In Australia, there are two main types of small business grant providers: governments and private organisations.
The types of grants awarded by governments as opposed to private organisations typically vary in terms of selection criteria, as well as the amount of money on offer. Here are the different types of grants that usually exist in Australia:
Offered by local, state and federal governments, a government grant for small business can take a variety of different forms. They tend to be quite competitive, with large numbers of small businesses applying for their chance to receive government assistance, but can have great benefits, from temporarily increasing cash flow to reducing the amount of tax paid. Some common types of government grants include direct grants, wage subsidies and tax incentives.
One of the most common types of grants, direct grants are a sum of money that is given directly to a business. They may be granted to fund a specific project or may be designed to be used for a certain purpose. This type of grant can help increase cash flow, boost a growing business or provide an opportunity for greater investment in staff, technology and other resources.
Wage subsidies are another common form of government small business grant, providing financial assistance to businesses that choose to hire employees who may be under-represented in the workforce or belong to demographics that find it more difficult to gain employment. Incentives for hiring older staff, Indigenous jobseekers, people with disabilities and members of other select groups are not only financially attractive to small businesses but also help to promote the creation of new sustainable positions.
Although direct grants can be handy in the short term, government-granted tax incentives can also be helpful to small businesses over a longer period of time. Incentives to engage in certain activities or make investments for the business can allow for increased savings once tax time rolls around.
To learn more about the many different government small business grants available, make your way over to the business.gov.au Grants & Programs finder. Enter your postcode, select your industry and discover which grants your business may be eligible to apply for.
Although similar to the direct grants offered by the government, private grants are funded by not-for-profit organisations and businesses that are owned and operated privately. The private sector can offer grants to businesses operating in certain industries and different demographic groups, and are free to establish their own grant criteria.
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