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Starting or growing a small business in Australia can be exciting, but let’s be honest – it’s also a big commitment. Whether you’re just developing your idea, ready to launch your company, or looking for that boost to take your business to the next stage, access to funding is often the key that unlocks your success.
For many entrepreneurs and small business owners, the good news is that federal government grants for small businesses are available across a wide range of industries, business types, and growth stages. But finding the right grant – and knowing how to apply – can often feel overwhelming.
So, if you’ve been searching for financial help for small businesses, wondering about federal grants for small business, or exploring government support for small business to help start up, you’re in the right place. Let’s walk through what government grants are, how they work, what’s out there, and what you’ll need to do to secure the funding (and compliance) your business needs.
What Are Grants in Business?
A business grant is financial assistance provided by the government (or occasionally a private body) that doesn’t have to be repaid, unlike a loan. Grants can help with things like starting a business, expanding operations, investing in equipment, job creation, innovation, research, export readiness, and more.
When we talk about government business start up grants or government grants for new businesses, we’re referring to specific funding programs with set eligibility rules. Unlike loans or private investment, a grant is focused on public benefit – the aim might be job creation, new technology, economic stimulus, or regional growth.
Remember: there’s no such thing as “free money.” All grants involve an application process, are competitive, and usually require reporting on outcomes. But if you meet the criteria, applying for a grant can be a smart way to accelerate your business goals without increasing your debt load.
Why Does the Government Offer Grants to Small Businesses?
The federal government sees small business as a key driver of Australia’s economy. Providing financial help for small businesses, especially those innovating, growing, or serving the community, can have broad social and economic benefits – like new jobs, more resilient regions, or better technology.
Funding is targeted where it can have the most impact. So you’ll see grants prioritising startups, businesses improving sustainability practices, exporters, advanced manufacturers, and companies investing in research, employment, or digital transformation. Having a clear public benefit will help your application stand out.
Which Types of Grants Are Available for Small Businesses?
There are lots of federal grants for small business – as well as state/territory or local council grants – available at any given time. While the list changes regularly, some of the most common categories of government support for small business include:
- Business Start-Up and Expansion Grants: Funding to launch or scale your operation.
- Innovation & R&D Grants: Support for research, development, and commercialisation of new products or services.
- Regional Development Grants: Help for businesses in rural or regional areas to grow and create jobs.
- Export and Trade Grants: Programs to assist businesses looking to expand overseas.
- Digital Transformation Grants: Help for small businesses adopting new tech or digital tools.
- Training & Skills Development Grants: Funding to upskill business owners or employees.
- Employment or Wage Subsidy Programs: Assistance for hiring staff, trainees, or apprentices.
- Industry-Specific Grants: Targeted to sectors like manufacturing, tourism, agriculture, health, or clean energy.
If you’re interested in seeing what grants available might fit your specific needs, business.gov.au always lists up-to-date programs and grant opportunities.
How Does a Government Grant Differ From Other Support?
It’s easy to get confused between grants, loans, and tax concessions or rebates. Here’s a quick breakdown:
- Grants: Non-repayable funding for a specific purpose or project. Application needed and reporting required.
- Loans: Repayable funds, generally from banks or private lenders. You usually need to give collateral and pay interest.
- Tax support or rebates: Reduce the amount of tax your business owes – for example, the instant asset write-off or R&D Tax Incentive.
Sometimes all three options exist for a single goal – for instance, helping businesses adopt clean energy or hire new employees. Understanding which type of support best fits your business stage and goals is key.
Which Federal Government Grants Are Available for Small Businesses Right Now?
While the specifics change over time, here are some of the main federal government grants for small business programs you should know about:
- Entrepreneur’s Programme: Offers tailored advice, grants, and workshops to help businesses innovate, grow, and compete. Includes Accelerating Commercialisation, Growth Services, and Innovation Connections programs.
- R&D Tax Incentive: Provides tax offsets for companies investing in research and development. Not a “grant” as such, but a major source of support for high-growth businesses.
- Export Market Development Grant (EMDG): Assists businesses meeting export-related expenses, making international expansion more accessible.
- Australian Apprenticeships Incentives Program: Offers support payments to businesses employing new apprentices or trainees, mainly for skills shortage areas.
- Industry-Specific Grants: Targeted funding for sectors like manufacturing, clean energy, tourism, and health – for example, the Manufacturing Modernisation Fund or Clean Energy Finance grants.
You’ll find that most federal programs are competitive and focused on specific goals rather than general business expenses. If your project doesn’t match the requirements, check for state or local programs as well.
How Do I Find Government Grants for My Business?
Finding government grants for business or government grants start up business opportunities starts with a bit of research:
- Business.gov.au: The government’s official portal regularly updates available grants, incentives, and support programs. You can filter by industry, location, or business need.
- State, Territory, and Local Grants: Don’t just check the federal level. Every state and council has its own programs, especially for new businesses.
- Industry Associations and Chambers: Sign up for newsletters to hear about open grant rounds early.
The process can be competitive – many grants only open for applications once or twice per year. Make a calendar of deadlines and allow plenty of time for your application.
What Are the Typical Eligibility Criteria for Business Grants?
