bruce patten from pattens group presents at grants connector sydney 2012, organised by business...

Accessing Grants

(like a professional)

Bruce Patten

Pattens Group

A$50 Billion Lottery

Chance of winning 1/25million

Buy a ticket?

Buy los of tickets?

Tell family and friends?

Use a system to chances

Take all winnings or leave some

How much investment is it worth?

Grants?

Fairy tales or legend?

Once upon a time…..

Endangered species?

Worthless or priceless?

Challenging quest?

Rainbow’s end?

Cost you more than you get.

Your business priority is….

1. Increased Sales

2. Lower Expenses

3. Additional Cash

4. More Profits

5. Government Grants

6. All the above

7. All the above and more

Business Grants

Fall into 2 broad categories:

Selected Industries

TCF, Medical, Steel, Cars, Defence,

Clean Tech, Agriculture and Farming

Approved Activities

Manufacturing, Export, Innovation,

Business efficiency, regional, equity.

GST Refund

Expenses exceed income

BAS on accruals basis

Refund of GST before paid

Tax Return can be Cash

Research & Development

What is R&D? (Note the “D” word)

Trial and error (novelty)

Technical risk (failure)

Financial risk

Ownership of Results

R&D Tax Incentive

Scheme’s objective:

Encourage high risk R&D

Prohibitive cost

Uncertain return

Benefit Australian economy

R&D Tax Incentive

Refund of 45% available

Available to Companies

No maximum threshold

Minimum claim $20k

Claim annually in arrears

Must register before lodging tax return

R&D Tax Incentive

Eligibility criteria:

Applicant must be:

- Australia resident corporation

- Foreign Corp with perm Australian

establishment and tax Agreement

- Public trading trust with Corp trustee

- Tax Exempt Entities ineligible

R&D Tax Incentive

Other eligibility requirements :

on own behalf

exploitation of results

carried out in Australia

Australian content

Overseas content

claim within 10 months end FY

R&D Tax Incentive

Eligible R&D activities must be

on claimant’s own behalf and either

Core R&D

Supporting R&D

R&D Tax Incentive

Exclusions

Market research, testing, feedback

Quality Control

Exploration for minerals

Minor mods or changes

Pre-production activities

Patenting

Reverse Engineering

Internal management software

R&D Tax Incentive

Software Rules

Same eligibility test

Can be ‘in-house’ or single use

Not primarily for internal administration

Not site specific

Would proceed anyway

Limited public benefit

Commercialisation Australia

Scheme objective:

Fund commercialisation

Turn ideas into success

Provide tailored assistance

Guidance

Case managers

Access to mentors

Commercialisation Australia

Skills and Knowledge $50k

Proof of Concept $250k

Early Stage Commercialisation

up to $2m

Experienced Executives $350k

Commercialisation Australia

Application Process

Pre-application – Stage 1

Application

Review

Final Application – Stage 2

Case Manager Review

Board Decision

Agreement

Commercialisation Australia

Essentials:

Turnover less than $10m

Turnover less than $50m ESC

Matching Funding

Ownership or access to IP

Funding options rejected

Expressions of Interest

Business Plan

Commercialisation Australia

Assessment Criteria

need for funding

commercial potential

market opportunity

management capability

national benefits

Commercialisation Australia

Eligible costs include:

Labour expenditure

Labour oncost and admin (60%)

Contract expenditure

Plant expenditure

Prototype expenditure

Intellectual property

Export Market Development Grant

Marketing funding assistance for:

Export sales

Tourism income

Overseas sales

No sales at all

Export Market Development Grant

Over 4,000 claims annually

Average claim $34,000

Claims lodged July-November

$10,000 threshold

First claim cover 2 years

Patents and Trademarks eligible

Overseas travel

EMDG

Capped at $150 million pa

Scheme runs to 30 June 2015

Minimum claim is $20,000

Minimum grant is $5,000

First payment of $60k payable after

NOD issued, balance by 30 June

Claims prepared by consultants are 25%

higher than claimant prepared

EMDG

Overseas representation

Marketing Consultants

Communications

Tradeshows

Free samples

Promo material & advertising

Patent and trademarks

Overseas buyers

Overseas Travel

EMDG

First time claimants

Pre-registration not required

Export ready test

Can combine 2 years expenses

No export sales required

Product eligibility determination

Small claims should be reviewed

EMDG

Eligible products and services include

Tourism

Non-tourism

IP, Know how

Trademarks

Services

Overseas manufactured goods

EMDG

Ineligible Expenses

Sales related activities

Promotion to New Zealand, Iran and

North Korea

Promotion of pornographic material

Wages (except samples)

Unpaid expenses (not acquitted)

Agents commission

EMDG

Grant Calculation

Minimum expenditure $20,000

Minimum grant $5,000

Maximum claim is $150,000

Threshold of $10,000

Grant lesser of 50% of eligible expenses

or percentage of export sales

Maximum 7 claims

EMDG

Sales Performance

Year 1 0%

Year 2 0%

Year 3 40%

Year 4 20%

Year 5 10%

Year 6 7.5%

Year 7 5.0%

Enterprise Connect

Turnover over $1m less than $20m

Range of industries

Free Diagnostic

Business Assessment Report

Grant of $20,000

Consultant services – your choice

Australian Technology Showcase

Leading edge technology

Online application

Pre-approved funding

$20,000 export orientated

ATS Logo

International Showcase

Clean Tech Investment Program

Manufacturing sector

Funding 50% of new equipment

Funding 50% of installation

Lower carbon footprint

Energy savings

Food and foundries

Clean Tech Innovation Program

Develop innovation

Reduce carbon footprint

Energy savings

No double claim

Tech Vouchers

Vouchers of up to $15,000

Matched in cash or kind

Any NSW based Research Org’n

Valid for 6 months

Support CA, ARC or EC Researchers in

Business applications

Australian Growth Partnerships

CSIRO Investment Funding in :

Climate Adaptation & Energy Transformed

Food Futures

Future Manufacturing

Light Metals

Minerals Down Under

Preventative Health

Water for a Healthy Country

Wealth from Oceans

Grand Challenge

Bill Gates Foundation

Competitive worldwide

Varying focus

Global relevance

$100,000 - $1m

Staged assessment process

Further Information

www.pattens.com

www.business.gov.au

www.ausindustry.gov.au

www.austrade.gov.au

www.grantslink.gov.au

www.ourcommunity.com.au

Summary

Know the rules

Plan, plan and plan

Be creative but honest

Research successful applicants

Provide the information required

Tell them everything except..

Use qualified experienced professional

Contact Details

Pattens Group Pty Ltd

Suite 611, 1c Burdett St, HORNSBY

PO Box 838, HORNSBY NSW 1630

P: 02 9476 1555

E: grants@pattens.com

www.pattens.com or

www.pattensgroup.com.au