You can submit multiple applications. Each application must be for a different project. An application must not be for multiple projects.

 
 

More Information

 

For further tips for lodging your Waste to Energy Fund claim,
Give us a call or schedule an assessment


 
 

Services
Ryan can assist with services such as:

  • Scope your potential to claim various grant programs
  • Assist with the preparation and lodgement of grant applications
  • Review or provide a health check on your internally prepared grant applications
  • Establish record-keeping practices as required under various grant programs
  • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
  • Keeping industry informed on all new Government policy and grant initiatives

Don’t hesitate to give us a call or schedule a free assessment.

Tips for Lodging an R&D Tax Incentive Claim

Tips for lodging R&D Claims - Calculator over paperwork

Tips for Lodging an R&D Tax Incentive Claim

Newsletter | July 20, 2022

Co-Authored by James Longworth


 

When deciding to claim the Research & Development Tax Incentive (RDTI), there are many things to consider to ensure you are lodging a defendable RDTI claim, these include:

 
 

Tip #1 – Engage a Reputable Agent

It is strongly recommended you engage a reputable R&D Tax agent who understands your technology. This will enable you to confirm eligibility through the identification of eligible Core and Supporting activities under which eligible expenses can be linked and claimed.

It is possible for claimants to prepare and lodge their own claims without the assistance of R&D tax agent, however, due to the complexities of the program there is an increased risk that your claim could be challenged as audits may occur up to 4-5 years after receiving the benefit whereby if rejected would require the repayment of the initial benefit plus penalties and interest

 
 

Tip #2 – Maintain Proper Records

As an RDTI registration application can only be lodged up to 10 months after the completion of each financial year, maintaining contemporaneous R&D records is important for the following reasons:

  • It is difficult to remember specific details of the R&D activities that was undertaken in a prior year
  • Having to go back through the files and collect all the relevant documents and costs that are associated with the R&D activities makes the RDTI process onerous
  • It could lead to a reduced claim as not all the R&D activities/expenditure can be backed up
  • To ensure compliance in case your claim is audited

If records are maintained (and date stamped) throughout the R&D activities and placed in an R&D file, it will make the process easier when it is time to submit the application. This will make them more accurate, strengthening the validity of the R&D claim.

 
 

Tip #3 – Doublecheck your associate payments

Ensure any R&D expenditure incurred to an associate (related entity) is paid before the end of the financial year so that you drawdown the R&D benefit related to the costs as opposed to having to carry it forward in your tax return until it’s paid.

Lodge the RDTI application early. The processing time for RDTI registration applications has increased due to the increasing number of applicants and the more in-depth review processes recently implemented by AusIndustry, the prior 10 day processing period has increased to:

  • 40 business days for first-time registrants
  • 20 business days for registrants that have applied within 6 months after the end of the income period
  • 80 business days for registrations submitted from 6 to 10 months after the end of the income period.

Remember you can’t claim your R&D Tax benefit in your tax return until AusIndustry has firstly processed and registered your project activities. Therefore, it’s important to maintain contemporaneous records, lodge the registration application as early as possible and ensure your external accountant is preparing your financial statements up to draft tax return stage whilst AusIndustry is processing the registration application. Having these measures in place will allow the tax return to be lodged on time, avoiding the need to lodge an amended tax return which will delay the receipt of the benefit

 
 

Which costs can be claimed under the RDTI?

When analysing the R&D entity’s financials, the R&D expenditure needs to be allocated into the following 9 categories in which eligible expenditure can be claimed. Please note there are many nuances to the RDTI and this is a general guide.

 

R&D expenditure – Research Service Provider

Registered Service Provider’s (RSP’s) are entities approved by Innovation Australia and are unrelated to the R&D entity. As RSP’s have appropriate scientific or technical expertise and resources, they can perform R&D on behalf of an R&D entity and are therefore the RSP expenses are eligible to be claimed under the RDTI.

 

R&D expenditure – Contract expenditure (not RSP)

Contractors (other than RSP’s) that undertake R&D activities are eligible to be claimed under the RDTI. It is important to consider the following when employing an R&D Contractor,

  • Make sure the specific R&D activities they will be working on are detailed when preparing their Contract / Scope of Activities statement.
  • Ask the Contractor to distinguish their time between the R&D activities and non-R&D activities on their invoices and Progress Reports.
  • Detail minutes of any meetings between yourself and the contractor (this will assist in keeping contemporaneous records)
  • It is also important to note that if Contractor payments are paid into a family trust, further investigation on RDTI eligibility is required.

