A guide to innovation assistance
Is your business seeking assistance for innovation from the Australian Government? This guide may help you decide which program is best suited to your business.
This guide is part of a range of documents available for the Clean Technology Innovation Program. For more information about AusIndustry, ARENA, or Commercialisation Australia, visit the websites
listed at the end of this table.
Program
Agency
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
R&D Tax Incentive
Commercialisation Australia
Renewable Energy Venture
Capital (REVC) Fund
AusIndustry
Australian Renewable Energy
Australian Renewable Energy
AusIndustry
Commercialisation Australia
Australian Renewable Energy
Department of Industry,
Agency (ARENA)
Agency (ARENA)
Department of Industry,
Department of Industry,
Agency (ARENA)
Innovation, Science, Research
Department of Resources,
Department of Resources,
Innovation, Science, Research
Innovation, Science, Research
Department of Resources,
and Tertiary Education
Energy and Tourism
Energy and Tourism
and Tertiary Education
and Tertiary Education
Energy and Tourism
Australian Taxation Office
(ATO)
Summary
A competitive, merit based
A merit based grants program
A merit based grants program
A targeted tax offset designed
A competitive, merit based
A venture capital fund that
grants program offering
that supports research and
to support capacity building
to encourage more companies
assistance program offering
provides support to companies
funding to support applied
development, demonstration
and skills development activities
to engage in research and
funding and mentoring to
commercialising renewable
research and development,
and deployment activities for
for the deployment of
development in Australia.
Australian companies,
energy technologies.
proof of concept and early
the development of renewable
renewable energy technologies.
stage commercialisation
energy technologies.
entrepreneurs, researchers and
inventors looking to
activities that will develop
commercialise innovative
technologies and associated
intellectual property.
services which reduce
greenhouse gas emissions
and/or energy usage.
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A guide to innovation assistance
Page 1 of 10
Program
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
 To support the development
Commercialisation Australia
Capital (REVC) Fund
To support the development of
objective
new clean technologies and
of renewable energy
and skills development in the
improve productivity across
hands-on approach to help
active investment management
associated services, including
technologies as they move
renewable energy industry,
the Australian economy
take new products, processes
to encourage the development
low emission and energy
from early stage research and
preparatory activities for
and services to market.
of Australian companies that are
efficient solutions, that reduce
development along the
Projects or any other industry
conduct research and
greenhouse gas emissions.
technology innovation chain
activities to assist the
development activities that
resources as well as
to commercial
development and deployment
may not otherwise have been
networking opportunities to
competitiveness.
of renewable energy
conducted
accelerate the business
technologies.
activities
development
 Proof of concept
 To provide business with
 To offer funding and
Australian companies,
competitively priced
complex support
entrepreneurs, researchers
 Development
 Demonstration
 Early stage deployment
 Early stage commercialisation
 Renewable energy industry
capacity building activities
 Renewable energy industry
development activities
 Preparatory activities for an
 To improve the incentive for
and inventors looking to
smaller firms to engage in
commercialise innovative
research and development.
intellectual property.
Eligible ‘research and
To provide venture capital and
commercialising renewable
energy technologies.
building process for
more predictable, less
Australia’s total energy mix.
 Applied research and
 To encourage industry to
the proportion of
renewable energy in
Eligible
 To boost competitiveness and  To provide an integrated,
Renewable Energy Venture
Program
 To contribute to increasing
To support capacity building
R&D Tax Incentive
 Skills and knowledge:
 The Fund can only invest in
development activities’ as
supports purchase of expert
Eligible Investee Companies
defined in Subdivision 355-B of
advice and services
(refer clause 20.1 of REVC
the Income Tax Assessment Act
 Experienced executive:
1997 (Cth.).
engagement of an
Fund Guidelines)
 Note that the Fund’s
Emerging Renewables
experienced Chief Executive
investments are to be made
Program Project.
