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

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.  

2. $15 billion National Reconstruction Fund (NRF)

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

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

• R&D recoupment (item 7) – total amount of all R&D recoupment amounts that relate to expenditure for which the R&D entity has claimed notional deductions under the R&D Tax Incentive,
• Assessable balancing adjustment (Item 8) – Balancing adjustment events occur when the R&D entity stops holding a depreciating asset used in R&D activities, for example, when the entity sells the asset for which the termination value may be the sales proceeds of the R&D asset,
• Total clawback (Item 9) – Additional assessable income resulting from all clawback adjustments, including Feedstock adjustment amount, R&D recoupment amount, and Assessable balancing adjustment amount,
• Deductible balancing adjustments (Item 10) – when the termination value of the R&D asset at that time was less than the asset’s adjustable value,

 

Part E – R&D Tax Offset Calculation

• Disclosure of the company tax rate (R) and
• R&D intensity calculations (A) that take into account the total R&D expenses for the entity.

 

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.

Export Market Development Grants 2022

Newsletter | May 25, 2022

 
 

Austrade have just announced that the 2nd Round for making applications under the new the Export Market Development Grants (EMDG) program will soon open for a limited time.

• Opening Soon: Announcement from Austrade Imminent, watch this space

 

Under the new EMDG program, eligible SMEs are able to apply for forward grant funding over multiple years to cover eligible marketing and promotional activities.
The eligible marketing categories are:

1. Overseas Representatives
2. Marketing Consultant/Agent
3. Short trips to a foreign country
4. Short trips within Australia
5. Soliciting for business in a foreign country
6. Free Samples
7. Promotional literature and Advertising
8. Overseas Buyers
9. Overseas Patents and Trademarks

 

The new EMDG program provides 3 Tiers of grants:

• Tier 1 – first time exporter
• Tier 2 – existing exporter / existing product(s)
• Tier 3 – existing exporter undertaking a major strategic shift  – new products/ new markets 

 
 

How much can you receive?

The likely grant amounts for Round 2 will be determined once applications are closed and assessed. As the annual program funding is capped at approximately $150m the grant amount will be divided equally by the number of eligible applicants within each tier.

The grant amounts in the first round FY 2021-22 may give some guidance, assuming the application demand and funding remains stable:

• Tier 1 – up to $15,000 per financial year
• Tier 2 – up to $24,600 per financial year
• Tier 3 – up to $36,600 per financial year
• Representative bodies – up to $90,000 per financial year

 
 

Once applications are assessed eligible exporters will be offered a forward grant agreement – Tier 1 applicants will receive a 2 year agreement and Tier 2 and 3 applicants a 3 year agreement. The grant is designed to cover 50% of eligible export marketing expenses paid for from the 1st July 2022 to either the 30/6/24 for Tier 1 applicants OR up to 30/6/25 for Tier 2 and 3 applicants.

 
 

Please note: Eligible exporters are only eligible to claim EMDG grants for a maximum of 8 years so any claim history under the prior program from 1992 will be included in assessing eligibility – this includes picking up any claim history from a prior entity operated by the same owners undertaking the same type of business activities. 

 
 

Further information can be found on the Frequently Asked Questions and you can download the Guidelines at EMDG Grants Guidelines and legislation.

 
 

– Export Market Development Grants Second Round 2022 –

 
 

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.

Australian Defence Industry Grants

Newsletter | May 10, 2022

 
 

With consideration to rising tensions both globally and in the Pacific, this week we provide the latest update on the new and returning Australian Defence Industry Grants.

Given this sector is highly specialised we suggest that interested parties firstly contact the Office of Defence Industry Support (ODIS) to receive free services and advice from a ODIS Case Manager regarding your potential entry strategy into this sector. 

https://business.gov.au/odis/build-your-business-in-defence

https://www.defence.gov.au/business-industry/finding-opportunities/office-defence-industry-support

 

CONTENTS

1. Sovereign Industrial Capability Priority Grants
2. Defence Global Competitiveness Grants
3. Skilling Australia’s Defence Industry Grants

 

Sovereign Industrial Capability Priority Grants

Funding for Australian businesses to build industrial capabilities that fit with Defence’s Sovereign Industrial Capability Priorities.

Project activities can include:

• buying, leasing, constructing, installing or commissioning of capital equipment including specialist software to enhance cyber security

As they relate to the above activities, this can also include:

• design, engineering and commissioning activities
• workforce training and accreditations.

