ContextProgram descriptions

The objective of the Clean Technology Innovation Program (CTIP) was to support applied research and development, proof of concept and early stage commercialisation of clean technology, products and services. The program opened on 6 July 2012 and closed on 30 June 2016.

The CTIP is one of three Clean Technology Programs announced together. The other two programs are the Clean Technology Investment Program and the Clean Technology Food and Foundries Investment Program, which supported manufacturers in investing in new plant and equipment to reduce energy costs.

The objective of Commercialisation Australia (CA) was to build the capacity of, and opportunities for, Australia’s talented researchers, entrepreneurs and innovative firms to convert intellectual property (IP) into commercial ventures, creating high skill jobs and increasing our global competitiveness. It achieved this by offering a range of tailored assistance measures. CA provided assistance under four key components: Early Stage Commercialisation, Experienced Executives, Proof of Concept and Skills and Knowledge. Funding for CA ran from 2009–10 to 2014–15, with the last grants awarded in June 2014.

The objective of the Enterprise Connect (EC) program was to provide small and medium sized enterprises with better access to new ideas, knowledge and technologies, to enable businesses to become more innovative, efficient and competitive and to lift productivity across Australian industry. The program was launched in 2007–08, and concluded in 2014–15. The Entrepreneurs’ Programme, announced in May 2014, continued some of the elements of the EC program.

The EC program elements included: Researchers in Business, Tailored Advisory Services, Continuous Improvement Tailored Advisory Services and Business Reviews. Businesses in the manufacturing industry; manufacturing related services; resources technology; defence; clean energy; creative industries and remote Australia received these grants and services. Firms with turnover between $1.5m and $100m ($1m for creative/clean tech industries; $750,000 in regional areas) and that have been trading for three years and had an ABN were eligible.

New Industry Partners were engaged on 1 July 2015 to deliver business advisory and facilitation services through the Entrepreneurs’ Programme, and have taken on responsibility for the delivery of the remaining EC services.

As well as providing business advice and support services, the EC program also provided matched grants to a number of participants to assist participants to implement the advice received. Businesses in the EC category in the PAT received EC services and grants. Only firms who received a grant and a service are included the PAT (not firms who received a service only).

The Entrepreneurs’ Programme (EP) is a suite of advisory and facilitation services which connect Australian small and medium sized firms with the capabilities and networks they need to innovate, compete and grow. To do this, EP assesses individual business needs. It offers tailored support through a suite of advisory and facilitation services, which encompass a broad range of business capability and innovation activities. Businesses are referred to relevant services, which are delivered through four programme elements:

• Accelerating Commercialisation - providing expert guidance, connections and financial support to assist entrepreneurs, start-ups, small to medium businesses and researchers to commercialise their novel product, process or service;
• Business Management - providing support for business improvement and growth;.
• Innovation Connections - providing support for business to collaborate with the research sector and connect with appropriate sources of expertise, technology and advice; and
• Incubator Support - providing support to new and existing incubators assisting Australian start-ups to develop their capabilities and prospects of commercial success in international markets.

View the Programme Guidelines for further details.

Only firms who received a grant and a service are included the PAT (not firms who received a service only).

The R&D Tax Concession (RDTC) was introduced in 1985 to increase the level of business expenditure on R&D in Australia and to make industry more internationally competitive. The levels of benefit provided by the RDTC varied throughout its existence. At the time the program was replaced in 2011, the RDTC allowed companies incurring eligible R&D expenditure to claim either a 125 per cent deduction or a 175 per cent premium deduction. Small companies with less than $5 million turnover could obtain cash refunds for eligible R&D under certain circumstances. The RDTC was replaced by the R&D Tax Incentive (RDTI) from 1 July 2011. Data in the PAT begins in 2001–02.

The number of registered businesses reported under the RDTC is not directly comparable to the number of registered businesses reported under the RDTI due to different registration requirements for each program. Under the RDTI, the head entity of a ‘consolidated group for tax purposes’ registers on behalf of all R&D-performing entities within that group. As a result, the number of registered businesses reported under the RDTI is significantly lower than the number of participants reported under the RDTC, under which individual R&D-performing entities registered separately. The count of all R&D-performing entities under the RDTI, however, is comparable to the number of registered businesses reported under the RDTC.

The R&D Tax Incentive (RDTI) replaced the R&D Tax Concession (RDTC) on 1 July 2011. The RDTI is a broad based, market driven, self-assessed incentive delivered through Australia’s taxation system, designed to induce additional industry investment in R&D. The RDTI provides a tax offset for some of a company's cost of doing eligible R&D activities by reducing a company's income tax liability.

Tax offsets of 43.5 per cent or 38.5 per cent are available for costs incurred on eligible activities depending on a company’s annual aggregated turnover. The 43.5 per cent benefit is a refundable offset, while the 38.5 per cent offset is non-refundable. When the RDTI was introduced on 1 July 2011, the offset rates were slightly higher at 45 per cent and 40 per cent respectively. The reduction to their present levels occurred in 2016. Reforms to the RDTI were announced in the 2018-19 Budget. These reforms will improve the program’s effectiveness, integrity and additionality. Under these reforms, the rates of benefit for both incentives will vary based on the claimant’s applicable corporate tax rate, and for large companies, how intensively R&D is performed. The enabling legislation for these reforms is currently before Parliament.

The number of registered businesses reported under the RDTC is not directly comparable to the number of registered businesses reported under the RDTI due to different registration requirements for each program. Under the RDTI, the head entity of a ‘consolidated group for tax purposes’ registers on behalf of all R&D-performing entities within that group. As a result, the number of registered businesses reported under the RDTI is significantly lower than the number of participants reported under the RDTC, under which individual R&D-performing entities registered separately. The count of all R&D-performing entities under the RDTI, however, is comparable to the number of registered businesses reported under the RDTC.

The objective of the Textile, Clothing and Footwear Strategic Investment Program (TCFSIP) was to foster the development of sustainable and internationally competitive TCF industries in Australia, by providing incentives that promoted investment and innovation. The TCFSIP consisted of five types of grants including grants for new TCF plant or building expenditure, and research and development expenditure. Some grants began in 1998–99 or 1999–00, with all other grants commencing from 2000–01. Data in the PAT begins in 2001–02.

In 2005–06 changes were made to the TCFSIP, known from then on as TCF Post-2005 (SIP) scheme. The TCF Post-2005 (SIP) scheme was for the making of grants in connection with the design and manufacture, in Australia, of eligible TCF products. It consisted of two types of grants: grants for TCF capital investment expenditure, and grants for research and development expenditure. In the PAT TCFSIP and TCF Post-2005 (SIP) are included together as one program for ease of viewing.