Government Grants & R&D Tax Incentives: A Guide for Australian Businesses

Government Funding: Understanding Grants and R&D Tax Incentives

For businesses planning to innovate, invest or grow, understanding available government support can be an important part of financial planning. Government grants and the R&D Tax Incentive offer different forms of assistance, each with specific eligibility requirements and documentation obligations.

Government Grants

Government grants provide funding for projects that align with a program’s objectives. Depending on the opportunity, this may include innovation, business development or other targeted activities. Applications must demonstrate eligibility, address the assessment criteria and explain the proposed project’s costs and expected outcomes. Some programs are competitive, so meeting the eligibility requirements does not guarantee funding.

R&D Tax Incentive

The R&D Tax Incentive helps eligible companies offset some of the costs of qualifying research and development through the tax system. Eligibility depends on the activities undertaken and the associated expenditure. Developing a new product or improving a process does not automatically qualify; companies need evidence that their work meets the program’s R&D requirements.

Preparation Matters

A well-supported application or claim starts with an assessment of the relevant requirements, accurate financial information and clear supporting records. Early preparation helps businesses understand their obligations and manage submission deadlines.

At NewGen Accounting, we help businesses assess eligibility, prepare supporting documentation and manage government grant applications and R&D tax incentive claims.

	Government grants	R&D Tax Incentive
Purpose	Support projects that meet a funding program’s objectives	Encourage eligible research and development
Form of support	Funding under a grant program	A tax offset for eligible R&D expenditure
Main assessment	Business eligibility, project suitability and, where applicable, competitive selection criteria	Eligibility of the company, activities and expenditure
Required evidence	Documents specified by the program, such as budgets and project plans	Records of experimental activities and their associated costs