Officer or other executive
on a company basis and are
 Proof of concept: activities to
help establish the commercial
not intended to support
specific projects.
viability of a new product,
process or service
 Early stage commercialisation:
activities that will bring a new
product, process or service to
market
Eligible
Energy efficient and/or low
Renewable energy and enabling
Renewable energy and enabling
technologie
emission technologies, that
technologies.
technologies.
s
reduce greenhouse gas
Technology priorities are set out
Technology priorities are set out
emissions.
in Appendix B to the Emerging
in Appendix B to the Emerging
Renewables Program
Renewables Program
Information Guide (available
Information Guide (available
from the ARENA website).
from the ARENA website).
November 2012
Not restricted.
A guide to innovation assistance
Not restricted.
Renewable energy and enabling
technologies.
Page 2 of 10
Program
Budget
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
R&D Tax Incentive
Renewable Energy Venture
Capital (REVC) Fund
$200 million over 5 years
$126 million across both
$126 million across both
(2012-13 to 2016-17)
Projects and Measures
Projects and Measures
(2011-12 to 2019-20, subject to
(2011-12 to 2019-20, subject to
investor totalling $200 million
availability of ARENA funds)
availability of ARENA funds)
over 13 years (2012 – 2024)
Merit based grants program
Merit based grants program
Program
Competitive, merit based grants
type
program
Not applicable
Commercialisation Australia
Entitlement program
$76.7 million (2012-13)
$100 million ARENA investment
$82 million per annum ongoing
matched 1:1 by a private
Competitive, merit based grants
Venture capital fund
program
(investments determined by
Fund Manager based on
commercial judgment and
parameters of the program)
Financial
Grants from $50,000 to $5
No maximum funding
No maximum funding
support
million.
restriction, other than the limit
restriction, other than the limit
offset (equivalent to a 150
of program funds. However,
of program funds. However,
per cent deduction) to
funding for an individual Project
funding for an individual
eligible entities with an
up to $350,000 over two
is expected to be between $2
Measure is expected to be up
aggregated turnover of less
years
million and $30 million.
to $3 million.
than $20 million per annum
available to
successful
applicants
 A 45 per cent refundable tax
 A non-refundable 40 per cent
tax offset (equivalent to 133
Payments
 Skills and Knowledge: grants
up to $50,000
 Experienced Executive: grants
Maximum of $40 million –
which is 20 per cent of the
Fund's total capital. This can be
changed if approved by ARENA.
 Proof of Concept: grants from
$50,000 to $250,000
 Early Stage
per cent deduction) to all
Commercialisation: grants
other eligible entities.
from $50,000 to $2 million
Quarterly grant payments
Payments made in instalments
Payments made in instalments
Benefit received annually –
Quarterly grant payments
Investment as agreed by
following receipt of progress
set out in schedules to the
set out in schedules to the
refundable tax offset for eligible
following receipt of progress
investors, Fund Manager and
reports
funding agreement
funding agreement
entities with a turnover of less
reports
investee company.
than $20 million, or a non-
Investee companies may receive
refundable tax offset for all
an initial investment with
other eligible entities.
subsequent rounds if they are
A quarterly credits system for
successful and present high
companies with an annual
value growth opportunities.
turnover of less than $20 million
will commence January 2014.
None
Non-
None
None
None
monetary
Access to:
Fund manager provides active
 Experienced industry Case
management to help develop
Manager
support
investee companies
 Volunteer Business Network
available to
of industry experts
successful
applicants
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A guide to innovation assistance
Page 3 of 10
Program
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
R&D Tax Incentive
Applicant
At least 50 per cent of total
No specified amount. However,
No specified amount. However,
contribution
eligible project costs.
applicants seeking 100 per cent
applicants seeking 100 per cent
20 per cent of total eligible
of project funds are likely to be
of project funds are likely to be
project costs
found to have low merit and
found to have low merit and
not be funded.
not funded.
to project
costs
Not applicable.