Each grant program will have its own detailed criteria, but to give you an idea, most government assistance for small businesses will require:
- Australian Business Number (ABN) registration
- Proof of being a small business (e.g. less than 20 employees, turnover below a set amount)
- Operation within a specified industry, region, or field
- A business plan or detailed project summary
- Ability to show public benefit, innovation, or job creation
- Compliance with Australian laws (tax, workplace, Fair Work, etc.)
- Willingness to report on project outcomes
Most grants will not fund 100% of your project – you’ll usually need to show you can co-fund it (for instance, a 50-50 split).
How Do I Apply for a Small Business Grant?
Each program will have its own application process, but the basic steps are:
- Find a suitable grant. Research what’s available and match your business/project to the program goals.
- Check your eligibility. Review all criteria in detail (sector, business size, location, etc.).
- Prepare your documentation. This may include your business plan, project budget, financials, and evidence of compliance with laws.
- Apply before the deadline. Many grants have narrow application windows – be prepared.
- Respond to requests for further info. Some programs may ask for more detail or a pitch presentation.
- If successful, meet your reporting requirements. Most grants require you to show how the money was spent and what results were achieved.
A strong application will clearly explain how your business/project matches the grant objectives and delivers community or economic benefit. Good grant writing is about clarity and evidence!
What Should I Include in My Business Plan or Grant Application?
A persuasive government grant application will generally need:
- Description of your business: What you do, who you serve, and your achievements so far.
- Project details: What you will use the grant money for (equipment, research, hiring, etc.).
- Clear budget breakdown: Major expenses, timeline, and your own contribution.
- Evidence of need or impact: Jobs created, regional benefit, export readiness, etc.
- Risk assessment: Identify major risks and how you’ll manage them.
- Evidence of compliance and governance: Proof of ABN, licences, workplace policies, insurance, and strong contracts.
You’ll need to tie your project back to the grant objectives. If a grant supports technology adoption, show exactly how new software or hardware will upgrade your operations and what flow-on benefits it will create (such as job growth or reducing your carbon footprint).
Do I Need to Register a Business to Apply for a Grant?
Almost all government grants for business require your business to be properly registered. This generally means:
- ABN registration
- Business name registration (if using a trading name)
- Company registration (if you are setting up a company structure)
Choosing the right business structure is an important early step. The main options are:
- Sole Trader: Simpler and low cost, but with unlimited personal liability.
- Partnership: Shared ownership and responsibility, but partners are jointly liable.
- Company (Pty Ltd): Offers limited liability – the company is a separate legal entity. Often required for larger grants and for credibility with government assessors.
If you’re weighing up your options, see our full guide on ABN vs ACN and sole trader vs company.
What Legal Documents Will I Need for a Successful Grant Application?
A solid legal foundation is critical – most grant assessors want to see that your business is trustworthy, compliant, and ready to deliver on your proposal. Depending on your business and the grant, you may need:
- Business Plan: A clear outline of your goals, strategy, finances, and operations.
- Business Registration Documents: Proof of your company, business name, or trust setup.
- Customer Contracts or Terms and Conditions: Evidence of your service obligations, especially for customer-facing businesses.
- Privacy Policy: If your project will collect customer or client data.
- Employment Agreements and Workplace Policies: Essential if you’re hiring new staff with grant support.
- Insurance Certificates: Public liability, professional indemnity, and/or workers compensation as needed.
- Shareholders Agreement: If you have co-founders or investors, this sets out rights and obligations formally.
Having these documents in place not only strengthens your grant application but also dramatically reduces risk as your business grows. You may also be required to show evidence of intellectual property ownership (such as a trade mark registration or patent filing) if your project involves new technology or branding.
Are Government Business Grants Taxable?
Most grants paid directly to your business are considered assessable income and will need to be declared in your company’s tax return. You should factor this into your business budget, as it may affect your tax planning. Some grants, however, are structured as tax offsets or rebates (like the R&D Tax Incentive) and work differently.
Always check with your accountant or legal advisor about tax implications for your specific grant.
Tips for Securing Federal Government Grants for Small Business
- Start with a clear plan: Know exactly what you want to achieve, how you’ll do it, and why it matters.
- Be grant-aware early: Factor grants into your planning – some programs only cover new projects, not work already underway.
- Stay compliant: Registration, licenses, workplace documents, and good record keeping are essential.
- Support your application with strong evidence: Letters of support, case studies, and proof of public benefit are persuasive.
- Don’t rely on grants alone: Have back-up funding – grants are competitive and can take time to process.
- Seek legal advice where needed: Legal experts can help with eligibility, structure, and the right contracts.
Key Takeaways
- Federal government grants for small business provide essential financial help for startups and growing businesses, but require careful application and compliance.
- Identify grants that suit your industry, location, business stage, and project goals, and check eligibility carefully before applying.
- Successful applications require a clear business plan, evidence of need or impact, budget details, and proof of legal compliance.
- Register your business, choose the right business structure, and get essential legal documents in order before applying for grants.
- Prepare for tax implications and reporting requirements after receiving a grant, and always consider professional advice to maximise your chances.
If you would like a consultation about accessing federal government grants for your small business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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