Matching-Funds Grants Explained for Australian Businesses

Start with total eligible project expenditure

The funding percentage normally applies to costs the guidelines classify as eligible, not the entire commercial project. Ineligible costs remain the business’s responsibility and may not count toward the required contribution.

Build the budget by testing every line against the eligible and ineligible expenditure rules. Then apply the program’s funding ratio, minimum and maximum grant amounts.

• Total project cost
• Eligible project expenditure
• Grant percentage and cap
• Required applicant contribution
• Ineligible costs funded separately

Cash and in-kind contributions are different

Some programs require the contribution entirely in cash. Others allow defined in-kind contributions such as eligible staff time, facilities or partner resources. Do not count in-kind support unless the current guidelines expressly permit it and explain how it must be valued.

Check whether other government funding, loans, parent-company transfers or partner contributions are allowed. Programs can restrict double funding or cap the government-funded portion of the contribution.

• Permitted source of funds
• Cash versus in-kind rules
• Partner contribution responsibilities
• Evidence and valuation method
• Restrictions on other government assistance

Evidence that the contribution is available

Programs may request bank evidence, finance documents, board approval, partner letters or an accountant declaration. The evidence must relate to the applicant and the contribution described in the budget. A future sales forecast may not satisfy a requirement for committed funding.

Also test cash flow. Grant payments may be made after milestones or evidence of expenditure, so the business may need enough working capital to pay costs before reimbursement.

• Source and timing of funds
• Authority to commit the funds
• Milestone and reimbursement schedule
• Contingency for cost increases
• GST and tax treatment confirmed with an appropriate adviser

Questions to answer before applying

Can the business fund its share even if the grant pays later? Are all contribution sources permitted? What happens if actual costs exceed the approved budget? Does reducing the project size breach a minimum project value? These questions are as important as the advertised grant maximum.

Use the current program guidelines and official contact for definitive answers. Au Grant Monitor provides general research and matching support, not accounting, tax or financial advice.