Commercialisation Australia
 Skills and Knowledge: At least
Renewable Energy Venture
Capital (REVC) Fund
Not applicable.
 Experienced Executive: At
least 50 per cent of total
eligible project costs
 Proof of Concept: At least 50
per cent of total eligible
project costs
 Early Stage
Commercialisation: At least
50 per cent of total eligible
project costs
Turnover
None
None
None
45 per cent refundable tax
limits
 Less than $50 million per year
offset to eligible entities with an
for Early Stage
aggregated turnover of less
Commercialisation grants
than $20 million per annum and
a non-refundable 40 per cent
 Less than $10 million per year
for all other components
tax offset to all other eligible
 Less than $20 million at time
of first investment.
 Not associate of company
with revenue greater than
$100 million at time of first
investment.
entities.
Maximum
2 years 6 months.
No maximum, however project
No maximum, however project
Not applicable.
 Skills and Knowledge: 1 year
Projects to be completed by
project
Projects to be completed by
length will be set when the
length will be set when the
 Experienced Executive: 2
2024.
length
June 2017.
successful applicant enters into
successful applicant enters into
a funding agreement with the
a funding agreement with the
 Proof of Concept: 1 year
Commonwealth.
Commonwealth.
 Early Stage
years
Commercialisation: 2 years
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A guide to innovation assistance
Page 4 of 10
Program
Eligibility
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
R&D Tax Incentive
Renewable Energy Venture
Commercialisation Australia
Capital (REVC) Fund
Applicants must be:
Applicants must satisfy the
Applicants must satisfy the
Only ‘R&D entities’ can register
Applicants must be:
For a company to be an eligible
 A non tax-exempt company
following criteria:
following criteria:
research and development
 A non tax-exempt company
investee company, it must be a
 At the time of entering into a
 At the time of entering into a
(R&D) activities and claim R&D
incorporated under the
company which:
incorporated under the
Corporations Act 2001 (Cth);
Funding Agreement, be an
Funding Agreement, hold an
tax offsets. An R&D entity is a
Corporations Act 2001 (Cth)
a) At the time the Licensed
or
Australian entity incorporated
Australian Business Number
corporation that is:
that meets the turnover
Fund first invests in it, is
under the Corporations Act
(ABN).
 Incorporated under an
requirements;
incorporated under the
 A wholly or majority owned
Commonwealth or State
2001 (Cth).
Government body that either:  Be able to demonstrate to
-
-
-
 Be able to demonstrate to
the satisfaction of ARENA
Australian law; or
 Incorporated under foreign
 A researcher applying
Corporations Act 2001 (Cth)and
through the
has an Australian Business
Derives its income
the satisfaction of ARENA
that the activity described in
law but an Australian resident
commercialisation office of an
Number (ABN);
primarily from
that the project described in
the Measure application
for income purposes; or
Australian University; or
b) Is commercialising
commercial sources;
the proposal meets the
meets the definition of a
 Incorporated under foreign
 Researchers or individuals
Does not receive
definition of a Project (as
Measure (as described in the
law and:
significant recurrent
described in the Information
Information Guide).
-
government funding; or
Guide).
Returns any part of a
 Be able to demonstrate to
Renewable Energy Technologies
applying through a
or will, under the investment
A resident of a country
commercialisation office of a
arrangement with the Licensed
with which Australia has a
University, Publicly Funded
Fund, be required to
the satisfaction of ARENA
double tax agreement,
Research Agency or Eligible
commercialise Renewable
Partner Entity; or
Energy Technologies;
 Be able to demonstrate to
trading surplus to a
the satisfaction of ARENA
ownership of, access to or
including a definition of
government in the form
that the Project will take
the beneficial use of, any
‘permanent
of an annual dividend or
place primarily in Australia.
intellectual property
establishment’; and
who agrees to form a non
seed, start-up or early
Carrying on business in
tax-exempt company
expansion stage of its
Australia through a
incorporated under the
development, at the time the
permanent establishment
Corporations Act 2001(Cth) if
Licensed Fund first invests in it;
the application is successful.
d) Is providing all of the goods
similar payment.
