Australian Government Grants for Business Technology Upgrades
Australian Government Grants for Business Technology Upgrades
Investing in technology can be a significant expense for Australian small businesses. The good news is that federal and state governments offer a range of grants, incentives, and tax benefits to help businesses adopt new technology, improve cybersecurity, and build digital capability. Many business owners are not aware of these programs or assume they are too complex to access.
This guide covers the key programs available to Australian SMBs as of mid-2021, with practical details on eligibility, amounts, and how to apply.
Federal Government Programs
Instant Asset Write-Off (Temporary Full Expensing)
The most broadly applicable incentive for technology investment. As part of the government’s economic response, businesses can immediately deduct the full cost of eligible assets purchased and first used or installed by 30 June 2022.
What it covers:
- Computers, laptops, and tablets
- Servers and networking equipment
- Software (if it is a depreciating asset)
- Printers and scanners
- Phone systems
- Any other business technology assets
Eligibility: Businesses with aggregated annual turnover of under $5 billion. This effectively covers all Australian SMBs.
How it works: Instead of depreciating the asset over its useful life, you deduct the full cost in the year of purchase. For a business buying $20,000 of IT equipment, this means a tax deduction of $20,000 in the current year, reducing your tax liability.
How to access: No application required. Your accountant claims the deduction in your tax return. Ensure your accounting records clearly identify the assets and their purchase dates.
Technology Investment Boost (Small Business)
Announced in the 2022-23 Budget but applying to expenditure from 29 March 2022, this measure allows small businesses to deduct an additional 20% of the cost of expenses and assets that support digital adoption. While not yet in effect at the time of writing, it is worth monitoring as details are finalised.
Boosting Female Founders Initiative
While not technology-specific, this grant program supports women-founded startups and small businesses, which often includes technology investments.
Funding: Grants of $25,000 to $400,000. Eligibility: Female-founded startups and small businesses. Application: Via business.gov.au when rounds are open.
Entrepreneurs’ Programme
The federal government’s Entrepreneurs’ Programme offers advisory and funding support for businesses looking to grow and innovate.
Components relevant to technology:
- Business Management: Advisory services to help identify technology needs and develop strategies.
- Innovation Connections: Matched funding for collaborative research projects.
- Accelerating Commercialisation: Grants of up to $1 million for bringing innovative products to market.
Eligibility: Varies by component. Generally requires annual turnover of at least $1.5 million (for Business Management) or a viable innovation project (for Innovation Connections and Accelerating Commercialisation).
How to apply: Register at business.gov.au/EP.
State and Territory Programs
New South Wales
Digital Solutions — Australian Small Business Advisory Service (ASBAS)
Free or low-cost digital advisory services for small businesses, covering:
- Websites and e-commerce
- Social media and digital marketing
- Using data and technology
- Cybersecurity
Eligibility: Businesses with fewer than 20 employees (or fewer than 200 for some categories). Cost: Free or heavily subsidised. How to access: Find a provider at business.gov.au/asbas.
Victoria
Business Recovery and Resilience Mentoring Program
Free mentoring for Victorian small businesses, which can include guidance on technology adoption and digital transformation.
Small Business Digital Adaptation Program
This program provided grants of up to $1,200 for small businesses to access digital tools and training. While earlier rounds have closed, the Victorian Government regularly launches new programs supporting digital adoption. Check business.vic.gov.au for current offerings.
Queensland
Small Business Digital Grants
Previous rounds offered grants of up to $10,000 (matched dollar for dollar) for Queensland small businesses to adopt digital technologies.
What it covered:
- Digital hardware and software
- Digital training
- E-commerce capabilities
- Cybersecurity improvements
Rounds open periodically. Check business.qld.gov.au for current availability.
Mentoring for Growth
Free mentoring service for Queensland businesses, which can include technology strategy advice.
South Australia
Digital Solutions — ASBAS
Similar to the federal ASBAS program, delivered through local providers. Offers free or low-cost digital advisory services.
Western Australia
Digital Solutions — ASBAS
Digital advisory services available through local providers in WA.
