Business Tax Incentives in Australia

Government Grants and Business Tax Incentives

In it’s efforts to help Australian industry and small business to better compete in today’s economy, several programs issuing government grants are offering tax incentives, refunds and low interest loans to qualifying participants. These small business grants and tax relief programs are designed to stimulate growth in varied sectors of our economy, ranging from green loans to research and development.

 

In this article, we will take a quick look at three of these government funded initiatives to give you a better idea of the capital being offered by these Australian government grants, the potential tax credits that are available, and what this could mean for your business.

 

Tax Concessions For Research and Development

Reducing expenses is simply good business. In fact, any reduction in expenditures becomes essentially revenue to your bottom line. The Research and Development Tax Concession Program, though technically not a participant of government grants is still a tremendous incentive by providing tax credits for research and development within Australia. Qualifying products are defined as any new or innovative product, service or technology. This program is not limited to any particular industry or sector and offers up to 125% tax credits for any and all expenditures that qualify.

 

 

Tariff Exemptions

This tariff exemption scheme, also known as the “Enhanced Project By-Law Scheme” (EPBS) provides a 5% tariff relief of all qualifying imported goods. This reduction in import duties was designed and implemented to give Australian business greater opportunities to compete globally for lucrative contracts with international competitors. These federal policies reduce the costs of doing business for any company involved in product imports. Again, these are nothing more then Australian government grants when you consider that reduced costs equal revenue… which equals capital.

 

Green Loans and Initiatives

The federal government is also doing it’s part to stimulate growth in the building and construction sectors by offering green loans and tax breaks through its “Green Building Fund”. Not directly affiliated with the Small Business Grants department, the funding and tax breaks provided include the development of new projects, as well as retro-fits for existing buildings as well. New legislation to provide additional funding for green loans is pending, and should compliment other programs currently available in the form of small business grants.

 

 

How Can This Help Your Business?

As you can see from these three examples, the progressive policies of the Federal Government are doing what they can to assist all companies in virtually all industries and sectors to remain fiscally strong and competitive. The key take away for anyone reading this article should be that government grants can be found in several departments and are somewhat hidden within these departments and within the tax codes as well. Tax incentives, when understood and used correctly can often become additional revenue. This, of course, becomes increased capital and is not much different from Australian Government Grants when you look at your companies bottom line at the end of the year.

 

 

 

 

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