1. AusIndustry Entrepreneurs’ Programme
Stephan Wagner
A/g Deputy State Manager, AusIndustry – Business Services
6 Sept 2017
“The Entrepreneurs’ Programme is the Australian Government’s
flagship initiative for business competitiveness and productivity
at the firm level”
John Mills Business Adviser
AusIndustry – Entrepreneurs’ Programme

3. IBIS Industry data

4. IBIS Industry data

5. Structural Timber Manufacturing in Australia – Industry Cost Structure

6. IBIS Industry data Average size of enterprise $1.5m
Sector employment ,300 people
Revenue / employee $244k / ee
Average # employees
Average wage $52.5k
Average business profitability 11.1% EBIT $165k
Average Enterprise Revenue $1.5m

7. Entrepreneurial Challenge
BUSINESS MANAGEMENT AND INNOVATION CONNECTIONS

8. Entitlement Programmes

9. R&D Tax Incentive - overview
Step 1
Two rates of assistance for eligible entities
<$20M per annum 43.5% refundable tax offset
>$20M per annum 38.5% non-refundable tax offset.
Min R&D spend $20K unless R&D conducted through Research Service Provider (RSP)
Currently capped at $100M (otherwise refund rate reverts back to 30% - corporate tax rate)
*Refund subject to other tax liabilities: Unused offsets may be carried forward for use in future income years
Programme participants can claim either:
a 43.5% refundable tax offset where an entity has an aggregate turnover less than $20 million per annum, (unless controlled by tax exempt entities)
a 38.5% non-refundable tax offset for all other eligible entities. Unused offsets can be carried forward for use in future income years.
$100M claimable cap in a given year commenced 1 July 2014.

10. R&D Tax Incentive - process
Step 1
Firms undertaking R&D or considering undertaking R&D self-assess their eligibility
Step 2
Registration form:
register R&D activities with AusIndustry via smart form within 10 months from when your FY ends
Maintain records to substantiate activity and expenditure claims
Who Can Apply
A company incorporated in Australia
Spend more than $20,000 per year (exception where an RSP is engaged)
A company bearing both the financial and technical risk associated with the R&D?
A company with control over the R&D project;
and effectively owning the R&D results?
Registration is with AusIndustry
Companies have up to 10 months after end of financial year in which the R&D occurred to register.
A registration number is provided to the company
Registration number used in tax return (you need to register with AusIndustry before lodging your tax return)
Step 3
Income tax return
with the ATO
Step 4
Receive tax offset

11. Entrepreneurs’ Programme …a suite of services to help business grow“
The Entrepreneurs’ Programme is the Australian Government’s flagship initiative for business competitiveness and productivity at the firm level. ”

13. Accelerating Commercialisation (AC)
Funding up to:
$1 million, on a matched 1:1 basis for commercial enterprises
$250,000, on a matched 1:1 basis for commercialisation offices
A project timeframe up to two years
Commercialisation advice and mentoring by an experienced advisor
Apply via an on line EOI form based on eligibility (Australian entity; Matched funding; prototype & IP) leading to a competitive proposition (assessed by a Committee) across:
Need for Funding
Market Opportunity
Value Proposition
Execution Plan
Management Capability
National Benefits
Researchers accessing funding through research organisation commercialisation offices can access up to $250,000 matched funding.
All other applicants can access funding of up to $1million.
The maximum project length is two years, with no option to extend. Projects with a duration that is less than two years can lodge an variation to extend up until the two year limit.
This is only available to applicants who applied for grant funding in their application process.

14. AC Case ($452K Grant) : StormSeal
Stormseal Industries Pty Ltd (Stormseal) has developed an innovative roof cover system that provides secure temporary protection from wind, rain and hail after severe and catastrophic weather events.
Stormseal provides a more effective solution for storm-damaged homes than tarpaulins.
The target market is insurance companies. Storm damage payouts can be significantly reduced if homes can be effectively secured after severe weather events.
Accelerating Commercialisation grant of $452,000 used to conduct a commercial trials with a key target customer Home Repair (Suncorp Ventures).

