In my last few posts I described the process of applying for a “Climate Ready” R&D grant from the Commonwealth Government. In December I applied for a grant to develop software which will mimic the way a stone mason builds a dry-stone wall. The software will take on the hard part which is the 3D geometric manipulation of irregular objects and so enable builders to use a very low embodied energy material (rock rubble) as an alternative to more energy-intensive manufactured materials such as concrete and brick.

I’ve just been informed the application was not successful. The grants scheme is competitive which means startups will be hard pressed to compete against larger businesses who have more experienced management teams and more resources to conduct detailed market research to support their application. These two things are important selection criteria. AusIndustry (who administer the scheme) also automatically put applications for software at the bottom of the pile so all I can say is thank god for the R&D Tax Offset.

The graphic above shows total expenditure for R&D and how assistance via the ATO is nearly as much as via a grant. A significant advantage of the R&D Tax Offset compared to a grant is that the applicant needs to jump through far fewer hoops. For a brief intro to the R&D Tax scheme have a look at Startup Australia.