As Round 4 of the Export Market Development Grant (EMDG) closes today, I thought I would share my views on where the program did not work this round, and some ideas to improve it for next time.

Firstly, some history

The EMDG has undergone some charges.  Originally it was a program that a business applied in arrears after it had spent the money.  Once all applications assessed the available budget was allocated across all applicants in what I considered was a reasonably fair basis considering how much you spent.  A business spending $300,000 would get more back than a business spending $60,000.

The main criticism here was that no one knew how much they would get back so it was very hard to plan.

To be fair the government listened and the EMDG application process was then changed to a process where you applied in advance for a particular tier.  Each tier had a maximum annual grant.  Once all applicants were accessed, the available funds were then allocated by tier, which pretty much each applicant getting the same amount.  In this case a business spending $300,000 got the same as a business spending $60,000.  And if they were in Tier 1 this was $15,000.

The criticism of this was that it was not worth the effort.  I personally know of one business that spend over $300,000 marketing in the UK to launch their product.  They sat down and worked out that the advantages of running their UK and European business through a UK subsidiary far outweighed their EMDG moneys.  End result income was removed from Australia which may someday come back as a dividend.

Now let’s look at Round 4 changes

To be fair they realized that amounts like $15,000 for Tier 1 and $24,600 for Tier 2 did not really work.

So, they decided in round 4 to try and increase the amounts that would be paid out.  They did this by working on a first come first served basis.  Allowing those successful applicants to get paid more.  In theory not a problem as many grant programs work like this.

But here is where they made a fatal flow in the process in my view.

Tier 1 was for new exporters.  But, if you had just 1 export sale to anywhere in the world in the past 18 months you were not eligible for Tier 1.

Tier 3 was for current exporters expanding to selected new markets.  But if you had 1 export sale in the past 18 months to the selected new market you were not eligible for Tier 3 for that market.

For example, I know of one business with over $1.4m in exports from the US (their main market), but had managed to snag 1 invoice of $11k from Singapore and 1 of $32k to the UK.  This made them ineligible for Tier 3 in respect of the UK or Singapore, the next markets they were planning to expand to.  They had to apply under Tier 2, but they were too late.

This meant, anything else was left to Tier 2.

Guess what – most businesses (like the example above) fell into Tier 2.  And the demand for this tier was so high that applications for Tier 2 were closed within 3.5 hours of opening on 12 November 2024.  That’s right $62m in grants gone in 3.5 hours.

But in respect of the other Tiers, these are only closing today and it looks like some of these will be undersubscribed (i.e. not all the budget for that tier has been applied for).

And they are now talking about putting some of the moneys from the undersubscribed tiers back to Tier 2 applicants (but not to new Tier 2 applicants who missed out)

Recommendations

Firstly, the definitions of Tier 1 and Tier 3 need to allow for the examples of where a business has had some, but limited success in their export markets.  One export sale should not disqualify you from a Tier.

Secondly, Austrade should take a leaf out of the Qld Governments Business Basics Grants Program.  This had the same issue of closing within hours of opening and many businesses missing out simply because for whatever reason they could not apply that quickly.  So now they have a ballot process.  All accessed applications within a time frame of a week or 2, enter into a ballot to pick the successful applicant.

Let’s see if they make any changes for the next round of the Export Market Development Grant .

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

If you are a Biotech business thinking of expanding to Korea and attending BioKorea 2025, the NSW Going Global Export Program Health to Korea program may be for you.

Eligible businesses can jointly exhibit within the Australian National Pavilion at the BioKorea in May 2025 to participate or showcase their products.

What the NSW Going Global Export Program Health to Korea covers

Investment NSW will support the exhibition costs to be part of the NSW business showcase at BioKorea 2025, which includes

• Pre-event briefing and preparations 
• Promotion of NSW delegation to Korean biotech industry
• In-market support from Investment NSW in Seoul
• Ongoing, tailored one-to-one support following the conclusion of the program

Note this does not cover travel costs such as airfares and accommodation.