15. AC Case ($452K Grant) : StormSeal
Insurance builder HomeRepair has extended their contract for another year.
A complete system of online ordering and a logistics network for distribution has been developed.
An accredited installer training has been implemented.
Plans are underway to launch in the Europe and the USA

17. Innovation Connections
Publically Funded Research Organisations (PFROs) engaged based on capability, capacity and culture
Innovation Connections
Industry driven enquiry
Business applies
Innovation Facilitator
IT Facilitation (2)
Innovation Connections grant options
Tech & Knowledge Facilitation - Engineering (2)
Business applies
Researcher Placement
$50K
Two stage process: (i) Facilitations, then if appropriate (ii) Placement Grants
MAIN MESSAGE:
Innovation Connections is centred on a ‘Facilitation first’ approach
All applications are from industry i.e. only businesses can apply
Facilitation is a triage step that makes sure the business is being offered the best option based on the business needs e.g. IT needs, or off-the-shelf tech, or research with a PFRO
Research Facilitation (16)
Business Researcher Placement
$50K
Innovation Facilitator
Graduate Placement
$30K
Report with recommendations
Grant

18. Innovation Connections Case: Demand Manager
The
company
Financial services firm that provides assistance to the clean energy sector by helping access finance for clean energy upgrades including solar power, LED lighting and other energy efficiency installations
10 years, employs 12 people and is based in Sydney with operations predominantly in NSW, Victoria and South Australia
ICG
Project
Collaboration with Western Sydney University – 2nd project
Further development of the Energy Smart Lighting App and Wireless Light Meter into a Platform (“LIGHTWORK”) for the development of LED lighting upgrades in general - to simplify the grant process for lighting upgrades across Australia
Outcomes
1st IC project successfully developed the “LIGHTWORK” platform
2nd IC project will add additional functionality
The Research Connections journey began for Urbanvirons with an independent assessment of the business’ needs and providing additional thinking
Following the report, the Facilitator was able to make that formal connection between Urbanvirons and the researcher Leon wanted to collaborate with
The next stage of the journey was assisting Leon with his Research Connections Grant application
Leon found the early stages of the research project difficult, due to inexperience dealing with university administration
The Facilitator was able to guide the company and researcher to streamline this process, provide support and battle the university bureaucracy
The research project is currently ongoing and is expected to be completed by early 2016
The results appear very promising and the Facilitator was also able to advise Leon on the options for intellectual property and referrals to other initiatives, such as Accelerating Commercialisation
Leon, like many business owners, was not aware of all the help Research Connections could provide

20. Business Evaluations
The Business Adviser will use their industry experience combined with diagnostic tools to investigate key areas of the business and recommend areas for improvement.
Eligible businesses can access:
Independent and unbiased advice
Strategic & People issues markets, products, customers, costs
Operational issues manufacturing or service delivery efficiency
Financial issues sales, margin, profit, cost, liquidity trends
Receive a plan for improvement with recommendations

21. Business Management & Innovation Connections: Eligibility
Australian Company Number
Sales >$1.5million pa;
trading for >3 years
fit within a growth sector(s)
ENABLING TECHNOLOGIES AND SERVICES

22. Business Growth Grant Small matched-payments (1:1) of up to $20,000
To help implement recommendations from any of the 3 Business Management services:
Business Evaluation
Growth Services
Supplier Chain Improvement
By applying skills of an industry or business specialist consultant, e.g. in staff coaching; lean manufacturing, strategic planning or marketing, etc.

23. 1 Central Park Broadway Sydney Design & Manufacture
Heliostat
1 Central Park Broadway Sydney Design & Manufacture
Australia’s leading industrial designer for architects
Growth Services Case Study:
Assist TILT to grow revenue by +66% to $5m excluding heliostat projects by:
Sales & Marketing
Build core competency in People
Streamline Business Processes
Revenue Diversification – Operable Roof Systems, standard designs
Working Capital Analysis
Business Coaching & Mentoring

24. Tim’s feedback on AusIndustry
“The AUSINDUSTRY grant certainly enabled TILT to complete a number of projects that would not have otherwise been achieved with funding from the business alone.
The grant has enabled us to both accelerate our product development and document our business strategy – both activities are crucial for our continued growth and successful daily operations.
The grant process ensured a strong project plan was developed and the process of reimbursement certainly encouraged rapid execution of  the projects.”

26. Contact Us John Mills john.mills@aigroup.com.au 0400 662 083
AusIndustry – Business Services
John Mills