About Innovation & R&D Grants
Australia has one of the world's most generous R&D support frameworks. The R&D Tax Incentive alone distributes over $4 billion per year — providing a 43.5% refundable tax offset for eligible experimental activities. Combined with competitive grants from Entrepreneurs' Programme and state innovation bodies, businesses investing in genuine innovation have multiple funding paths.
Featured Programs
Highest value firstThe Future Made in Australia Innovation Fund provides up to $1.5 billion in grant funding focusing on renewable energy and low emission technologies critical to Australia's renewable energy transition. Grant funding is available across three priorities: Green Metals ($750 million), Renewable Energy Technology Manufacturing ($200 million initial tranche), and Low Carbon Liquid Fuels ($250 million).
A concession program for green hydrogen producers to significantly reduce their electricity costs in NSW. Up to $1.5 billion is available to support the development of the green hydrogen industry and drive down production costs.
A $1 billion Commonwealth government program that supports the commercialisation of Australian solar photovoltaic (PV) innovations and enhances solar PV supply chains in Australia. The program funds innovative solar PV manufacturing facilities across the solar supply chain through multiple funding rounds.
The Australian Government provides funding to support critical services in remote First Nations communities in the Northern Territory, including remote policing, child and family services, Aboriginal interpreter services, alcohol harm reduction services, education programs, and hearing and oral health services. The program commits $842.6 million over 6 years commencing 1 July 2025 to continue delivery of essential remote services, expand supports for Aboriginal Community Controlled Organisations, enable communities to design and deliver services, and support access to economic development and employment opportunities.
The second phase of the Future Drought Fund provides $519.1 million over 8 years to support drought resilience and adaptation activities. This includes extensions to the Drought Resilience Adoption and Innovation Hubs and Climate Services for Agriculture program, as well as evaluation activities and support for First Nations communities.
A program that registers venture capital limited partnerships to invest in Australian businesses at various stages of development. Registered VCLPs have capital and are authorized to make venture capital investments in eligible companies, with investment focuses ranging from early-stage high-tech companies to mid-market buyouts.
Eligibility Notes
R&D Tax Incentive eligibility requires: an Australian company (not sole trader or trust), conducting experimental activities with uncertain outcomes, and expenses incurred in Australia (or approved overseas). Registration with AusIndustry must occur within 10 months of the end of the income year — do not miss this deadline.
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14 additionalCommon Questions
Does software development qualify as R&D?
Yes, if it involves genuine technical uncertainty — developing a new algorithm, exploring an uncertain technical approach, or solving a problem where the solution is not known.
What if my R&D fails?
Failure is not a problem — the R&D Tax Incentive is specifically designed for activities with uncertain outcomes. Successful and unsuccessful experiments both qualify as long as the experimental approach was genuine.
Is there a cap on the R&D Tax Incentive claim?
No cap for the 43.5% rate (companies under $20M turnover). Special clawback rules apply if your R&D expenditure is over $150M in a year.
Grant information is sourced from official government websites and updated regularly. Always verify details with the official source before applying.