Eligibility

To be eligible to apply for this program your business:

• Have headquarters in NSW with a valid ABN
• Have between 5 and 199 full-time equivalent (FTE) employees 
• Have your own staff on site for the trade show 
• Be export-capable and export-ready
• Have a product or service that is produced primarily in NSW and achieving sales already
• Have a website featuring the product or service
• Be prepared to adapt the product or service for the new market
• Be flexible regarding market-entry method
• Have resources to support marketing and development for a new market

How to Apply

Click here to learn more and apply for the NSW Going Global Export Program Health to Korea

Note applications close 31 January 2025.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

As a business owner are you aware that from 1 January 2025, intentional under or late payment of certain wages or entitlements, what the media and many call “wage theft”, can be a criminal offence.

And if found guilty under a criminal court of this, you could personally face jail time and / or a significant personal or company fine.

So here are some things you need to know to about these new laws and how you can minimise your risk.

What late or under payments are covered?

The wage theft laws cover all payments made to your employees for services rendered other than:

• superannuation contributions
• payment for taking long service leave payments
• payment for taking leave connected with being the victim of a crime
• payment for taking jury duty leave or for emergency services duties.

Note the wage theft laws generally apply to incorporated businesses.  As such if you are a sole trader, partnership, other unincorporated entities, or non-trading corporation that has employees in NSW, SA, Qld, Tas and Victoria, these laws will not be applied to you.

Intentional vs Mistake

The wage theft laws are specific so that they only deal with where you, or someone in your business, has intentionally done something that intentionally results in an any covered payments not being paid on or before the day they were due.

The key word here is intention.  This is defined under section 5.2 of the Criminal Code and how the courts interpret this.

It is pretty obvious when someone clearly intends, for example, to pay an under the award rate of pay.

But what about other instances, such as paying a person the wrong rate of pay.  Was that intentional or an honest mistake?

And this now goes to how the courts interpret intention.  They state that intention is established where a business expressly, tacitly or impliedly authorises or permits, in this case wage theft.  This includes where:

• a business culture existed that directed, encouraged, tolerated or led to non-compliance; or
• the employer failed to create and maintain a business culture that required compliance.

So how do you demonstrate it is not intentional?

It is a bit like the old saying that “ignorance of the law is no excuse”.    You need to actually understand the laws around paying staff, and demonstrate how you, as the business owner, or your staff, keep on top of your obligations to pay people in compliance with the law.

And to help with this the government has issued on 6 December 2024, the Voluntary Small Business Wage Compliance Code.  This code outlines several ways that may indicate a failure to pay the correct payment to an employee is not intentional.  These include:

1. Make reasonable efforts to ascertain correct pay rates and entitlements: This involves considering factors such as modern awards, other relevant instruments, the nature of the business, the employee’s role and duties and classifications of such, and any applicable minimum rates, loadings, allowances, penalty rates, or overtime.
2. Made reasonable efforts to stay up to date with obligations: This includes staying informed about changes in applicable legislation, modern awards, etc that apply to the employee. And staying updated on any changes in the employee’s circumstances, such as role, duties, classification, qualifications, age, hours of work, or location.
3. Seek information or advice from reliable sources such as industry associations, professional bodies, industry professionals like lawyers or consultants, payroll processing services, and resources from Fair Work.
4. Providing information that is reasonably believed to be accurate.
5. Taking reasonable steps to rectify the failure: This includes repaying the amount promptly and taking proactive measures to prevent similar issues in the future..
6. Cooperation with any inquiries or investigations

Other circumstances that may indicate the failure was not intentional include:

• whether the failure arose from a mistake or error in payroll processes or by the banks
• if there was ambiguity in interpreting obligations – I have seen instances where 2 different Fair Work staff give different answers as to which classification for a staff member
• who identified the issue. Was it the employer through proactive review?
• how the employer responded to being made aware of the failure.