 

R&D expenditure – Salary expenditure

Salaries and wages of employees engaged directly in conducting eligible R&D activities can be eligible under the RDTI to the extent of their R&D involvement. The relevant employees may include:

  • researchers undertaking the conception and/or creation of new knowledge and products
  • employees undertaking technical tasks in support of the R&D activities, such as persons keeping records, preparing charts and graphs, operating equipment, and writing computer programs
  • supervisors of researchers and technical staff.

It is important to note that superannuation can contribute to the Salary Expenditure and must be paid by the 28th of July each year.

If a salary is paid via a loan account, further investigation will be required.

 

R&D expenditure – Other

This general category can be split into two types of expenditure

  1. Direct; which is expenditure directly related to R&D activities such as R&D related travel, R&D materials (including overseas purchases), or hiring specific equipment that is used for R&D only etc.)
  2. Overhead; these expenses are apportionable (to the extent of R&D) such as rent, internet and electricity etc.

The rate of apportionment can be determined 3 ways and the most appropriate rate will be allocated to the R&D entity.

  • Cost Rate: the total R&D wages vs. total wages
  • Hourly Rate: the total R&D hours vs. the total hours worked
  • Floor Space: the floor area used for R&D activities vs. the total floor space

 

R&D expenditure – Feedstock input expenditure

Goods or materials that are transformed or processed during R&D activities along with the energy input directly into that transformation or processing are eligible under the RDTI,

However, if the feedstock used and transformed through R&D activities results in a tangible product that is then sold or used for internal purposes, a feedstock adjustment will be required.

 

R&D expenditure – Paid to associates in the current year

Generally, associates are entities that by reason of family, ownership or business connections, might appropriately be regarded as being associates to the claimant company. This includes wages and contracting payments to the directors or owners of the company as well as contracting fees to companies that have similar owners. Common non-arms-length transactions can include companies that may have a separate company for their intellectual property or staff that contract across R&D expenditure. Association also applies to companies that might be owned by a spouse or related family and other similar arrangements.

R&D associate expenditure must be identified and recorded in the financial year it was incurred and only claimed under the RDTI once it’s paid. This means that if the R&D associate expenditure incurred was not paid for within the financial year, it will be noted as unpaid and carried forward until payment is made, making it claimable in a future year.

 

R&D assets – Decline in value

  • The depreciation on registered assets used for R&D activities in the claim year are eligible under the RDTI.
  • R&D Prototypes need to be depreciated over their useful life.
  • Please note that Pooled assets aren’t eligible as the tax treatment is already favourable
  • It is also important to note that the assets that are treated under Simplified Depreciation rules (Instant asset write off) are not eligible under the RDTI with the exception of the Temporary Full Expensing treatment which allows assets to be fully expensed until the 30th of June 2022.
  •  

    R&D assets – Balancing adjustment losses

    The sale or disposal of a depreciable R&D asset that would normally give rise to a Section 40-285 balancing adjustment will be affected by the RDTI.

    If an asset was used to conduct R&D activities, it entitles the claimant to claim the balancing adjustment deduction as a notional deduction for R&D instead of a normal deduction. Conversely, if a claimant receives a sale price greater than the adjustable value (purchase price minus depreciation) this should be reflected as an increase in assessable income to reduce the R&D benefit previously received.

     

    Cooperative Research Centre contributions

    Similar to RSP’s mentioned above, Cooperative Research Centre’s (CRC’s) have appropriate scientific or technical expertise and resources, but they perform R&D on behalf of multiple participants who fund the research via contributions. These contributions are eligible under the RDTI.

     

    For further tips for lodging your claim,
    Give us a call or schedule an assessment


     
     

    Services
    Ryan can assist with services such as:

    • Scope your potential to claim various grant programs
    • Assist with the preparation and lodgement of grant applications
    • Review or provide a health check on your internally prepared grant applications
    • Establish record-keeping practices as required under various grant programs
    • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
    • Keeping industry informed on all new Government policy and grant initiatives

    Don’t hesitate to give us a call or schedule a free assessment.

