Government Grants And How They Are Taxed

Whether you are a start-up looking to get your feet off the ground or an established business needing the capital to take that next big (or not so big) step, the government can provide great financial assistance if you know where to look.

‍

Government Grants

Australian state and federal governments often have various grants available for businesses of all shapes and sizes and although finding the right one can be tricky, they can be a gamechanger if you’re successful. As you might imagine, accessing grants can be a competitive exercise and they often come with a lengthy application process, but all things considered, are almost always worthwhile, providing invaluable assistance to your business no matter where it is in its life cycle.

So what is out there right now?

The answer is it really does depend – where your business is based, what you are trying to achieve, if your business or start-up has been affected by Covid-19 or the bushfires, or if you are simply trading in an area the government is looking to support. Applier beware though – they come and go swiftly … it really can be a blink and you’ll miss it situation if your finger isn’t on the proverbial pulse.

At time of writing, there’s a bunch of government grants available that may fit your circumstances including a some that are set up to support businesses affected by the issues 2020 threw at us – grants that include; bushfire business grants for those who suffered a loss of income, as well as more specific COVID-19 business grants. That’s just scratching the surface though, so it’s worth speaking to one of the Attune team to understand the full gamut of what’s out there.

Things to consider:

Each business grant will come with its own set of eligibility criteria that ultimately provide you with the specific rules for the application process – there’s a bit of an art to it, so it’s worth speaking to someone who has experience in building successful applications. That’s where we come in … here at Attune not only can we assist you in your search for the perfect grant, we team you up with a specialised application expert to make sure you have the best chance of success.

Are there any tax implications?

The good news is there’s nothing outrageous to consider when it comes to tax on grant moneys … Government grants are simply treated as normal assessable income to the business and will be subject to the entity’s normal tax rate. In addition, any grant aimed at giving income support to your business will typically not have any GST implications.

With everything considered, now might just be the perfect time for you to access funds that will really change the course of your business.

Contact us today so we can help you put a strategy in place that’ll give you the best opportunity for success.

‍