 

What do you get?

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.

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

 

Who is it for?

Small to medium sized businesses with an Australian business number (ABN). The business must be a company incorporated in Australia or and incorporated trustee on behalf of a trust.

Minimum Required Contribution: 50%

For more information, click here

 
 

Defence Global Competitiveness Grants

–This grant is currently in caretaker mode, applications can still be submitted, but decisions will not be made until after the 2022 election outcome is announced. —

 
Grants to help Australian businesses invest in projects that build their defence export capability.

Project activities can include:

• buying, leasing, constructing, installing or commissioning of capital equipment including specialist software to enhance cyber security
• design, engineering and commissioning activities
• workforce training and accreditations

 

What do you get?

A grant of $24,000 to $240,000 for up to 80% of the cost of investing in projects that build export capability to build a stronger, more sustainable and globally competitive Australian defence industry. The maximum grant period is 18 months.

 

Who is it for?

Small to medium sized businesses (Less than 200 employees) with an Australian business number (ABN). The business must be a company incorporated in Australia or and incorporated trustee on behalf of a trust.

Minimum required contribution: 20%

For more information, click here

 
 

Skilling Australia’s Defence Industry Grants

–This grant is currently in caretaker mode, applications can still be submitted, but decisions will not be made until after the 2022 election outcome is announced. —

 
Skilling Australia’s Defence Industry Grants provide businesses servicing the defence sector with upskilling and training opportunities to build skills capacity and capability to meet current or future Defence needs. The grant was updated on the 4th of April, 2022 to include an additional $20.3m in funding until March 2026. 

The Skilling Australia’s Defence Industry Grants Program will provide grants to businesses over three years to help develop defence sector skills and human resources practices and training plans.

The program aims to:

• reduce barriers faced by Small and Medium Enterprises (SMEs) in the defence sector when upskilling or retraining staff
• develop skills within SMEs in the defence sector
• support SMEs in the defence sector to establish human resources practices and training plans that will build lifelong learning activities into their business

 

What do you get?

A grant between $5,000 and $500,000 to undertake various defence skills training activities.

You may apply for multiple grants or group multiple eligible activities into one application.

The funding is capped at $500,000 in a six-year period from 2020–21 to 2025–26 for:

• each eligible business; and
• each industry association which is applying for funding to train their own staff.

 

Who is it for? 

• Small and Medium Enterprises (SMEs) that currently have a Defence contract, are tendering for one, are a subcontractor to a defence prime or contracted through the Prime’s supply chain to deliver on defence projects.
• Defence Industry Associations training their own staff or facilitating training to businesses they are representing.
• Defence Industry Associations applying for funding for eligible activities for the eligible businesses they are representing.

Minimum required contribution: 20%

For more information, click here

 
 

– Ryan can assist with Australian Defence Industry Grants –

 
 

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.

Four new Federal & NSW based grants now available

Advanced Manufacturing Commercialisation Fund | Advancing Renewables Program
Going Global Export Program | Jobs Plus Program

 

Listed below are four grants currently available for Federal and NSW based businesses. These grants are in line with the 6 national priority sectors previously announced by Government, including commercialising manufacturing, advanced renewable technology, going global export, and job creation.

Index

1. Advanced Manufacturing Commercialisation Fund
2. Advancing Renewables Program
3. Going Global Export Program
4. Jobs Plus Program

 

Advanced Manufacturing Commercialisation Fund – AMGC – National

The Advanced Manufacturing Commercialisation Fund provides small to medium manufacturing enterprises with matched funding to commercialise new products and processes. Matched funding of between $100,000 and $1 million.

Applications close on 30 June 2022 or when funds are fully allocated.

The funding will soon be fully allocated, so you are encouraged to complete your application and submit it as soon as possible. This means funding will be allocated to where applications show:

• Significant job creation
• Manufacturing of innovative products in Australia
• Globally competitive products with export potential
• Sound business models with good value propositions
• Suitable finance arrangement to fund your portion of the project costs.

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

• Food and Beverage
• Medical Products
• Resources Technology and Critical Minerals Processing
• Recycling and Clean Energy
• Defence
• Space

The grant will cover up to 50% of eligible project costs.

 

Advancing Renewables Program – ARENA – National

Expressions of Interest are continually open for the Advancing Renewables Program. Matched funding of between $100,000 and $50 million is available.