    Key Dates & Reminders June 29th, 2022

    Hourglass full of sand

    Key Dates & Reminders – Don’t Miss Out!

    Newsletter | June 29, 2022

     
     

    CONTENTS

    1. R&D Tax Incentive
    2. Export Market Development Grants
    3. NSW Export Assistance Grant

     
     

    R&D Tax Incentive

    Applications to register 21/22 financial year R&D activities open on the 1st July

    The increased rates of return are:

    FY 2021-22

    • Annual revenue <$20m – Company Tax Rate: 25% – Refundable Tax Benefit: 43.5% (if matched by tax losses) or 18.5% (when trading in profit)
    • Annual revenue $20m-$50m – Company Tax Rate: 25% – Non-Refundable Tax Benefit/2 tier benefit: 8.5% on eligible R&D expenditure which accounts for up to 2% of total company expenses and an additional 16.5% on eligible R&D expenditure exceeding the 2% baseline.
    • Annual revenue >$50m – Company Tax Rate: 30% – Non-Refundable Tax Benefit/2 tier benefit: 8.5% on eligible R&D expenditure up to 2% of total company expenses and an additional 16.5% on eligible R&D expenditure exceeding the 2% baseline.

    End of Financial year R&D Tax Housekeeping tips:

    • Pay your associated party R&D fees by 30th June each year – if an entity or contractor is associated in any way with the R&D entity ( i.e. shareholder, director, staff, or associated entity) their fees for R&D services must be paid for by the 30th June in the year of the R&D activity otherwise the ATO will not allow the claimant to drawdown the tax benefit when the tax return is lodged, instead, the unpaid associated party expense must be carried forward in the tax return and only realised when the expense is paid.
    • Pay your R&D staff superannuation payments by the 30th June each year – to be eligible to claim the superannuation costs relating to R&D staff requires the superannuation to be paid on or before the end of the financial year. Similarly, late compulsory superannuation payments cannot be claimed in the financial year they apply but can be claimed in the following year when paid.

     
     

    Export businesses note the following deadlines:

     
     

    Export Market Development Grant

    Round 2 Applications open 6th July,2022

    Austrade have announced the opening of applications under Round 2 for a limited 6 week window ending the 17th of August, 2022.

    Under the new EMDG program, eligible SMEs under $20m in annual revenue are eligible to apply and receive forward grant agreements commencing 1/7/22. The grant amounts provided in the 1st Round provide an indication of what may be offered to Round 2 applicants assuming the demand and funding remains stable:

    Tier 1

    First Time Exporter
    Tier 1 – up to $15,000 per financial year – 2 year grant agreements


    Tier 2

    Existing Exporter / Existing Product(s)
    Tier 2 – up to $24,600 per financial year – 3 year grant agreements


    Tier 3

    Existing export businesses undertaking a major strategic shift – new products/ new markets
    Tier 3 – up to $36,600 per financial year – 3 year grant agreements


    Eligible marketing categories are:

    • Overseas Representatives
      Costs associated with engaging an overseas representative to conduct market research and promotional activities
    • Marketing Consultant/Agent
      Costs associated with engaging a consultant to undertake market research or marketing on a fee basis
    • Short trips to a foreign country
      Expenses of up to 21 days’ continuous travel between Australia and a foreign country are eligible. Airfares, accommodation and meals
    • Short trips within Australia
      Expenses of up to 21 days’ continuous travel within Australia are eligible if they relate to promoting to potential foreign buyers. Airfares, accommodation and meals
    • Soliciting for business in a foreign country
      Costs related to soliciting for business in a foreign country for the eligible product e.g tradeshows, demo’s. in store promotions
    • Free Samples
      Sample(s) production and freight costs
    • Promotional literature and Advertising
      Costs of producing marketing material such as flyers and brochures, online and print advertising, photography, digital artwork, virtual events, social media marketing
    • Overseas Buyers
      Costs of bringing an overseas buyer into Australia for marketing purposes. Airfares, accommodation and meals
    • Overseas Patents and Trademarks
      The cost of international patent and trademark applications/registration/renewals

    If you are promoting your products in foreign markets, give us a call.


    *special note, Russia is now excluded from eligible countries.