 Be able to demonstrate to
necessary to carry out the
-
All applicants must also
the satisfaction of ARENA
demonstrate that they:
ownership of, access to, or
 Can match the grant funding
the beneficial use of, any
organisation that has not
as defined in the double
on a 50:50 basis throughout
intellectual property
complied with the Equal
tax agreement.
the life of the project;
necessary to carry out the
Project.
 Have access to, and/or the
beneficial use of, any
 Not be named as an
Measure.
 Not be named as an
 An individual or researcher
c) Has business activity at the
All applicants must also
and services it produces
Opportunity for Women in
demonstrate that they:
through commercialising
the Workplace Act 1999 (Cth).
 Can match the grant funding
Renewable Energy Technologies
 Be able to demonstrate to
at the required ratio over the
to persons who are not
life of the project;
Associates;
intellectual property
organisation that has not
the satisfaction of ARENA, the
necessary to carry out and/or
complied with the Equal
applicant’s need for funding
commercialise the proposed
Opportunity for Women in
for the Measure taking into
beneficial use of, any
employees (by number) and
project; and
the Workplace Act 1999 (Cth).
account the extent of funding
intellectual property
assets (by value) inside Australia
for the Measure from other
necessary to carry out and/or
at the time the Licensed Fund
sources.
commercialise the proposed
first invests in it, or will use the
project; and
whole of the proceeds from
 Must comply with their
 Be able to demonstrate to
 Have access to, and/or the
e) Has a majority of its
obligations under the Equal
the satisfaction of the ARENA,
Opportunity for Women in
the applicant’s need for
the Workplace Act 1999
funding for the Project, taking
requirements in section 4.4 of
(Cth).
into account the extent of
the Emerging Renewables
obligations under the Equal
Australia;
funding for the Project from
Information Guide
Opportunity for Women in
f)
November 2012
other sources.
 Comply with the
requirements in section 3.4 of
 Comply with the
A guide to innovation assistance
 Must comply with its
that initial investment within
At the time the Licensed
the Workplace Act 1999 (Cth). Fund first invests in it,
has5an
Page
of 10
average annual revenue over
the previous two years of
Program
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
R&D Tax Incentive
Commercialisation Australia
Renewable Energy Venture
Capital (REVC) Fund
Collaborativ
Eligible – national and
Eligible – national and
Eligible – national and
Eligible.
Eligible – national and
Fund manager invests in one
e projects
international.
international.
international.
Each eligible entity in the
international.
company per investment.
Lead applicant must be an
Lead applicant must be an
Lead applicant must be an
collaboration that wants to
Lead applicant must be an
eligible entity at the time of
eligible entity at the time of
eligible entity at the time of
receive the benefit must register
eligible entity at the time of
entering into a funding
entering into a funding
entering into a funding
their activities.
entering into a funding
agreement.
agreement.
agreement.
Companies can collaborate with
agreement.
Research Service Providers.
November 2012
A guide to innovation assistance
Page 6 of 10
Program
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
 Extent of the reduction in
Merit
criteria
 Potential of the renewable
 Contribution of the Measure
R&D Tax Incentive
Not applicable
Commercialisation Australia
 Need for funding
greenhouse gas emissions or
energy technology
to the development of the
Only applications that
energy consumption
encompassed in the Project
renewable energy industry in
demonstrate a need for funding
associated with the project
to deliver economic benefits
Australia.
are assessed against the
 Commercial potential of the
project
 Technical strength of the
project (including the
technical capability and
from lowering the cost and
 Capability of the applicant
and any proposed supporting
 Market opportunity
renewable energy in Australia
consortium to implement the
 Value proposition
over the long term.
