Where to get 50%?

Have you heard about the new ‘Industry Growth Program’, which offers grants targeted at small companies that have undertaken R&D activities and are now looking for funding to complete the commercial prototype?

The Australian Government funding for the ‘Early-Stage Commercialisation’ component is a maximum of $250,000 on a 50-50 basis.

A great option is for these companies to research the process to qualify as an ‘Early-Stage Innovation Company’.

This status is available for companies under three years of age that have expenditure of less than $1million and income of less than $200,000.

Companies under six years of age who had expenditure of less than $1million aggregate over the last three years, and income of less than $200,000 over the last 12 months can also qualify.

If the company has satisfied this initial test, they must pass one of two remaining tests.

The ‘Principles Test’ requirements addresses the following questions:

Is the company genuinely focused on developing for commercialisation one or more new, or significantly improved products, processes, services, marketing or organisational methods?

Does the company have a high growth potential?

Is the company able to scale the business?

Does the company service a broader than local market?

Does the company has potential to have a competitive advantage?

This methodology of capital raising has a significant advantage to help the company to attract investors.

Sophisticated investors are able to claim 20% of their investment in the company, up to a maximum of $200,000 as a tax credit of their own taxation assessment. Retail investors obtain 20% of their investment up to $10,000 maximum tax credit.

These investors are eligible to obtain ‘Capital Gains Tax Exemption’ on the shares allocated as part of the accreditation process if they own those shares for longer than 12 months and less than 10 years.

This is a way to fund the company’s share of the 50% funding.

If you require assistance with this process, contact Towers Business Development on 1800 232 088 or email .