Export Market Development Grant (EMDG) – applications close 30th November for forward funding over the next 2 – 3 years under the new EMDG program – don’t miss out
Modern Manufacturing Initiative (MMI) – applications for Round 2 of the Integration and Translation funding streams will be announced soon – prepare now and don’t miss out
Modernisation Manufacturing Fund (MMF) – applications for Round 3 will open in early December – prepare now and don’t miss out
R&D Tax Incentive – applications for 20/21 financial year R&D activities close on 30th April 2022 – prepare now don’t miss out
Export Market Development Grant (EMDG)
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 from 1 July 2021.
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
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.
TCF/RYAN Services will help exporters identify eligible marketing activities and assist in preparing the export plan, compiling a marketing budget and lodging the application. Thereafter, exporters will report their milestones to Austrade by providing the necessary substantiation. Auditing of milestone reporting is also included in our service.
Modern Manufacturing Initiative (MMI)
The $1.38 billion Modern Manufacturing Initiative (the initiative) is a key element of the Strategy and will run over four years from 2020-21 to 2023-24. The initiative aims to stimulate business investment in the manufacturing sector by addressing barriers to scale and competitiveness for Australian manufacturers. It aims to build manufacturing capabilities and networks, lift productivity, create jobs, build global competitiveness and boost the export potential of Australian manufacturers.
The Initiative will encourage businesses to invest in their future and be part of a growing and dynamic Australian manufacturing industry. The Australian Government will co-invest to help businesses achieve competitiveness and build scale. Through this initiative, the Australian Government is seeking to harness the unique characteristics of each priority area and help businesses invest in strategic projects to overcome industry-specific challenges.
The MMI grant program is competitively assessed and operates under three funding streams:
Manufacturing Translation Stream: helps Australian manufacturers translate high-quality research and ideas into commercial outcomes – the grant rate is 50% of eligible project costs. The minimum grant is $1m and the maximum is $20m. Capital investment is included.
Manufacturing Integration Stream: helps Australian manufacturers to access domestic and global supply chains and produce and distribute quality products and high-value services into them- the grant rate is 50% of eligible project costs. The minimum grant is $1m and the maximum is $20m. Capital investment is included.
Manufacturing Collaboration Stream: will bring together business, researchers, and investors to build commercial outcomes – the grant rate is 1/3 of eligible project costs. The minimum grant is $20m and the maximum is $200m. Capital investment is included.
The six national priority manufacturing sectors who can apply are:
Space, Medical Products, Resource Technology, and Critical Minerals Processing, Food and Beverage, Defence, Recycling and Clean Energy
Round 1 of the Translation, Integration, and Collaboration grants streams across all six priorities sectors are now closed. The good news is that Round 2 for the Integration and Translation streams will open later this year. We don’t have exact dates as yet but if Round 1 was anything to go by, interested applicants are only provided with a 4-week window from the announcement to the close date.
TCF/Ryan is working with Businesses now to prepare the necessary documentation in anticipation of the Round 2 opening dates. If you are project-ready and in one of the six priority sectors, give us a call to discuss.
Manufacturing Modernisation Fund (MMF)
The Manufacturing Modernisation Fund (MMF) provides competitively assessed grants of up to $1 being 25% of total project costs to assist local SME manufacturers within the 6 national manufacturing priority sectors to modernise their factory by purchasing and installing new state of the art plant and equipment and upskill/ employ new staff.
Round 3 will open in December this year and close in late January. We encourage serious companies with compelling, ready-to-go projects to commence preparing their project plans and applications NOW to ensure a truly competitive application can be lodged.
If you require assistance, our team of experienced consultants can assist you to prepare and lodge a well-presented application, having prior success in the previous rounds.
R&D Tax Incentive
Applications to claim 20/21 financial year R&D activities/ expenses close on the 30th April 2022 – the new rates of return are:
· 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%
· 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.
TCF can assist with free, no-obligation services such as:
- Scope your potential to claim various grant programs
- Assist with the preparation and lodgment of grants 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
Give us a call. We may be able to help your business.