Three crucial Government grants for the self-employed this tax season

The tax season can provide many self-employed Australians with different ways to maximise their returns and set up a growth mindset for the 2024-25 financial year. Pleasingly, the Australian Government offers several grants designed to support the self-employed in all states and territories, providing much-needed relief while fostering business growth.

1. New Enterprise Incentive Scheme

This scheme is a fantastic initiative for those starting a new business or wanting to refocus an existing micro-business. The grant can be particularly beneficial for self-employed individuals who need support during the initial stages of their business journey. To qualify, you must be at least 18 years old, not receiving other income support payments, and proposing to start a new business or refocus an existing micro-business that will create additional work opportunities. The program offers accredited small business training, personalised mentoring, and income support for up to 39 weeks. By participating in the New Enterprise Incentive Scheme (NEIS) program, self-employed individuals can gain the necessary skills, knowledge, and financial backing to establish a sustainable business.

You can find out more by visiting https://www.dewr.gov.au/new-business-assistance-neis

2. Research and Development Tax Incentive

This is designed to encourage SMEs, including self-employed individuals, to engage in research and development activities that benefit the broader economy. Entities incorporated under Australian law that are conducting eligible R&D activities can apply. This includes self-employed individuals operating through an eligible company structure. Companies with an aggregated turnover of less than $20 million can receive a refundable tax offset of 43.5% of their eligible R&D expenditure. Eligible R&D activities involve innovation or significant product, process, or service improvements. This grant can significantly reduce the financial risk associated with innovative projects, allowing self-employed individuals to invest more in developing their business offerings.

For more information, visit https://business.gov.au/grants-and-programs/research-and-development-tax-incentive

3. Small Business Skills and Training Boost

This initiative is designed to encourage small businesses to invest in upskilling their workforce, including the self-employed. Eligible businesses can deduct an additional 20% of expenditures incurred on external training courses provided to their employees. The eligible training must be conducted in Australia or online by entities registered in Australia. This boost applies to expenditures incurred between 29 March 2022 and 30 June 2024. By utilising this grant, self-employed individuals can enhance their skills and knowledge, thereby improving their business operations and competitiveness in the market.

To see eligibility requirements visit https://business.gov.au/grants-and-programs/small-business-skills-and-training-boost

As the end of the financial year approaches, it is important to consider these grants and incentives to optimise your financial strategy and strengthen your business foundation. By tapping into these government grants, self-employed individuals can better navigate the financial challenges of running a business and seize new opportunities for growth and success.

As always, seek professional help to determine whether a loan product is right for you. For personal advice, consult with an accountant or financial advisor.