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As of 2023, Australia generates between 30 and 35 per cent of its power from renewable sources such as wind, solar, and hydro power, according to ABC News.
Australia is committed to supporting the renewable energy industry, with both State and Federal Government support, recognising the industry as key to Australia’s net zero transition. This commitment is evident in the current range of grant programs and government funding supports, spanning across equity investment and loans, that businesses with this focus can access.
At a high level, our governments want to support the development of onshore manufacturing capability across the full renewable and clean energy value chain. This includes critical mineral mining and value adding, batteries, energy storage solutions, solar panels, turbines and electrolysers, through to renewable energy generation and clean fuel production.
Government funding may support technology commercialisation, product design activities, manufacturing facility establishment or the installation of onsite clean energy generation to decarbonise industrial facilities.
The kinds of businesses that may be eligible for funding are diverse and each program will have specific eligibility criteria. The level and type of funding support is equally diverse, with some funding distributed directly from a State or Federal Government, and other programs offering funding through government-funded agencies.
Programs may offer non-repayable grant funding, loans, or equity investment. Where a grant is involved, the business is usually required to co-fund 50 per cent of the proposed project costs.
If you are operating in the renewable energy and adjacent sectors, you should familiarise yourself with the following agencies and grant programs. The applicability of each opportunity will depend on your business and the project you are seeking funding for, so please contact us for a grant alignment discussion.
An increasing number of joint funding opportunities are available with Australia’s strategic international partners. We’ve provided some recent examples below. If you’re seeking funding for a project involving an international partner, don’t hesitate to contact us for more information.
Grants are generally taxable upfront, which may provide a mismatch between capital expenditure that is usually deductible over time. In some circumstances, relief may be available under the recoupment provisions.
If R&D activities are undertaken and registered with AusIndustry, there may be a clawback through an increase to assessable income, where the grant received is in connection with eligible expenditure on R&D activities.
The financial reporting requirements for grants under AASB 120 Accounting for Government Grants and Disclosure of Government Assistance should be considered. Before a grant can be recognized as income, the standard requires reasonable assurance that the entity will comply with conditions attached to the grant and that it will be received. This requires judgement and careful assessment.
We’re here to help. Please contact us so we can support you by reviewing your project pipeline to identify those likely to attract government funding, identifying appropriate grants or funding programs, or by preparing applications.
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