The program provides businesses with funding or finance to develop renewable energy technologies.

It aims to fund projects that contribute to one or more of the following outcomes:

• Reduction in the cost of renewable energy
• Increase in the value delivered by renewable energy
• Improvement in technology readiness and commercial readiness of renewable energy
• Reduction in or removal of barriers to renewable energy uptake
• Increase in skills, capacity, and knowledge relevant to renewable energy.

 

Going Global Export Program – NSW only

The 2021-22 NSW Going Global Export Program supports eligible NSW businesses to reach new customers in new international markets. It supports businesses in the following sectors:

• Food and Beverage, Agri-Food, Processed Food
• Health and Medtech
• Technology

The program provides export coaching, tailored workshops and business matching with international customers. It is suitable for those that are seeking global sales for the first time, as well as those currently exporting and looking to diversify into new markets. It offers participants:

• an understanding of market dynamics
• practical approaches for doing business in the target market
• opportunities to identify and engage with new customers in the target market
• opportunities for networking with global businesses and entrepreneurs
• opportunities for global promotion
• opportunities for peer interaction with the businesses in your cohort

The 2–6 month intensive engagement program has been developed to give businesses a richer understanding of preferred high growth export markets, tailored for specific industry-sectors

 

Jobs Plus Program – NSW only

The Jobs Plus Program is open until 30 June 2022 and new staff hires must start before 31 December 2022.

The program supports Australian and international businesses to start or expand their operations in NSW. Support is available to help reduce the costs and financial risks of growing a business or moving its operations to NSW.

To be eligible for the program, Australian businesses must currently employ at least 20 workers and overseas businesses must employ at least 80 workers.

Proponents seeking assistance through the program will be eligible for a variety of support levers based on the number of jobs created, including:

• Jobs Plus Concierge Service
• Payroll tax relief for up to 4 years for every new job created where a business has created at least 30 net new jobs
• Subsidised training package rebates
• Enabling infrastructure rebates
• Access to subsidised, short-term government accommodation and spaces
• Assistance with the NSW planning approvals.

All businesses must be able to create at least 30 net new full-time equivalent (FTE) jobs in NSW before 30 June 2024. Further conditions apply.

 
 

– Are these four new federal and NSW based grants relevant for your business? –

Contact TCF today for a consultation

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.

Final Reminder for Application Deadline
May 3rd 2022

R&D Tax Incentive – applications to register R&D activities must be lodged by Tuesday 3rd May

It is important to note that the 3rd May lodgement deadline to register your 20/21 financial year R&D activities is looming fast for companies with a standard 30th June reporting year-end. This newsletter serves as your May 2022 R&D lodgement final reminder of application deadline. Other entities with a substituted accounting period have 10 months from the completion of their financial year to register.

Index

1. Rates | Record Keeping Tips | Deadline Information
2. Export Market Development Grant Receives Regional-Only Funding
3. NSW Export Assistance Grant

 

The new R&D Tax Incentive rates of return are:

FY 2020-21

• Annual revenue <$20m – Company Tax Rate: 26% – Refundable Tax Benefit: 43.5% (if matched by tax losses) or 17.5% (when trading in profit)
• Annual revenue $20m-$50m – Company Tax Rate: 26% – Non-Refundable Tax Offset: 12.5%
• Annual revenue >$50m – Company Tax Rate: 30% – Non-Refundable Tax Offset: 8.5%

 

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% – 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% – 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.

 

R&D Tax record-keeping tips:

It is also important to note that the R&D Tax Incentive is a self-assessment program requiring claimants to maintain contemporaneous records that track the progress of their R&D activities and quantify the costs associated with the activities being claimed. If suitable records are not maintained claimants run the risk of having their prior year/s claims rejected if audited and forced to pay back the benefits received plus interest and penalties. Listed below are the types of records that would be appropriate to meet compliance requirements:

• populating an annual R&D project plan which identifies your eligible core and supporting activities
• writing monthly technical reports which report on the conduct of your R&D activities
• completing weekly time-sheets for your R&D staff against eligible activities to calculate the claimable apportionment of time
• taking photos evidencing stages of prototype work and;
• recording technical meetings
• tracking the material costs associated with each trial

 

Export Market Development Grant (EMDG)

Receives additional funding in May budget but only for regional companies

Under the new EMDG program, eligible SMEs are able to apply for forward grant funding over multiple years to cover eligible marketing and promotional activities.

