So don’t be surprised if one or more of your clients also asks whether they can get help as well.
Open most business-related government websites and, sooner or later, you’re bound to come across information about financial assistance schemes. Local, state, territory and federal agencies offer a wide range of schemes these days, each of them designed to encourage businesses in one particular activity or another. It could be to help a firm start exporting, or to employ a new trainee; it might be to relocate to a new city, or to go online. The list of supported activities can sometimes seem endless.
And the forms of possible financial help are pretty diverse: grants, subsidies, rebates, tax concessions, amongst others. Not surprisingly, many business managers are keen to know not only what’s out there, but also how they can get access to such money.
So who actually gets financial assistance from government?
[table id=13 /]
*Businesses could identify more than one type of financial assistance.
According to the Australian Bureau of Statistics, about 14% (that’s roughly 1 in every 7 firms) reports receiving some firm of financial help, the most common being one or another rebates.
However, the smaller you are, it seems the lower your odds. Big business seems far more adept as accessing this help than the small end of town, and as Table 1 shows, only about 8% of micro-firms receive help, whereas more than half of all big firms do.
If your small business clients are in particular industry sectors, then they’re more likely to get help than others. Almost a third of firms operating in the (rather broadly defined) fields of agriculture, forestry and fishing receive some form of assistance. Around a quarter of businesses in the health care and social services sector also receive support, whereas only about 4% in the financial services sector do so.
A key point here is that specific industries tend to receive different forms of assistance. Many of the most active sectors in terms of assistance sought received it in the form of grants and rebates. However, the balance and forms of assistance mechanisms accessed differs by sector.
Nevertheless, businesses still get less help than individuals. Whilst 14% of all businesses might seem like a lot of funding to be doled out, it’s worth noting that approximately 5 million Australian residents are believed to have received some form of income support payment from government last year, including Newstart Allowance and disability pension.[1]
So, in order for a business to maximise its chances of receiving an appropriate form of assistance, some guidance may be useful. This is emphasised by a visit to the Federal Government’s ‘business.gov.au’ site. Currently, there are 508 federal and state assistance programs listed. That’s quite a maze to negotiate.
There are certainly ways in which accountancy practices can assist clients to apply for such support. An obvious step is to ensure that their financial records and forecasts are accurate and realistic; in many cases, a business plan will also be required.
Some accountancy and business services firms may possess the in-house knowledge and expertise to match clients to the most appropriate program. However, in many cases that will not be the case. In such a circumstance, firms would do well to familiarise themselves, and maybe even establish a working relationship with, locally based organisations whose role it is to assist in this manner. The network of business enterprise centres (BECs), AusIndustry offices and other agencies have the expertise to facilitate access to programs. And, serendipitously, a listing of these agencies can also be found on ‘business.gov.au’, making the process of providing practical advice easier.
[1] Fleur Anderson (2013) “Deciding Who Is Deserving” The Australian Financial Review – Perspective section, 25-27 January edition, p.20.