    Applications close 4:00 p.m. on the 17th August, 2022


    NSW Export Assistance Grant

    If you are an exporting business, or if you were exporting goods or services before the impacts of COVID-19, bushfires or drought, consider applying. Export businesses may be eligible for an export assistance grant of up to $10,000.

    Eligible Activities

    This grant helps eligible export businesses in NSW access global markets. Funds can be used for:

    • marketing materials
    • website internationalisation
    • pivoting to online delivery (for example, converting face-to-face training content to online content for international audiences)
    • e-commerce development
    • market research
    • international tradeshow and trade missions
    • inbound business support
    • costs to support compliance/localisation of products for export
    • costs to protect business in international markets.

    Available Funding

    This grant will be provided as reimbursement of 50% of eligible expenses, up to a maximum of $10,000 per eligible business, for expenses already paid since 1 January 2020.

    How to Apply

    You can submit either one application up to the maximum of $10,000 or multiple applications of a minimum of $2,000 per each application, totaling a maximum of $10,000.

    Applications close at 11:59pm on 30 June 2022 or when the allocated funding is exhausted.

    Eligibility

    To be eligible for this grant, you must:

    • be based in NSW
    • be currently exporting, or were exporting prior to the impacts of COVID-19, bushfires or drought
    • employ a minimum of 3 full-time equivalent workers at the time of application
    • own the goods/services to be exported, or be able to provide documented evidence that you are the agreed export supplier
    • produce the goods/services to be exported in Australia, or be able to provide documented evidence that the business provides substantial value to NSW
    • be an exporting business with an annual turnover of:
      • up to $100 million, or
      • greater than $100 million that can demonstrate export turnover has declined by more than 30% in the 2019–20 financial year and have an intention to re-establish your export business in your established markets and/or diversify into new markets.

    Click here to find out more

     
     

    TCF Services & Ryan have a strong history of assisting export businesses & delivering the R&D Tax Incentive

    Give us a call to get started


     
     

    Services
    Ryan can assist with services such as:

    • Scope your potential to claim various grant programs
    • Assist with the preparation and lodgement of grant applications
    • Review or provide a health check on your internally prepared grant applications
    • Establish record-keeping practices as required under various grant programs
    • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
    • Keeping industry informed on all new Government policy and grant initiatives

    Don’t hesitate to give us a call.

    Ignite Ideas Round 9

    Design process dial showing stages of innovation

    Ignite Ideas Round 9 Now Open

    Newsletter | June 22, 2022

     
     

    Ignite Ideas funding is available to commercialise highly innovative and new products or services that are at minimum viable product stage or beyond.

    The Ignite Ideas fund is Queensland based industry support for SME businesses with high growth potential to undertake commercialisation projects that will:

    • strengthen key industries in Queensland
    • diversify the Queensland economy
    • compete in domestic and global markets
    • engage and/or benefit regional Queensland
    • create new jobs, now and into the future.

    For Round 9, successful recipients will be eligible for additional business development support through Advance Queensland’s new Ignite+ program.

    This pilot program will provide support across sales and marketing, customer acquisition, competitor analysis, intellectual property (IP)/legal support, financial structure, connections to mentors and sponsors, and access and introductions to business and investment networks.


    Funding is available in two tiers:

    Tier 1

    Up to $100,000 (excluding GST) for projects of up to 12 months duration.


    Tier 2

    Greater than $100,000 and up to $200,000 (excluding GST) for projects of up to 24 months duration.




    Are you Eligible?


    In order to be eligible for funding, your business must:

    • be headquartered in QLD
    • have less than 50 full-time employees
    • not be a subsidiary for a larger company
    • not have already receive funding for the proposed project
    • be GST registered.

    Tier 1 Eligibility

    • Not have received an Ignite ideas Fund previously.
    • Make a cash contribution to the project equal to 20% of project cost

    Tier 2 Eligibility

    • not previously received a tier 2 grant
    • not be applying for a product or service that has previously received Ignite Ideas funding
    • your business must have successfully completed a Tier 1 funded project if a tier 1 grant was applied for.
    • make a cash contribution equal to the sought funding





    Expression of Interest applications will close Thursday, 7 July, 2022 at 10:00 a.m.

    Ignite Ideas advise late applications will not be accepted.