Innovation Vouchers
The WA Government has offered Innovation Vouchers in the past, providing funding for businesses to work with research institutions on technology projects. Check the Department of Jobs, Tourism, Science and Innovation website for current offerings.
Tasmania
Digital Ready for Business
Free workshops and one-on-one mentoring to help Tasmanian small businesses improve their digital skills and adopt new technology.
Northern Territory
Digital Territory
The NT Government has run digital capability programs for Territory businesses. Check the NT Government business website for current programs.
Australian Capital Territory
Canberra Innovation Network (CBRIN)
CBRIN offers programs and events supporting innovation and technology adoption for ACT businesses, including mentoring, workshops, and connections to the local tech ecosystem.
Industry-Specific Programs
Export Market Development Grants (EMDG)
If your business exports or is looking to export, EMDG can reimburse up to 50% of eligible export promotion expenses, which can include digital marketing and e-commerce development.
Funding: Up to $150,000 over the life of the grant. Eligibility: Australian businesses with turnover of under $50 million.
Research and Development (R&D) Tax Incentive
If your technology investment involves genuine research and development activities, the R&D Tax Incentive provides:
- A 43.5% refundable tax offset for entities with aggregated turnover of under $20 million.
- A 38.5% non-refundable tax offset for all other eligible entities.
Important: Purchasing and implementing existing technology does not qualify. The activities must involve genuine experimentation to develop new knowledge or solutions. Consult a specialist R&D tax advisor for guidance.
How to Find and Apply for Grants
1. Check Regularly
Government grant programs open and close on different schedules. Check these sources regularly:
- business.gov.au: The federal government’s primary portal for business grants and assistance.
- grants.gov.au: GrantConnect, the central listing of all federal government grant opportunities.
- State government business websites: Each state and territory has a business portal listing current programs.
2. Assess Eligibility Carefully
Before investing time in an application, carefully read the eligibility criteria. Common requirements include:
- ABN and GST registration
- Turnover thresholds
- Business age and trading history
- Specific industry or location requirements
- Matched funding (you may need to contribute dollar-for-dollar)
3. Prepare Strong Applications
Grant applications are competitive. Improve your chances by:
- Clearly articulating how the technology investment will benefit your business.
- Providing specific, realistic budgets.
- Demonstrating that you have researched the technology and have a plan for implementation.
- Showing measurable outcomes (increased revenue, reduced costs, new customers).
- Getting professional help if the grant amount justifies it — grant writing consultants can improve your success rate.
4. Keep Good Records
Grant programs typically require:
- Tax invoices for all expenditure.
- Evidence that expenditure was incurred within the eligible period.
- Progress reports or acquittal reports.
- Proof that the funds were used for their intended purpose.
Maintain meticulous records from the start.
Maximising Your Benefit
Combine Programs
In many cases, you can combine multiple programs. For example:
- Use the Instant Asset Write-Off for the tax benefit on hardware purchases.
- Apply for a state government digital grant to offset part of the cost.
- Access free ASBAS advisory services to help plan your technology investments.
Check each program’s terms to ensure combining is permitted.
Plan Timing
Some programs have specific eligible periods. Align your purchases with grant timelines to maximise benefits. Do not rush a purchase to fit a deadline if the business case is not sound — the grant should support a good decision, not drive a poor one.
Seek Professional Advice
Your accountant or business advisor should be aware of relevant grants and incentives. A brief consultation before making a major technology purchase can save significant money.
Getting Started
The landscape of government grants and incentives can feel overwhelming. Start with these steps:
- Claim the Instant Asset Write-Off: If you are purchasing technology this financial year, ensure your accountant is aware and claiming the full immediate deduction.
- Visit business.gov.au: Search for grants relevant to your business, location, and industry.
- Contact your state business advisory service: Free advisory services can help identify relevant programs and guide your applications.
- Sign up for alerts: Most government grant portals allow you to subscribe to notifications when new programs open.
Government grants will not cover all of your technology costs, but they can meaningfully reduce the financial burden of upgrading your business technology. The key is being aware of what is available and being prepared to apply when opportunities arise.