What is the process?

The process is that the Fair Work Ombudsman would conduct an investigation.

They then make the decision to refer to the Director of Public Prosecutions or the Australian Federal Police for criminal prosecution if they feel it is appropriate.

But if you are a small business (employing less than 15 staff), as long as you have complied with the Voluntary Small Business Wage Compliance Code noted above, then you won’t be referred for criminal prosecution.  But you may still face civil penalties.

If you employ more than 15 staff, you can still avoid criminal prosecution by entering into a cooperation agreement.  But I expect Fair Work will take the factors in the Voluntary Small Business Wage Compliance Code when they assess whether they will agree to this.

Next steps

If you have not done so already, have a look at the factors above under the Voluntary Small Business Wage Compliance Code and assess how your business would be viewed.    Also, Fair Work have published a “Guide to paying employees correctly and the Voluntary Small Business Wage Compliance Code” which gives you a checklist you can work through.

If necessary, seek appropriate professional advice.

Here is a link to the full Voluntary Small Business Wage Compliance Code and Fair Work guide

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

3 times in the past week someone has asked me about setting up a social enterprise to use their business model to reinvest all or part of their profits to address societal issues.

But there is no such legal term as “Social Enterprise” in Australia.   For example, you can’t go ASIC (Australian Securities and Investment Corporation) or the ACNC (The Australian Charities and Not-for-Profits Commission) and say you want to set up a social enterprise.

As such, some people get confused and stuck on how to do this – so this blog is aimed to help you understand more about social enterprises.

What structure do you use to set up a social enterprise

From my perspective, those who are thinking about a social enterprise, the first and most important thing you need to determine before you start, is what sort of structure you want to operate under and how you want to fund the social outcomes you are trying to deliver.

You can be a “For Profit Social Enterprise”. 

These are enterprises that generate profit to make contributions or donations that support their social mission.  Thank You Water and Who Gives a Crap toilet paper are examples of this.  In this version you typically have shareholders who would be entitled to their share of the dividend and the assets of the social enterprise.   These businesses need to balance out returns to shareholders with contributions to their social mission.

You can be a “Not For Profit Social Enterprise”. 

These are enterprises use their assets for the stated purpose of the enterprise.  In this version you typically have members who are not entitled to any of the returns or assets of the social enterprise.  A Not For Profit Social Enterprise can be a charity and can apply for what is known as “deductible gift recipient”, which allows you to receive tax deductible gifts or donations.

Or you can have a hybrid organisation which has a combination of for profit and not for profit organisations.  In this way you can have a for profit business generating returns which helps partially fund your social purpose.  The balance of the funds can come from donations or philanthropic grants for example.

Factors influencing your structure

When thinking about your structure things to consider include:

• Where will your funding come from?

Donations and philanthropic funding can generally only be directed to not for profits.   For profit entities can seek equity investors to raise funds by issuing shares. Similarly, not for profits can also seek investors to raise funds through impact investment usually involving debt.

• Where do you want profits to go?

In a not for profit, profits are not distributed outside of the organisation – which means no dividends or distributions can be made to members, and all profits are directed to achieving the organisation’s mission.

In a for profit social enterprise, profits are normally partially distributed to investors and partially reinvested into the social purpose of the organisation.

• Does your organisation hope to access charitable and other tax concessions?

Charitable concessions are typically only available to not for profits registered as charities.  Deductible Gift Recipient status endorsement so that people can claim a tax deduction for donations made, is even more limited to not for profits.

Additional Resources

Thankfully some organisations understand the complexity round the term social enterprise and publish some handy free guides.  One such organisation is Justice Connect with their Not-for-profit Law program.  Click here to access their guides around setting up a social enterprise.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

I was interested to see in the latest Startup Muster 2024 Report that 37% of the startups stated that they were aligned with the “Enabling Capabilities” priority area of the National Reconstruction Fund (NRF).