The oversubscribed and underfunded Export Market Development Grants scheme has been given a $100 million funding boost over the next two years, but this extra cash will only be accessible for regional companies.

The Federal budget, unveiled by Treasurer Josh Frydenberg on Tuesday night, included $100 million over two years for the Export Market Development Grants (EMDG) through the Regional Accelerator Program.

This funding will only be for regional-based companies looking to access the scheme, which provides reimbursements of up to 50 per cent for eligible export promotion expenses.

The funding will come from the Department of Regional Development rather than the Department of Foreign Affairs and Trade (DFAT), which administers the scheme.

DFAT’s funding for the EMDGs will remain steady at $157 million per year over the forward estimates, but the regional boost effectively ups this to $207 million in 2022-23 and 2023-24, before it drops back down to the ongoing amount.

Round 2 applications are expected to open soon which will cover eligible export marketing activities from the 1st July 2022.

Grant agreements for Tier 2 and 3 applicants who applied for the first Round (commencing 1st July 2021) will be issued shortly.

 

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, you 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

– Final Reminder – application deadline looming fast –

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.

Screen Australia drops a $150k Games Expansion Pack Grant for small and medium game developers

 

A Screen Australia initiative to help Australian game studios increase the ambition and quality of their digital games, and to transition into businesses of scale that can better compete in the global market. Screen Australia will provide production funding to successful applicants in the form of a grant towards the financing of their game. This games expansion pack grant is aimed at games with development budgets below $500,000.

The initiative will run for the 2021-22 and 2022-23 financial years.

Higher budget games are likely to be able to receive Australian Government support through the announced Digital Games Tax Offset, intended to be operational from 1 July 2022.

CONTENTS

1. What?
2. Who?
3. How?
4. Assessment Criteria
5. Terms of Funding

 

What?

Applicants can apply for funding for a digital game with a budget below $500,000. Applicants can also apply for funding for a slate of two or more games at that budget level provided all proposed games are at a stage where they can meet the proof-of-concept requirements set out below.

Screen Australia’s total support will not exceed $150,000 per application in respect of a game or games. Applications are limited to one per company for this current round.

Games can be for any video game platform including PC, mobile and console. The primary intention of the Games Expansion Pack Grant is to fund the creation of new titles. However, applications for live ops development of existing games are eligible. Games with co-financing from commercial partners or state agencies (including state based rebates) are eligible to apply.

The following games are ineligible for support through the initiative:

• games not intended for supply to the general public (eg. a game to be used by a company for training purposes or by an institution, or a game limited to one or a small number of locations);
• games which are substantially advertising or promotions;
• gambling or gambling simulations; and
• games that in the reasonable opinion of Screen Australia may have difficulties receiving an Australian classification.

The initiative will preference original game ideas, rather than licensed intellectual property.
Applications for XR projects which are not a ‘game’ should not apply to Games: Expansion Pack. Such projects may be eligible for funding under Screen Australia’s Online Production fund.

 

Who?

The Games: Expansion Pack funding for 2021-22 is targeted at emerging or small to medium independent game developers.

Companies should fit within the following criteria:

• private company (not listed on the ASX) and it is not majority owned or controlled by an overseas company
• Student teams are not eligible to apply and should seek funding and other support offered by their educational providers.
• Applicants need to be a company
• the game must predominantly be developed in Australia, under the key creative control of Australians or Australian residents, to be considered sufficiently Australian to be eligible for funding

 

How?

Applications for the 2021-22 round close 5pm Thursday 28th April 2022 and can be made through the Screen Australia application portal. Applications consist of the materials requested in the application form and a proof-of-concept in the form of:

• ideally, a playable prototype of the game(s); or
• an animated gameplay trailer for the game(s).
• a video pitch of no more than 3 minutes outlining the vision for the game(s) and the impact of a successful release on the applicant’s business;
• a development plan, including schedule and milestones;
• a financing plan and budget to completion and release (in the prescribed format);
• details of existing financing deals (such as grant agreements or deal memos); and
• a marketing and release plan no fewer than 3 pages long.

Applicants can also provide examples of past games or credits that they consider will help the assessment of the application. If an applicant and/or team has access requirements that make it difficult to submit their application, please email Games and we will make arrangements to assist.

