Complete guide on grants for small business startups in Australia

If you own a newly established business in Australia — or are thinking about starting one — you might be looking for funding to support day-to-day operations and drive growth.

A business startup grant is one of the options available. This guide will explore how government grants work and what you need to do to apply for one. We’ll also cover some of the available national and regional grants available in Australia.

Table of contents
Understanding how government grants work Things to know Making strategic financial decisions Available government grants in Australia National grants Regional startup grants Alternate business startup funding options Spend less of your grant money with Wise Business FAQs

Understanding how government grants work

Government grants are financial aids that support small businesses. They often take the form of non-repayable sums of money, but also include tax rebates, sponsorships, and subsidies.

Grants are often linked to the government’s policy objectives. That’s why you’ll see many encourage environmental sustainability or support pioneering research in tech and science. Others, especially those aimed at startups, have a less defined and broader objective of stimulating economic growth.

Grants are typically awarded at the federal or state level in Australia. Larger, national initiatives are run by government departments and agencies like CSIRO, while regional programs are managed by state agencies and local councils. You can access and apply for these grants via platforms such as GrantConnect and Austrade.

To ‘win’ a grant, a business must meet the eligibility criteria and submit a formal application¹. Unlike loans and most other startup funding options in Australia, grants don’t usually have to be repaid. This makes them an attractive option for those who are looking for a financial boost but also don’t want to be burdened with debt.

Things to know before applying for a business start up grant

There is high demand for government grants. The application process is competitive, often with limited funding available. There’s also no certainty that an application will be accepted. You’ll have to put forward a compelling case for why you need funding, the problems it will solve, and how you will use it.

Every grant also has specific eligibility criteria, which must be met to apply. Common eligibility factors include:

• Australian business number (ABN): You’ll need an ABN — a unique 11-digit number — to apply for most government grants. It does not cost to get an ABN which can be acquired by signing up to the Australian Government’s Business Registration Service. At the same time, you are also able to register a business name.
• Goods and services tax (GST): You can use your ABN to register for goods and services tax (GST), which is a requirement for most grants.
• Australian company number (ACN): You might also require an ACN number. This is issued to incorporated companies. You won’t have one of these if you’re a sole trader or a partnership.
• Business bank account: If you’re just starting a business, you’ll need a business bank account, too. Check out our blog on how to open a business bank account in Australia.

Other factors will vary based on the type of business grant. Eligibility is often based on business size, business age, turnover, and industry.

For full clarity on the eligibility requirements and guidelines for application and approval, we recommend referring to the official site for the grant-making organisation or agency.

Making strategic financial decisions with your startup funding

Securing a grant is a huge step forward for a startup, but the work isn’t over yet. You must use those funds wisely to innovate, grow, and thrive. This is where strategic financial management comes in. Here are some key areas to focus on with your startup grant:

• Cash flow management - You need to know exactly what’s coming in and out of the business. Balancing revenue with costs will allow you to allocate enough resources to cover day-to-day expenses, while still investing in growth opportunities.
• Risk management - Ambition and innovation can get you far in business, but don’t be reckless with funds. You still need to manage risks and plan for worst-case scenarios. Creating an emergency fund will ensure your startup can weather unforeseen expenses.
• Scalability planning - Successful startups don’t stand still. Your financial plans must be flexible and support scaling operations and expanding into new markets.
• Leverage cost-effective tools - Startups now have the luxury of accessing affordable software that not only streamlines and automates key processes, but cuts costs too.
• Investment in the right areas - Refer back to your business plan — it’s still useful! Lean on your projections for costs and prioritise investment in areas that will support growth while delivering ample returns.

For instance, startups dealing with transactions across multiple currencies quickly find that high fees and unfavourable exchange rates make doing business very costly. Funds are frittered away on hidden fees and volatile rates, rather than being funnelled into growth-focused initiatives and strategic investments.

This is where Wise can save the day. Unlike traditional banks, Wise Business provides faster, more transparent, and cost-effective international money transfers across borders. You can also hold, manage, and convert funds in multiple currencies without being exposed to huge conversion fees.

Whenever you need to convert from one currency to another you’ll get the mid-market exchange rate with low fees from 0.65%^14.. The cost savings can be transformative, allowing you to direct grant funds towards valuable business activities like product development and marketing.

Available government grants in Australia for small business startups

Grants come in various forms. It’s not always a case of direct funding. There are also grants and programs that provide subsidies and rebates, tax benefits, sponsorship, and advice. Each of these can offer value depending on business needs.

• Subsidies and rebates: Startups can reduce overheads by getting specific operating costs reimbursed through financial incentives.
• Tax benefits: Startups can reduce tax liability and free up clash flow by investing in R&D and other projects and claiming a portion back as tax rebates or credit.
• Sponsorship: Startups can forge partnerships and receive funding in return for brand exposure.

National grants for small business startups

There are hundreds of free government grants for small business start-ups grants in Australia. National programs tend to be more competitive with wider eligibility criteria and higher funding.