This is nearly double the next priority area.  And this scares me.

Why, because I believe the term “enabling technologies” has been misunderstood by many. 

From what I can see, many simply focus on the words like artificial intelligence (AI) technologies; advanced information or communication technologies; quantum technologies; autonomous systems; robotics technologies etc. 

They think that as they are building an AI solution for example, they therefore fall into the “enabling technologies” priority area of the NRF and its sister fund, the Industry Growth Program (IGF). 

This was me for a while, till I dug deeper into the eligibility requirements and personally spoke to people in AusIndustry about “enabling technologies”.

What I clarified was that the NRF and IGF are both focused on “manufacturing technologies and products that support the advancement of Australia’s industrial capability”. In simple terms advanced manufacturing.

What that means for example, that if your AI solution is focused on a service industry rather than manufacturing, then it your AI solution probably does not meet the eligibility rules of the NRF or the IGF.

An example of this is the most recent investment by the NRF in Quantum Brilliance.  This $13m investment was done under the “enabling capabilities” priority area.  But the money will be used to help build a quantum diamond facility.

My Recommendation

My recommendation for all those startups that think they may be covered under the “Enabling Capabilities” priority area of the NRF (and IGF) is this.  Why not right now apply under the IGF to get access to a free advisor.  If your application gets accepted then there is a chance you will be eligible for funding under the IGF and NRF.

If it does not get accepted, in the absence of pivoting, you need to plan your way forward without any access to funds under the IGF or NRF as they now stand.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

The Tech Ready Women Investment Ready Program is a program to equip women with the skills, network and confidence to raise capital.

What the Tech Ready Women Female Founder Startup Program covers

This 5-month program is focuses on:

• learning practical knowledge and tools to prepare for and navigate the capital-raising process
• warm introductions to investors
• guidance from mentors that invest or successfully raised capital;
• due diligence support
• improving your confidence

The learning modules cover:

• Startup and Capital Funding Strategy
• Setting Up to Raise Capital
• Market and Unique Value Proposition
• Business Model and Financial Forecasting
• Startup and Team Performance
• The Capital Raise

After that, the program provides Q&A, Monthly Group Check-In, and Monthly 1:1 Advisory.

Eligibility

This program is for female founders with innovative businesses that have:

• A scalable solution that solves a problem for one or multiple customer groups;
• Some traction as noted by first users and/or customers; and
• A company structure, or in the process of undertaking company registration.

Cost of the Program

There are 40 part scholarships available which reduce the cost from of $6,295 inc GST to $795.30 inc GST

20 of these are in Qld and the other 20 for the rest of Australia

Learn More

Applications are now open for the National Cohort and they close on 10 January 2025.

In respect of the QLD cohort, you can register your interest whilst waiting for applications to open

There is a webinar and Q&A about the Tech Ready Women Investment Ready Program on 12 December 2024

Click here to learn more

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

The ACT Disability Inclusion Grants provides up to $20,000 in financial support to organisations and small businesses for increased opportunities for people with disability to participate in mainstream community or social groups.

For example, in the prior round one company was able to get $4,257 in funding to run workshops for eligible Canberra based community organisations to enhance knowledge and the skills required to welcome people with disability and developing a Disability Action Inclusion Plans.

Small Business Eligibility

Small businesses can apply if they operate in the ACT and have fewer than 20 persons (including non-employing business)

Project eligibility

Eligible projects must: 

• Provide an activity, project, or initiative that will be located in the ACT
• Identify how the program will benefit ACT residents with disability
• Have not received funding from another source to deliver the same or similar project

Note the priority areas for the 2025 program are

• Reduce or remove physical, attitudinal, and/or communication barriers to access and inclusion
• Enable greater participation in community life for people with disability
• Include people with disability in the planning and implementation
• Result in meaningful improvements with a broad reach benefiting many people with disability in the ACT community

Learn More

To learn more about the ACT Disability Inclusion Grants click here

Note applications for the 2025 round close 18 February 2025

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

Are you a QLD based business with ideas and groundbreaking technology across sport, major events, broadcasting or entertainment?  Then maybe you can help the National Rugby League (NRL) solve some of their pressing challenges and get funding of $25,000 as part of the NRL Magic Round Innovation Partnership.