 

Assessment Criteria

Each application will be assessed on the below criteria:

• the level of creativity and entertainment value of the game(s);
• the viability of the budget and development and financing plans to enable the game(s) to be developed to release;
• the viability of the marketing and release plan(s); and
• the potential for the game(s) to contribute to the scale and sustainability of the applicant.

Applications will be assessed by Screen Australia’s Online Department. Screen Australia may engage external assessors to assist it with some applications. If external assessors are used, Screen Australia will provide an opportunity to advise of any conflicts of interest.
Applicants will be notified of the outcome of their submission by mid-June 2022.

 

Terms of Funding

Screen Australia’s funding will be provided as a grant. It is not repayable to Screen Australia from the receipts of the game(s). The funding agreement will set out milestones appropriate to the game’s development plan. Payments will be made on satisfactory achievement of each milestone.

At least 90% of the grant must be spent on development expenditure of the game(s) in Australia. Successful applicants can elect to allocate up to 10% of the grant amount to marketing activities for the game, including attending conferences and festivals to promote the game. Applicants will need to provide a satisfactory acquittal of the grant against the development expenditure.

Screen Australia acknowledges and appreciates the efforts that go into applications, but given the anticipated volume of applications, it will not be able to provide detailed individual feedback on each application.
For any enquiries, please contact the Screen Australia Program Operations team on 1800 507 901 or email Games.

 
 

Get your applications to the Games Expansion Pack Grant in now, time is limited.

 
 

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.

The 2022 NSW Physical Sciences Fund is now open for applications

 

The NSW Physical Sciences Fund (PSF) is a competitive development and commercialisation program for technological innovations in NSW.

NSW has great strengths in research across a wide range of scientific fields. The PSF aims to build on these strengths by supporting the translation of research into devices and systems ready for commercialisation.

The PSF is a $5 million fund that aims to deliver significant social, economic and environmental benefits to NSW by providing financial support for the development of new and innovative devices and systems within NSW, across the branches of the physical sciences and engineering, including physics, chemistry, astronomy and the earth sciences.

 

CONTENTS

1. Purpose
2. Timeline
3. Funding
4. Principles
5. Eligibility

 

PURPOSE

The purpose is to obtain significant economic, environmental and social benefits to NSW by providing financial support to develop new and innovative devices and systems within NSW across the branches of physical science and engineering, including physics, chemistry, astronomy and the earth sciences

Click here for more details

 

TIMELINE

Date	Description
March 4 2022	Preliminary Applications Open
May 2 2022	Preliminary Applications Closed
July 2022	Shortlisted applicants present to the Expert Panel
August / September 2022	Full Applications Requested
October 2022	Shortlisted applicants present to the Expert Panel
December 2022	Successful applicants announced.

 
Please note that the dates are subject to change.
 

FUNDING

The funding awarded to each successful applicant will be merit-based and will depend on the overall quality and quantity of applications received.

• Funding will be in the range of $200,000 to $5 million over a period of one to three years. The funding will be distributed in a single payment to each successful applicant.
• Funding from the RAAP will take the form of a cash contribution following the execution of a funding deed between the applicant and Investment NSW (the Agency).

 

PRINCIPLES

• Project must demonstrate:
  • how the device/system will solve a problem,
  • it’s impact/benefits to NSW,
  • an existing proof of concept,
  • a clear path to commercialisation
• Funding can be used for commercialisation, manufacturing and protection of IP
• Funding will be tailored towards a companies current needs
• Not suitable for very early stage ventures

 

ELIGIBILITY

The NSW Physical Sciences fund is open to the companies meeting the following criteria:

• a financially viable company or commercial enterprise based in NSW (e.g. location of manufacturing jobs, headquarters based in NSW, NSW investment); have an Australian Business Number (ABN); and is a legal entity; or

The project must:

• seek to progress a device or system along the commercialisation pathway
• be innovative (i.e. new to market)
• be headquartered in NSW and demonstrate that most of the project activities will take place in NSW
• deliver economic, social and/or environmental benefit to NSW.

Applicants must hold the Intellectual Property or the rights to commercialise the device/system.

Applicants eligible for and/or who have received funding from the Medical Devices Fund are not eligible for the Physical Sciences Fund.

 
 

Get your NSW Physical Science Fund applications in now, time is limited.

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.

