Every few months, a client asks us whether there are government grants they can tap into for a technology project. The answer is almost always yes, with caveats. Grants exist. Getting them requires patience, paperwork, and realistic expectations about what they’ll cover and when the money actually arrives.

Here’s a practical overview of what’s available to Australian businesses in 2026.

The Technology Investment Boost (Extended)

The Technology Investment Boost, originally introduced in the 2022-23 Budget, has been extended through mid-2026. It provides a bonus 20% tax deduction for technology expenditure. If you spend $10,000 on eligible technology, you can claim a $12,000 deduction.

The cap is $100,000 in eligible expenditure per year (so a maximum bonus deduction of $20,000). It’s not a grant in the traditional sense — it reduces your tax bill rather than providing upfront funding. But it’s straightforward to claim and doesn’t require a competitive application process.

Eligible expenses include digital enabling items, cloud computing, cybersecurity systems, and web design. Your accountant should already know about this, but it’s worth checking if you haven’t already claimed it.

Entrepreneurs’ Programme: Growth Grants

The Entrepreneurs’ Programme offers matched funding of up to $500,000 for business growth activities, including technology adoption. You need to co-invest at least dollar-for-dollar, so it’s suited to businesses that are already committed to a significant project and need partial funding support.

The application process is substantial. You’ll need a growth plan, financial projections, and evidence of market opportunity. An Entrepreneurs’ Programme adviser reviews your application and provides recommendations. The process takes months, not weeks.

This is best suited for established businesses with revenue over $1.5 million that are undertaking a major technology project — not for a startup looking for seed funding or a small business buying a new CRM.

State-Level Digital Grants

Several state governments run their own digital adoption programs:

NSW Small Business Digital Adaptation Program: Provides rebates of up to $1,500 for small businesses adopting digital tools. The list of approved tools changes periodically — check the Service NSW website for current eligibility.

Victorian Small Business Digital Adaptation Program: Similar in structure, offering $1,200 rebates for digital tool adoption. The program has been running for several years and has relatively straightforward application requirements.

Queensland Small Business Digital Grants: Up to $10,000 in matched funding for digital projects. More competitive than the NSW and Victorian programs, but the higher funding amount makes it worth applying if you have a well-defined project.

South Australia’s Digital Solutions Program: Provides subsidised advisory services and up to $5,000 for digital projects. Particularly useful for businesses that aren’t sure what technology they need and want guided advice.

These state programs change frequently — funding rounds open and close, eligibility criteria shift, and new programs launch while old ones expire. Check your state’s business.gov.au page or Small Business Commissioner website for the most current information.

R&D Tax Incentive

If your technology project involves genuine research and development — building new software, developing novel processes, or creating experimental prototypes — the R&D Tax Incentive provides a significant tax offset.

For businesses with turnover under $20 million, the offset is 43.5% of eligible R&D expenditure as a refundable tax offset. That’s a meaningful benefit, but the key word is “eligible.” The ATO’s definition of R&D is specific: it needs to involve technical uncertainty that can’t be resolved by a competent professional using existing knowledge.

Buying and implementing off-the-shelf software doesn’t qualify. Customising software in novel ways might qualify. Building a proprietary system that involves new technical approaches likely qualifies. The boundaries are nuanced, and getting R&D Tax Incentive claims right usually requires specialist advice.

Misclassifying expenditure as R&D is a compliance risk. The ATO has increased scrutiny of R&D claims in technology, and the penalties for overclaiming are significant.

Export Market Development Grant

If you’re building technology for export — SaaS products sold internationally, for example — the Export Market Development Grant (EMDG) reimburses up to 50% of eligible export marketing costs, capped at $150,000 over the grant period.

This doesn’t fund development directly, but it covers the marketing and sales activities needed to take an Australian tech product international: trade shows, international marketing campaigns, market research, and in-market visits.

Practical Advice

Apply early in the financial year. Many grant programs are first-come-first-served or have limited funding pools that deplete throughout the year. Don’t wait until June.

Budget for the application process. Writing a competitive grant application takes time. If you don’t have in-house capability, engaging a grant writer costs $2,000-$5,000 for a major application. This is usually money well spent — professional applications have significantly higher success rates.

Don’t let the grant drive the project. I’ve seen businesses contort their technology plans to fit grant criteria. This leads to poor technology decisions. Define what you actually need first, then see if grants are available to support it. The tail shouldn’t wag the dog.

Plan for cash flow timing. Most grants reimburse after expenditure, not before. You need to fund the project upfront and get reimbursed later, sometimes months later. Make sure your cash flow can handle the lag.

Keep meticulous records. Grant compliance requires detailed documentation of how funds were spent. Set up separate tracking from the start, not retroactively.

Working with Team400 on technology projects, we’ve helped clients navigate grant applications for AI and digital transformation initiatives. The grant landscape is confusing, but there’s real money available for businesses willing to put in the application effort.

Is It Worth the Effort?

For small grants under $2,000 (like the state digital adaptation rebates): absolutely. The application effort is minimal and the money is straightforward.

For larger grants ($10,000+): it depends on the size of your project and whether you were going to do it anyway. If a $50,000 technology project can attract $10,000-$25,000 in grant funding, the application effort is worthwhile. If you’re chasing a $5,000 grant for a $5,000 project and the application takes 40 hours, the maths doesn’t work.

For the R&D Tax Incentive: if you’re genuinely doing R&D, it’s one of the most generous innovation incentives in the world. If you’re stretching the definition to include routine technology work, the compliance risk isn’t worth it.

The grants are real. The money is real. But don’t mistake government grants for free money — they require effort to access and come with compliance obligations. Factor that into your decision.