Your idea or technology needs to focus on NRL’s priority innovation areas of:

• Strengthen the appeal and engagement for new audiences
• Better engage Culturally and Linguistically Diverse (CALD) fans
• Enhance the in-stadium experience
• Better enable volunteers and administrators to improve the participation experience
• Boost the accessibility and appeal of stats to drive user engagement
• Elevate the quality of the fan experience for those watching at home
• Advance performance excellence and promote long-term career health for NRL/NRLW athletes.

What the NRL Magic Round Innovation Partnership can deliver to your business

• Funding of $25,000 (ex GST)
• Gain exposure and experience piloting your technology with the NRL
• Opportunity to showcase technology at the 2025 NRL Magic Round Tech Showcase
• Professional guidance from Australian Sports Technology Network (and a one-year membership to their services).

Eligibility

Your business needs to:

• Be an established Queensland-based business (ABN registered in QLD)) with a full-time equivalent (FTE) employee count below 200
• must have a product — being developed in Queensland — which is at, or beyond, the minimum viable product (MVP) stage

Note businesses within and outside of sport technology are encouraged to apply to pivot and tailor solutions to sport and major events.

Learn More

To learn more about the NRL Magic Round Innovation Partnership click here.

Note applications close 9 January 2025

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

If you are thinking of a 2024 Christmas shutdown for your business in December 2024 / January 2025, you need to be aware of the rules around this.

Firstly you must give your staff a minimum of 28 days written notice of the temporary shutdown period.  So this notice is now becoming time critical now that we are in late November.

Secondly, as long as the temporary shutdown is reasonable, and staff have sufficient annual leave, you can direct your staff to take accrued annual leave during the temporary shutdown period.

But, if the staff member has insufficient leave to cover the period of the temporary shutdown, you can no longer force them take unpaid leave or annual leave in advance.  You need to get a written agreement from the employee that they will take leave without pay, or to take annual leave in advance.

If they don’t agree, then you need to pay them as if they were working even if the business is closed.  Not a great outcome.

For this reason, if you are a business that is planning to have a temporary shutdown at Christmas (or at any other time), it is important that you properly manage staff annual leave during the year so they have sufficient leave to cover the shutdown period.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

If you are a biotech health business and thinking of expanding to the USA, the NSW Going Global Export Program Health to USA may be for you. 

The program runs from March to June 2025 and includes attendance at Bio International Convention (16-19 June 2025, Boston).

What the NSW Going Global Export Program – Health to USA covers

You get access to:

• Market intelligence briefings
• Business partnering and introductions
• Ongoing advice and follow up.

Eligibility

To be eligible to apply for the overall NSW Going Global Program your business:

• Have headquarters in NSW with a valid ABN
• Be export-capable and export-ready
• Have between 5 and 199 full-time equivalent employees
• The product or service is achieving sales already
• Have a website featuring the product or service
• Be prepared to adapt the product or service for the market
• Have a product or service that is produced primarily in NSW

Additional eligibility requirements for the Health to USA stream:

• Funding or revenue to support USA market expansion and commitment to establish business partnership/s in the USA in the next 12-18 months 
• A clear pathway to profitability or already a profitable business 
• identified potential customers and partners in the USA and/or already have some market traction 
• Clinically validated (if product is subject to trial) or will be in the next 12-18 months 

How to Apply

Click here to learn more and apply for the NSW Going Global Export Program – Health to USA

Note applications close 31 January 2025.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052