Measure as set out in the
 Execution plan
proposal.
 Management capability
resources available to the
Project to deliver clearly
applicant)
defined technical outcomes
Program for the Measure
to progress the renewable
compared with the total cost
energy technology along the
of the Measure.
 Management capability of
the applicant
technology innovation chain
 Funding sought from the
Capital (REVC) Fund
Not applicable
remaining criteria:
increasing the supply of the
 Technical strength of the
Renewable Energy Venture
 National benefits
 Overall risk associated with
and the national and
the Measure as set out in the
international significance of
proposal, including without
the technical innovation
limitation: compliance,
involved.
technical and financial risks.
 Contribution of the Project to
the renewable energy
technology priorities, as set
out in Appendix B to the
Emerging Renewables
Program Information Guide
(available from the ARENA
website).
 Capability of the applicant
and any proposed supporting
consortium to implement the
Project set out in the
proposal.
 Funding sought from the
Program for the Project
compared with the total cost
of the Project.
 Overall risk associated with
November 2012
the Project as set out in the
proposal, including without
limitation: compliance,
A guide to innovation assistance
Page 7 of 10
Program
Clean Technology
Emerging Renewables
Emerging Renewables
Innovation Program
Program – Projects
Program – Measures
Dealing with  Written consent must be
Must obtain ARENA’s written
Must obtain ARENA’s written
R&D Tax Incentive
Not applicable
Commercialisation Australia
 For grants of $500,000 or
intellectual
obtained before a successful
consent before any change of
consent before any change of
less, written consent must be
property/
applicant deals with project
control events.
control events.
obtained before a successful
change of
control
intellectual property during
applicant deals with project
the project period.
intellectual property during
 For overseas change of
Renewable Energy Venture
Capital (REVC) Fund
Refer fund manager
the project period.
control events that occur
 For all other grants, written
during the project period
consent must be obtained
there is a requirement to
before the applicant deals
repay grant funds paid to
with project intellectual
date.
property until 5 years after
the project completion.
Innovation Australia
Merit
assessment
-
ARENA Board (with applications
ARENA Board (with applications
Self assessment.
Clean Technology
over $50 million going to the
over $50 million going to the
Risk assessment and compliance
Innovation Committee
Minister for Resources and
Minister for Resources and
reviews undertaken by
(Applications over $3
Energy)
Energy)
AusIndustry and the ATO.
Innovation Australia
-
Applications for investment
Commercialisation
considered by fund manager
Australia Board
and determined by fund
manager’s investment
million will also be
committee
considered by the
Innovation Australia
Board)
Application
Two stage – applicant
Two stage – an initial Expression
One stage – only Measures of
R&D activities must be
Two stage – applicant
process
completes a Registration of
of Interest, followed by an
high merit will be offered
registered with AusIndustry
completes a Stage 1 Application
Interest form. AusIndustry
invitation for selected applicants
program funding.
within 10 months of the end of
Form for an initial assessment
contacts the customer to
to submit an Application for
Continuous application process.
the financial year in which they
of eligibility. Commercialisation
discuss the project and
funding consideration.
were carried out. Companies
Australia contacts the applicant
eligibility. If suitable,
Continuous application process.
then claim the benefit through
to discuss the application.
the ATO.
Competitive applicants will be
AusIndustry will provide the
customer with the full
then asked to complete a Stage
Application Form.
2 Application Form.
Continuous application process.
Continuous application process.
Application to fund manager
Further
www.ausindustry.gov.au
www.arena.gov.au
www.arena.gov.au
www.ato.gov.au/randdtaxincenti
www.commercialisationaustralia.
www.arena.gov.au
information
13 28 46
02 6243 7054
02 6243 7054
ve
gov.au
www.sxvp.com
www.ausindustry.gov.au
13 22 56
13 28 46
November 2012
A guide to innovation assistance
Page 8 of 10
Finding the best program for your needs:
Question
Response
Does your project involve some energy efficiency or greenhouse
 If No, the Clean Technology Innovation Program is not suitable.
gas emission reduction?