     
     

    TCF Services & Ryan have a history of delivering successful Ignite Ideas claims.

    Give us a call to get started


     
     

    Services
    Ryan can assist with services such as:

    • Scope your potential to claim various grant programs
    • Assist with the preparation and lodgement of grant applications
    • Review or provide a health check on your internally prepared grant applications
    • Establish record-keeping practices as required under various grant programs
    • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
    • Keeping industry informed on all new Government policy and grant initiatives

    Don’t hesitate to give us a call.

    Labor Government Promises New Industry Initiatives

    Australian Senate room empty

    Labor Government Promises New Industry Initiatives

    Newsletter |June 8, 2022

     
     

    CONTENTS

    1. Labour Announcements
    2. Currently Open Grants
      1. Sovereign Industrial Capability Priority Grant
      2. Advanced Manufacturing Commercialisation Fund
      3. Export Market Development Grant
      4. Research & Development Tax Incentive


    With every change in Government brings a new horizon whereby positive announcements are pushed out with headline promises of additional funding to drive economic change. 

    The challenges we face today and the pace in which generational change is impacting our future at both a global and local level have been further impacted by multiple externalities like:

    • COVID effects on supply chain/sovereign capability giving rise to an increased rate of technology adoption
    • the Russia/ Ukraine conflict effects on energy supply resulting in rising costs of living 
    • sovereign risks as an outcome of China’s emergence dividing the West/ East 
    • as well as ongoing debate concerning collective actions required to deal with climate change in our goal to reach zero emissions. 

    It’s fair to say that we will not have seen the need for such quantum change requiring major structural adjustment since the last meaningful Labor Government under Hawke/ Keating in the 1980/90’s which floated the Aussie dollar, opened the Australian economy to global competition, launched Medicare and the National Superannuation scheme in addition to  rolling out many of the industrial, environmental and social reforms which are commonly  accepted as normal practice today.  

    At this stage we have seen only 2 major announcements from Labor:

     
     

    1. Ed Husic appointed Minister for Industry and Science

    2. Long-time tech and innovation advocate Ed Husic will be Australia’s new Industry Minister after he retained his portfolio in the new Labor government’s Cabinet. Mr Husic has served as Shadow Industry Minister since the start of 2021 and has advocated for the local tech and manufacturing sectors since he first entered Parliament.

      Husic has already promised to review the broader innovation policy including the R&D Tax Incentives where software eligibility has been a point of conjecture for several years.  

    3. $15 billion National Reconstruction Fund (NRF)

    4. The Labor Party’s key commitment to advanced manufacturing is a $1 billion Advanced Manufacturing Fund funded under the new Government’s greater $15 billion National Reconstruction Fund. Also included is $1 billion for a Critical Technologies Fund and $1.5 billion for a Medical Manufacturing Fund.

      The operating model for the NRF is the Clean Energy Finance Corporation set up under the previous Rudd/Gillard government. “It’s got an independent board, made up of smart people who will make the calls on investments,” Mr Husic said.

      As we all know the devil will be in the detail so watch this space as we attempt to report on the details as and when they are released. Suffice to say that most existing Liberal funding programs will be reviewed, altered or replaced. 

     
     

    The following grants are still open:

     

    Sovereign Industrial Capability Priority Grant  (Defence)

    A grant of $50,000 to $1 million for up to 50% of the cost of a project that builds capabilities aligned with Defence’s Sovereign Industrial Capability Priorities. The maximum grant period is 30 months.

    A grant of $50,000 to $1 million for up to 50% of the cost of a project.

    Grant funding is capped at $3 million in a 3-year period per recipient.

    This program opened in late April and will remain open until funds are exhausted.  

     
     

    Advanced Manufacturing Commercialisation Fund

    The Advanced Manufacturing Commercialisation Fund provides small to medium manufacturing enterprises with matched funding to commercialise new products and processes.

    Funding is available for small to medium manufacturing enterprises undertaking projects that align with one or more of the 6 National Manufacturing Priorities:

    • food and beverage
    • medical products
    • resources technology and critical minerals processing
    • recycling and clean energy
    • defence
    • space

    Closing Date: 30 Jun 2022
    Matched funding of between $100,000 and $1 million.