Among the most prominent and useful grant programs for startups, include:

• CSIRO Kick-Start helps business with less than $10m in turnover to access up to $50,000 in funding to undertake research and development projects².
• The Research and Development Tax Incentive (RDTI) also encourages research and development by offering tax offsets for companies with a turnover under $20m³.
• The Small Business Energy Incentive helps startups save on energy costs, providing a tax deduction of up to $20,000 for assets and investments that drive energy efficiency⁴.
• The Small Business Technology Investment Boost aims to boost digital transformation, offering a 20% tax deduction for businesses with a turnover under $50m who invest in technology such as computers, telecoms hardware, and e-commerce platforms⁵.
• The Small Business Income Tax Offset enables unincorporated small business with turnover under $5m to write off $1,000 per year in tax offsets⁶.

Regional startup grants across Australia

Regional startup grants cater to the unique demands of local areas and help small business in major cities and more remote locations to address unique challenges and drive innovation and growth.

Some of these grants might be targeted at either ‘metropolitan’ or ‘regional’ areas to ensure a level playing field of financial support across the state.

Queensland business startup grants

• The Recycling Transport Assistance Package aims to reduce the environmental impact of business and enhance sustainability by providing financial assistance for transporting materials for recycling⁷.
• The Female Founders Co-Investment Fund offers matched grant funding for startups founded by women who are currently approaching investors to raise capital to grow and innovate⁸.

New South Wales business startup grants

• The SafeWork small business rebate allows businesses with fewer than 50 full-time workers to claim a $1,000 rebate for health and safety items⁹.

Victoria business startup grants

• The Industry Growth Program offers grants up to $5m for SMEs who can support the government’s National Reconstruction Fund (NRF)^10.

Western Australia business startup grants

• SPURonWA grants are awarded annually to startups to develop innovative location based products which can address the challenges with WA’s vast and remote geography¹¹.

Aboriginal grants for starting a business

If you identify as a first nations person, you can apply for grants for start a new indigenous business or corporation. These are run by Indigenous Business Australia (IBA).

One of the most relevant is the Loans for Aboriginal and Torres Strait Island owned small businesses, which lets you apply for a loan between $10,000 to $5m to get your business off the ground and support long-term growth¹². The loan can be used to buy commercial assets and support working capital requirements.

To be eligible, you must create and submit a commercially viable business plan.

For startups already trading, there’s also the Start-Up Finance Package¹³. This awards up to 30% or $150,000 towards a business loan to cover investment in assets that enable a small business to increase its operational capacity.

Alternate business startup funding options

Small business start up grants are not the only funding option available. There are alternative sources, though these typically involve giving up equity or taking on debt.

Business Loans

Startup business loans are the most accessible, providing funds almost immediately if you are eligible based on an initial assessment. You can usually get loans to purchase business assets or for an injection of capital to support continuity and growth.

Venture capital

Sourcing venture capital can be a more exhaustive process, but particularly rewarding for successful startups with a unique product or innovative business model. You must give up equity in your business to secure investment from venture capitalists, but it’s possible to raise significant sums and get mentorship and advice as an additional perk.

Crowdfunding

Crowdfunding — the practice of raising money from a large pool of people via online platforms — is an option if you can’t access capital from traditional sources. It’s low risk and you won’t have to take on debt. However, it can be challenging and time-consuming to create a campaign that resonates with audiences.

Spend less of your grant money when paying overseas with Wise Business

While you’re researching grants and funding options for your startup or small business, it’s also worth making sure you’re set up with the right business account.

Opening a Wise Business account gives you the ability to hold and exchange 40+ currencies at once. You can send fast, secure payments to 160+ countries, and get account details to get paid in 8+ currencies like a local.

Whenever you need to send, spend or exchange foreign currencies, you’ll benefit from the mid-market exchange rate, with low, transparent fees.

You’ll also benefit from all of these features with Wise Business:

• No ongoing fees, minimum balance requirements or foreign transaction fees
• Debit and expense cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions
• Use the powerful Wise API for automation and streamlining workflow

Sign up for the Wise Business account! 🚀

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FAQs on business start up grants

How do I apply for startup grants in Australia?

To apply for an Australian grant, you must collect evidence to demonstrate your eligibility, prepare an online written application and then submit it through the relevant government or agency website. You can use the business.gov.au website to find suitable grants for your business.

How much money is a micro grant?

Micro grants are designed to kick-start business ideas with limited funding and are typically worth between $250 and $1,000. They generally support small-scale initiatives such as business startup costs.

What is the $10,000 small business grant in NSW?

The $10,000 small business grant was a temporary measure aimed at supporting enterprises in New South Wales that experienced a significant decline in revenue during the pandemic.

What is the Australian small grants program?

The Australian small grants program covers a range of funding opportunities designed to boost economic development and support small businesses. The grants help startups to address environmental and economic challenges and be a force for good in local communities.

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Sources:

1. Australia Business Gov - Check If You're Ready to Apply for a Grant
2. CSIRO Kick-Start
3. Research and Development Tax Incentive (RDTI)
4. Small Business Energy Incentive
5. Small Business Technology Investment Boost
6. Small Business Income Tax Offset
7. Queensland - Recycling Transport Assistance Package
8. Queensland - Female Founders Co-Investment Fund
9. New South Wales - SafeWork small business rebate
10. Victoria Grants & Programs
11. Western Australia - SPURonWA grants
12. IBA - Business Loan
13. IBA Start-Up Finance Package
14. Wise send money fee: The fee mentioned is at the time of publishing. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.