Does your project involve the development of renewable energy
 If No, the Emerging Renewables Program is not suitable.
technologies?
Does your project involve research and development?
 If Yes, consider the R&D Tax Incentive.
 If Yes, for applied research and development (as compared to blue sky and/or basic research), consider the Clean
Technology Innovation Program.
 If Yes, some development activities may be supported under Emerging Renewables Program – Projects.
 If Yes, for development activities focused on achieving a commercial transaction of bringing a product process or service to
market, some elements may be supported under Commercialisation Australia.
Does your project involve technical proof of concept and/or early
stage commercialisation activities?
Does your project involve commercial proof of concept and/or
early stage commercialisation activities?
Do you have any funds available to put towards the cost of your
project?
 If Yes, consider:
-
The Clean Technology Innovation Program.
-
Emerging Renewables Program.
 If Yes, consider:
-
Commercialisation Australia’s Proof of Concept and Early Stage Commercialisation components.
 If Yes, The Clean Technology Innovation Program or Commercialisation Australia Program may be suitable.
-
Under the Clean Technology Innovation Program you need to be able to cover 50% of the total cost of the project.
-
Under Commercialisation Australia’s Experienced Executive, Proof of Concept and Early Stage Commercialisation
components you will need to cover 50% of the cost of your project; whilst under the Skills and Knowledge component
you will need to cover 20% of the cost.
 If Yes, you may be eligible to claim a tax offset of 40% or more on the entire cost of your R&D project under the R&D Tax
Incentive
 If No, the Emerging Renewables Program can fund up to 100% of the project costs.
Do you require expert guidance and assistance to commercialise
your new technology?
Do you need expert advice on how to make the business
connections necessary to develop your intellectual property?
November 2012
 If Yes, Commercialisation Australia provides experienced Case Managers to guide successful applicants through the
commercialisation process. Commercialisation Australia Case Managers can:
-
help identify the skills and knowledge you need;
-
help you access specialist advice and service;
-
connect you with Volunteer Business Mentors;
-
assist you to develop professional networks;
-
provide strategic and operational advice; and
-
monitor your progress
 If Yes, Commercialisation Australia has an established Volunteer Business Mentor network that can provide the advice you
need. The network can only be accessed by successful applicants and via a recommendation from a Case Manager.
A guide to innovation assistance
Page 9 of 10
Question
Response
Are you a researcher, Australian University or Publicly Funded
 If Yes, you can apply for Commercialisation Australia assistance through your Commercialisation Office.
Research Agency?
 If Yes, you may be able to participate in the Clean Technology Innovation Program, providing that you:
Are you an individual?
-
form part of a collaborative project with an eligible lead applicant; or
-
form a non tax-exempt (spin-off) company incorporated under the Corporations Act 2001 (Cth).
 If Yes, under Commercialisation Australia an individual can apply, but must agree to form a non tax-exempt company
incorporated under the Corporations Act 2001 (Cth) if the application is successful.
 If Yes, under the Emerging Renewables Program an individual can apply - but for Projects they must agree to form a non
tax-exempt company incorporated under the Corporations Act 2001 (Cth) if the application is successful; and for Measures
they must agree to hold an Australian Business Number (ABN) if the application is successful.
Can you receive a grant under one program and then apply for
another program grant to continue the project?
 Yes. However, neither Commercialisation Australia, the Clean Technology Innovation Program, nor the Emerging Renewable
Program will fund the same activities (double dipping). Applicants can, however, complete a project under one program
and then apply for assistance under the same or different program to further progress the project.
 Applicants can apply for grants for projects that also receive the R&D Tax Incentive, however clawback provisions apply.
November 2012
A guide to innovation assistance
Page 10 of 10