     
     

    Export Market Development Grants

    Austrade’s Export Market Development Grants (EMDG) program helps Australian businesses grow their exports in international markets. These grants encourage small to medium enterprises to market and promote their goods and services globally.
    Grants of up to 50% of eligible marketing expenses are claimable up to the level of the funding cap of $157m per annum.

    Round 2 applications will open soon after the Labor Government considers additional funding for the program due to the higher than expected Round 1 participation reducing  the benefit by up to 80%.  

     
     

    R&D Tax Incentive

    The Research and Development Tax Incentive (R&D Tax Incentive or R&DTI) provides tax offsets to incentivize local companies to undertake R&D. The financial risk associated with the technical or scientific risk required to develop new products, processes and services is claimable and the benefit is delivered in cash at a rate of 43.5% for start-up companies under $20m in annual revenue. 

    Applications open on the 1st July for companies with a standard financial year wishing to claim their FY 2021-22 activities as per the following rates of return: 

    • Annual revenue <$20m – Company Tax Rate: 25% – Refundable Tax Benefit: 43.5% (if matched by tax losses) or 18.5% (when trading in profit)
    • Annual revenue $20m-$50m – Company Tax Rate: 25% – Non-Refundable Tax Benefit/2 tier benefit: 8.5% on eligible R&D expenditure which accounts for up to 2% of total company expenses and an additional 16.5% on eligible R&D expenditure exceeding the 2% baseline.
    • Annual revenue >$50m – Company Tax Rate: 30% – Non-Refundable Tax Benefit/2 tier benefit: 8.5% on eligible R&D expenditure up to 2% of total company expenses and an additional 16.5% on eligible R&D expenditure exceeding the 2% baseline.

     
     

    – Labor Government Promises New Industry Initiatives –

     
     

    Services
    Ryan can assist with services such as:

    • Scope your potential to claim various grant programs
    • Assist with the preparation and lodgement of grant applications
    • Review or provide a health check on your internally prepared grant applications
    • Establish record-keeping practices as required under various grant programs
    • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
    • Keeping industry informed on all new Government policy and grant initiatives

    Don’t hesitate to give us a call.

    Changes to the 2022 Research & Development Tax Incentive Schedule

    Two hands together making a window, Research & Development tax incentive in the center

    Changes to the 2022 Research & Development Tax Incentive Schedule

    Newsletter | June 8, 2022

    By Shak Akhter – Senior Business Manager, Ryan Tax Services

     

    Here’s what you need to know:

    The ATO has recently released its Research and Development Tax Incentive Schedule (NAT 73794) for the 2022 financial year. Legislative changes introduced in the October 2020 budget have seen the introduction of changes in the way R&D entities calculate and report their R&D tax offset expenses to the ATO for the YE 30 June 2022 compared to prior years.

    Consequently, this has also resulted in some changes in R&D entity’s tax return. Changes to the R&D tax schedule apply for income years commencing on or after 1 July 2021; therefore for early balancing entities with an early balancing substituted accounting period, the new R&D tax schedule applies from 1 January 2022.

    Specific label changes in the new ATO’s Research and Development Tax Incentive Schedule 2022 include additional reporting for:

     

    Part B – Clawback Amounts

     

    Part E – R&D Tax Offset Calculation

     

    Instructions on how to complete the 2022 R&D Tax schedule are available online. We hope that the ATO releases numerical examples and additional guidance pertaining to the calculation of R&D recoupment amount, assessable and deductable balancing adjustments, and clawbacks under these amendments. Communication and guidance from the ATO will enable R&D entities to appropriately categorize and calculate eligible R&D expenditure and reduce any potential for compliance audits.

    If you would like to discuss how Ryan can help you with the R&D Tax Incentive and minimize your tax compliance burden, then get in touch with us today.

     
     

    – 2022 R&D Tax Incentive Schedule Changes –

     
     

    Services
    Ryan can assist with services such as:

    • Scope your potential to claim various grant programs
    • Assist with the preparation and lodgement of grant applications
    • Review or provide a health check on your internally prepared grant applications
    • Establish record-keeping practices as required under various grant programs
    • Provide prepayment loans against future cash refunds under the R&D Tax Incentive
    • Keeping industry informed on all new Government policy and grant initiatives

    Don’t hesitate to give us a call.