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Government Grants

What is a grant?

A grant is money your business can receive without having to pay it back. Both federal and state governments offer grants to support business growth, innovation, exports and digital adoption.

Federal Government Grants

You can search all national programs using the business.gov.au grants & programs finder. Filter grants by location, industry, business structure, business status, project type etc.

Examples of some ongoing Federal Grants:

Industry Growth Program – Supports startups and SMEs scaling innovative ideas
CSIRO Kick-Start Program – Provides vouchers to work with CSIRO scientists on R&D projects
Advancing Renewables Program – Supports renewable energy and clean-tech initiatives
Key Apprenticeships Program – Offers financial support for apprentice training

State-Based Grants

The grants finder above also includes many state programs, but for the latest or highly specific opportunities, check your state or territory government website directly:

Tips for applying for grants

Plan ahead: Many grants have strict deadlines – it’s best to apply early
Check eligibility: Each grant has specific requirements
Use multiple sources: Search both federal and state portals
Prepare properly: Have key documents ready and clearly explain your project
Get support if needed: Professional advice can improve your chances

Tax Incentives and Concessions

What are tax incentives and concessions?

Tax incentives and concessions help small businesses pay less tax and improve cash flow.

Some are federal benefits – such as lower tax rates, tax offsets, credits or early deductions – while states may offer additional incentives (for example, payroll tax relief).

Together, these programs help eligible businesses keep more money to reinvest in growth, innovation and hiring. This guide focuses mainly on federal benefits.

R&D Tax Incentive (Key Benefit for Tech Startups)

The R&D Tax Incentive allows eligible companies to claim up to 43.5%–46.5% of eligible R&D expenses as a refundable tax offset.

This is especially useful for:

Software development
SaaS platforms
AI and fintech startups
Product innovation

Many startups use this as a form of non-dilutive funding (funding without giving up equity).

How it works:

Register your R&D activities within 10 months after your income year ends (e.g. 30 June year-end → deadline is 30 April the following year)
Apply through the R&D Tax Incentive customer portal
Claim the benefit in your company tax return using a R&D schedule (click to see a sample)

Tips for R&D claims:

Make sure it qualifies: Work must involve real experimentation
Keep good records: Track experiments, results and costs
Separate expenses: Make sure you only claim R&D-related costs
Meet deadlines: Late registration may mean missing out
Stay consistent: Align your AusIndustry and ATO information
Get advice if needed: Helps avoid errors and over-claiming

Resources:

R&D Tax Incentive Guide to Interpretation

Checklist for claiming R&D tax incentive

Research and development (R&D) tax incentive calculator

Registration - application form questions

Common Tax Concessions for small business

Australian government offers a range of tax concessions to help small businesses reduce tax, improve cash flow and simplify reporting.

Eligibility varies by business structure and aggregated annual turnover, so it's worth checking your position against each threshold and additional criteria every year before applying a concession.

Common Concession	What it does*	Turnover Threshold*	Applies To	ATO Eligibility
Concessional income tax rate	Pay a reduced corporate tax rate of 25% instead of the standard 30%	< $50M (and ≤80% passive income)	Companies only	Base rate entity
Instant asset write-off	Immediately deduct the full cost of eligible assets (up to $20,000 per asset) instead of depreciating over time	< $10M	All structures	Instant asset write-off
Small business pool	Assets worth $20,000+ that aren’t immediately written off go into a small business pool. Depreciation is 15% the first year and 30% thereafter; if the pool drops below $20,000, it can be fully written off	< $10M	All structures	Small business pool
Immediate deductions for start-up costs	Immediately deduct capital start-up costs (legal, accounting, ASIC fees) instead of writing off over 5 years	< $50M	Companies, trusts and partnerships only	Immediate deductions for start-up costs
Immediate deductions for prepaid expenses	Deduct prepaid expenses in full in the year of payment, rather than apportioning across the covered period	< $50M	All structures	Prepaid expenses
Simplified trading stock rules	Skip the formal year-end stocktake if the estimated change in stock value is $5,000 or less	< $50M	All structures	Trading stock
Small business CGT concessions	Reduce, defer or eliminate CGT when selling an active business asset across four available concessions	< $2M turnover or net CGT assets < $6M	All structures	CGT concessions eligibility
Small business restructure rollover	Transfer active assets to a new entity structure without triggering capital gain implications, provided it is a genuine restructure	< $10M	All structures	Restructure rollover
Small business income tax offset	Reduce tax on small business income by up to $1,000 per year (offset rate of 16%, non-refundable)	< $5M	Individuals	Small business income tax offset