R&D Tax Incentive

Applications to register R&D activities for 20/21 FY must be lodged by the 3rd May Deadline

 

It is important to note that the 3rd May lodgement deadline for the 20/21 financial year R&D activities is looming fast for companies with a standard 30th June reporting year-end. This newsletter serves as your R&D lodgement reminder for May 2022’s deadline. Other entities with a substituted accounting period have 10 months from the completion of their financial year to register. Don’t miss out on your refund, get your 20/21 application in before the May lodgement deadline, contact us for assistance with your claim.

 
 

Index

1. Rates | Record Keeping Tips | May Lodgement Deadline (20/21) Information
2. Export Market Development Grant (EMDG) 22-23
3. NSW Export Assistance Grant
4. Our Services

 

The new rates of return are:

FY 2020-21

• Annual revenue <$20m – Company Tax Rate: 26% – Refundable Tax Benefit: 43.5% (if matched by tax losses) or 17.5% (when trading in profit)
• Annual revenue $20m-$50m – Company Tax Rate: 26% – Non-Refundable Tax Offset: 12.5%
• Annual revenue >$50m – Company Tax Rate: 30% – Non-Refundable Tax Offset: 8.5%

 

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% – 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% – 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.

 

R&D Tax record-keeping tips:

It is also important to note that the R&D Tax Incentive is a self-assessment program requiring claimants to maintain contemporaneous records that track the progress of their R&D activities and quantify the costs associated with the activities being claimed. If suitable records are not maintained claimants run the risk of having their prior year/s claims rejected if audited and forced to pay back the benefits received plus interest and penalties. Listed below are the types of records that would be appropriate to meet compliance requirements:

• populating an annual R&D project plan which identifies your eligible core and supporting activities
• writing monthly technical reports which report on the conduct of your R&D activities
• completing weekly time-sheets for your R&D staff against eligible activities to calculate the claimable apportionment of time
• taking photos evidencing stages of prototype work and;
• recording technical meetings
• tracking the material costs associated with each trial

 

Export Market Development Grant (EMDG) 22/23

Under the new EMDG program, eligible SMEs are able to apply for forward grant funding over multiple years to cover eligible marketing and promotional activities.

Grants will target eligible export-ready SMEs with an annual turnover of less than $20 million at three stages of their export journey:

• Tier 1: Eligible SMEs who are new to export – grants up to $80,000 over two years
• Tier 2: Eligible exporters who plan to expand their presence in export markets – grants up to $240,000 over three years
• Tier 3: Eligible exporters who continue to expand into new markets and make a strategic shift in their exporting business – grants up to $450,000 over three years

Applications are due to open in March/ April 2022, with grant agreements issued to applicants by June 30th for marketing activities covering the period 1st July 2022 to 30th June 2025 ( depending on the eligible tier).

The nominal benefit of the new pre-approval EMDG is to provide certainty of finance to exporters as well as faster access to EMDG funds. The intention is for applicants to submit marketing plans for up to three years to enable them to formalise Funding Agreements with Austrade, identifying which of their proposed export marketing expenses will be supported, with payments to be made by Austrade on a milestone basis. The EMDG program is an entitlement program.

 

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, you 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, totalling 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

– Don’t miss the May lodgement deadline for 20/21 FY –

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.

Australia’s $2b investment into the new Digital Economy

 

PM Morrison recently announced the new Digital Economy Strategy 2030 whereby it will be investing $2billion in settings, infrastructure and incentives to grow Australia’s digital economy. A complete version of the Digital Economy Strategy 2030 can be found here.

Listed below are the 8 areas in which the funds will be allocated, as further information comes to light we will provide further updates.

8 Focus Areas

1. Digital Skills
2. Artificial Intelligence
3. Enhancing Government Service Delivery
4. Investment Incentives
5. SME Digitalisation
6. Emerging Aviation Technologies
7. Data and the Digital Economy
8. Cyber Security, Safety and Trust

 

DIGITAL SKILLS

Building on the 2020 Job-ready Graduates Packages, the Australian Government is committing:

• $10.7 million for the Digital Skills Cadetship Trial to deliver work-based learning opportunities for in-demand digital jobs
• $43.8 million for the expansion of the Cyber Security Skills Partnership Innovation Fund to fund additional innovative projects to quickly improve the quality and quantity of cyber security professionals in Australia
• $24.7 million over six years for the Next Generation Artificial Intelligence Graduates Program to attract and train home-grown, job-ready AI specialists through competitive national scholarships
• $22.6 million over six years for Next Generation Emerging Technology Graduates Program that will provide more than 200 competitive national scholarships in emerging technologies.

