2014-15 Grants NewsFlash - Grant funding information for Australian businesses and Not-for-Profits
The news is good - a general clean up, consolidation and raft of exciting new initiatives has been announced.
Less grants more money
Funding programs have grown to 723 grant programs with over $50 billion awarded annually. This budget has sought to remove some of the duplication by combining programs to achieve greater efficiency and reduced administrative cost. As a result the number of grant programs will now drop to about 700 programs. However, the overall funding has not been reduced, in fact, it will increase. Two of these new consolidated programs will be the Entrepreneurs' Infrastructure Programme and the Industry Skills Fund.
Entrepreneurs' Infrastructure Programme
From January 2015, the Federal Government will replace a number of programs, including Commercialisation Australia, Enterprise Connect and the Textile, Clothing and Footwear programs. This will provide an investment of $484.2M over five years; the cessation of eight programs will save $845.6M. The new program will provide services previously provided by the programs to be ceased, such as commercialisation of good ideas (currently the purview of Commercialisation Australia) and the facilitation of access to business management advice (an aspect of Enterprise Connect).
Industry Skills Fund
The establishment of the Industry Skills Fund will be delivered at a cost of $476M to deliver 121,500 training places and 74,300 support services. This program will replace ten different programs including the National Workplace Development Fund and Australian Apprenticeships Access Programme which will save the budget $1.0B. The new Industry Skills Fund will require business to make a co-contribution towards the cost of the training based on the business size.
The Medical Research Future Fund
The surprise of the budget, this endowment will be worth $20B, paid for by savings in the health portfolio. From 2015-16, the net earnings from the Fund will serve as a permanent revenue stream, primarily to the National Health and Medical Research Council (NHMRC). The Fund will distribute around $1.0B a year into medical research from 2022-23.
Minor changes to the R&D Tax Incentive
With the government committing themselves to reduce the rate of company tax by 1.5% to in part account for the Paid Parental Leave Scheme, they have made a similar reduction in the R&D Tax Incentive. Both the refundable and non-refundable rates of R&D Tax Incentive will be reduced by 1.5% effective from 1 July 2014.
Further details are available at: http://www.grantready.com.au/