*The turnover threshold may be based on the entity’s aggregated turnover. Please refer to the ATO link for further details on the concession.

Important notes:

Turnover thresholds are based on ATO definitions and may change
Some concessions have additional eligibility criteria. Always check the ATO links for detailed rules
Consider professional advice to ensure correct application

Resources:

If You’re an Investor

If you’re investing in early-stage startups, Australia offers attractive tax incentives to improve returns. If you invest in a qualifying Early Stage Innovation Company (ESIC), you may receive:

A 20% non-refundable tax offset (capped at $200,000 per year) plus
Favourable capital gains tax (CGT) treatment – meaning gains on shares held between 12 months and 10 years can be tax-free, while capital losses on shares held less than 10 years must be disregarded

These incentives are designed to encourage investment into innovative, high-growth businesses.

However, both the investor and the company must meet specific criteria, so it’s important to confirm eligibility before investing.

Early Stage Innovation Company (ESIC) criteria

Very broadly, the business must be genuinely early-stage and focused on innovation. This typically means:

Be an early-stage Australian company (typically within 3–6 years)
Have low income (≤ $200,000) and expenses (≤ $1 million)
Not be listed on a stock exchange
Be developing a new or significantly improved product or technology with strong growth potential

It must also pass either:

A 100-point innovation test (e.g. R&D activity, patents or grants) or
A principles-based innovation test, showing it is genuinely innovative, scalable and targeting large markets

In practice, this means not every startup qualifies. For example, a typical consulting business or local café won’t meet the innovation criteria, whereas a tech startup building new software or IP-driven products might.

Sophisticated investors

Many early-stage investment opportunities are only available to ‘sophisticated investors’ who are considered financially experienced or well-resourced enough to assess investment risks without needing full disclosure documents.

You may qualify as a sophisticated investor (certified by an accountant) if you:

Earn at least $250,000 per year (for the past two years) or
Have net assets of at least $2.5 million
Invest $500,000 or more in a single opportunity or
Have significant investment experience or control substantial assets (typically $10+ million)

Being a sophisticated investor gives you access to a wider range of private startup deals. However, it also means fewer regulatory protections. So it’s important to carefully assess each opportunity and seek professional advice before investing.

Recourses:

ESIC decision tool
The sophisticated investor test
Qualifying as an early stage innovation company

Final takeaway

Australian government offers a great variety of grants, tax incentives and investor benefits to support startups, especially in tech and innovation.

Understanding what’s available (and what you qualify for) can make a significant difference to your funding, cash flow and growth.

How can ANNA help with your cash flow?

Managing day-to-day cash flow is key as your business scales. Tools like Pots (separate money buckets) make it easier to set aside funds for tax, GST, or upcoming expenses, so you’re not caught short when payments are due. You can also set spending limits on your ANNA card to help control expenses and stay within budget as your business grows.

Together, combining grants, tax incentives and smart cash flow tools can help you stay in control financially – so you can focus on growing your business with confidence.

Register a Company with ANNA

ANNA +Taxes is available for newly registered companies - first 1,000 customers get 6 months free. We auto-categorise your transactions and take care of your lodgements.

Disclaimer

This content is general information for small businesses. You can only use the document for your noncommercial purposes. In no event shall we be held liable for any claims arising due to, or dependencies on the accuracy and completeness of the content provided. ANNA does not provide personal or professional financial, accounting or tax advice and you should consult with external professionals for advice tailored to your situation prior to making any decisions.