Click here for more details
 

ARTIFICIAL INTELLIGENCE

The Australian Government is supporting Artificial Intelligence (AI) in Australia by:

• investing $53.8 million over four years to create the National Artificial Intelligence Centre that will drive business adoption of AI technologies by coordinating Australia’s AI expertise and capabilities
• providing $33.7 million over four years to support Australian businesses to partner with government to pilot projects for AI‑based solutions to national challenges
• investing $24.7 million over six years in the skills of the future by establishing the Next Generation AI Graduates Program to attract and train home-grown, job-ready AI specialists
• providing $12 million over five years to catalyse the AI opportunity in our regions by co-funding up to 36 competitive grants to develop AI solutions that address local or regional problems.

Click here for more details
 

ENHANCING GOVERNMENT SERVICE DELIVERY

The Government is investing in its own digital service delivery to enhance the services it provides to Australians and to save them time and hassle, committing:

• $200.1 million to enhance myGov to deliver a simpler and more tailored experience for Australians based on their preferences and interactions
• $301.8 million to enhance the My Health Record system, adding support for COVID-19 testing and vaccinations, connecting Residential Aged Care Facilities and connecting specialists in private practice and delivering improved telehealth, emerging virtual healthcare initiatives and digitised support across all stages of healthcare.

Click here for more details
 

INVESTMENT INCENTIVES

The Australian Government is empowering businesses to grow investment in digital technologies.

The Australian Government is delivering tax incentives for businesses to stimulate investment in digital technologies to enhance their productivity and grow and create jobs by:

• providing a digital games tax offset for qualifying Australian games expenditure to eligible businesses
• allowing taxpayers to self-assess the effective life of certain depreciating intangible assets
• undertaking assessment review of the venture capital tax concessions to ensure they are achieving their intended objectives.

Click here for more details
 

SME DIGITALISATION

The Digital Economy Strategy is supporting Australian businesses by:

• $12.7 million to provide independent advice to Australian small businesses to help them build their digital capabilities through the Digital Solutions – Australian Small Business Advisory Services program
• $15.3 million to enhance the value of electronic invoicing to help businesses reduce costs and increase productivity.

These investments build on the Government’s almost $800 million investment in the Digital Business Plan, which is helping businesses to use digital technologies to grow and create jobs as part of Australia’s economic recovery.

It also complements the Digital Business-to-Business (B2B) Partnerships Initiative that will leverage the trusted relationships that Australia’s corporate sector has with SMEs to promote the adoption of, use of and access to digital products and services.

Click here for more details
 

EMERGING AVIATION TECHNOLOGIES

The emerging aviation sector is evolving to support new delivery methods and logistics services in support of regional and urban Australians. The Australian Government is partnering with other levels of government and stakeholders in this rapidly-emerging sector, delivering:

• the National Emerging Aviation Technology Policy Statement to set the framework for managing these new technologies
• $32.6 million over two years for an Emerging Aviation Technology Partnerships Program to support the use of emerging aviation technologies to address priority community, mobility and cargo needs in regional Australia
• the framework for a Drone Rule Management System
• scope for the development of the National Drone Detection Network.

Click here for more details
 

DATA AND THE DIGITAL ECONOMY

Australian Government data initiatives supporting the digital economy include:

• an Australian Data Strategy to create a data-driven economy through better data use
• $111.3 million to support the acceleration of the Consumer Data Right rollout
• $40.2 million to deliver the Digital Atlas of Australia
• $16.5 million for a pilot program to make the Australian Government’s data assets discoverable and support whole-of-economy reuse.

Click here for more details
 

CYBER SECURITY, SAFETY AND TRUST

New investments under the Digital Economy Strategy in Australia’s cyber security, safety and trust include:

• $31.7 million to secure our future connectivity using 5G and 6G mobile networks
• improving standards for trusted identities that underpin the digital environment
• strengthening Australia’s data security settings through the development of a National Data Security Action Plan
• piloting Cyber Hubs to improve resilience and cyber security maturity of government agencies
• $16.4 million over three years for the Peri-Urban Mobile Program to improve mobile phone connectivity in the bushfire-prone areas of the peri-urban fringe of Australia’s major cities.

Click here for more details

 
 

What do you think about Australia’s 2030 Digital Economy Strategy?

 
 

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.