Australia offers a range of financial assistance programs to support hardware development and research and development (R&D) activities. This guide outlines key programs, grants, and considerations for hardware innovators and researchers in Australia.
Research and Development Tax Incentive (R&DTI)
The R&DTI is a tax-based incentive designed to encourage businesses to undertake R&D activities. For hardware and electronics companies, eligibility hinges on demonstrating that the work involves solving technical or scientific uncertainties. *
- Core R&D Activities: To qualify, activities must be experimental and involve a systematic progression of work to achieve a planned advance. This includes activities like hardware development that aim to create new or improved products, processes, or services.
- Exclusions: Routine development, such as maintaining existing systems or creating internal administrative tools, generally doesn’t qualify.
- Documentation: Detailed records are crucial for demonstrating eligibility. These should outline the challenges faced, the methodologies used, and the outcomes achieved.
Industry Growth Program
This program provides financial & mentoring support to small and medium enterprises (SMEs) in priority sectors, including advanced manufacturing and hardware technologies:
- Eligibility: Businesses must demonstrate a high-growth potential, innovative products or services, and a clear commercialisation strategy.
- Funding: Grants are available for early-stage commercialisation and growth projects with funding amounts between $50,000 and $5 Million. However, recipients will need to demonstrate the abilities to match the funding awarded. Unlike the R&D Tax Incentive, funding is awarded on a competitive basis and is only open once accepted into the advisory services. Given the program’s popularity, securing funding requires a strong business case and a clear articulation of the project’s impact and benefits.
State-based Hardware Grant opportuntiies
Beyond the R&DTI and Industry Growth Program, the State-based grants offer further opportunity for technology developers. Many of these grants are short-term and targeted towards businesses with advanced projects ready for commercialisation. For instance, companies looking to establish a Minimum Viable Product (MVP) may find value in programs like:
- NSW MVP Ventures grant: Offering up to $50,000 in matched funding to support MVP commercialisation with high growth potential.
- Western Australia grant: Funding of up to $40,000 depending on co-contribution
- Queensland’s Ignite Ideas Fund: Similarly providing up to $200,000 in matched funding for projects up to 24 months in duration
Advanced Manufacturing Growth Centre (AMGC)
The AMGC a non-profit industry organisations plays a crucial role in supporting hardware innovation. Project funding occurs via co-investment in industry-led projects that demonstrate commercial potential. Networking also facilitates connections between researchers, manufacturers, and investors. The AMCG provides market intelligence and best practice guides for advanced manufacturing.
Cooperative Research Centres (CRCs)
CRCs are an important avenue for hardware R&D collaboration creating industry-research partnerships to bring together businesses, researchers, and government.
Focus areas: Include advanced manufacturing, smart sensing, robotics, and many more. A full list of CRCs and their details are found here. Once established the CRC and an associated grant can provide significant long-term funding for large-scale, multi-year projects.
Export Market Development Grant (EMDG)
For hardware companies looking to expand globally the EMDG can reimburse expenses related to export promotion activities.
Eligible activities for EMDG include overseas market research, trade show participation, and sample production for export markets. The benefit can be up to 50% reimbursement of eligible expenses, subject to certain limits.
CSIRO Innovation Fund
Managed by Main Sequence Ventures, this fund invests in deep tech startups. The Investment focus is hardware and software companies commercialising publicly funded research. Funding targets seed stage to Series A ventures and beyond. An added benefit to founders is the access to CSIRO’s research capabilities and facilities.
Australia provides a diverse ecosystem of financial support options for hardware R&D and commercialisation. Understanding program requirements, staying informed about evolving grant opportunities, and seeking professional advice can help hardware innovators maximise available funding. By leveraging these resources effectively, Australian hardware developers can accelerate innovation, scale production, and compete on the global stage.
For support with R&D tax incentives and grants, please reach out to our dedicated team.
