The Commercial Ready Program is a competitive, merit-based program launched in 2004 by AusIndustry and is scheduled to operate until 2011. It provides $200 million a year to small and medium sized enterprises.
Program features
Commercial Ready aims to:
encourage the growth and successful innovation of Australian companies by increasing the level of research and development, proof-of-concept and early-stage commercialisation by Australian businesses;
- increase the international competitiveness of Australian businesses;
- foster greater collaboration between industry and industry and research institutions;
- and generate national benefit for the Australian economy.
Mode of operation
Commercial Ready provides grants ranging from $50,000 up to a limit of $5 million for eligible projects of up to three years in duration.
An eligible project must aim to produce, commercialise or establish the commercial or technical viability of a new, clearly identified product process or service.
Companies can apply for funding for any or all aspects of the development of a new product, process or service including research and development, proof-of-concept, and early-stage commercialisation up to a stage at which it can be brought to market.
Grant payments will only be claimable for eligible activities that occur after the agreement is signed.
Eligibility
To be eligible an applicant must:
- be a non-tax exempt company incorporated under the Corporations Act 2001;
- have, or be part of a group, that has an annual turnover of less than $50 million in each of the three financial years prior the application;
- be able to demonstrate that it will match the grant provided on a dollar for dollar basis over the life of the project; and
- be able to demonstrate that it has access to, or the beneficial use of, any intellectual property necessary to carry out and/or commercialise the proposed project.
Selection criteria
Eligible applications will be assessed against the following five criteria:
- management capability of the applicant;
- commercial potential of the project;
- technical strength of the project, and the technical capability and resources available to the applicant;
- extent to which the project is likely to provide national benefits; and
- need for funding.
Determining suitability
Applicants can complete a Commercial Ready Customer Enquiry Form by clicking on the following link: customer enquiry form.
This form will give you an idea of whether you meet the basic eligibility criteria. After submitting the form to AusIndustry, an AusIndustry customer service manager will contact you and provide further advice on your suitability for Commercial Ready. Alternatively you can call the AusIndustry hotline on 13 28 46 to be put in touch with an AusIndustry customer service manager who will advise you on your suitability for the program.
Joint projects
One aim of Commercial Ready is to foster collaboration and co-operation between businesses and/or researchers. This may be achieved by customers undertaking joint projects. Joint projects may involve any number of entities participating in the project.
Application assessment process
The Industry Research and Development Board will assess and rate the merit of applications of any size, up to a maximum of $5 million. AusIndustry delegates are authorised to assess applications for grants of $250,000 or less.
Decision making timeframe
AusIndustry is aiming to make decisions on Commercial Ready applications within 75 days from the date of lodgement of an application.
Eligible expenditure guidelines
For project expenditure to qualify as eligible expenditure it must be incurred on or after the project commencement data and before the project completion data. In-kind contributions are not eligible expenditure.
Commercial Ready project budgets must involve:
- research and developments, and/or
- proof-of-concept, and/or
- early stage commercialisation.
Overseas activities and expenditure
Normally limited to 10 per cent of eligible expenditure.
Labour expenditure
Personnel considered under this category will be people directly employed on the core elements of the agreed project. This does not include employees engaged solely in the installation or construction of plant or prototypes, or any personnel performing administrative functions.
A set rate of 30 per cent covers all labour on-costs applying to the employee's eligible salary costs. Support is also provided for salary of graduates.
Plant expenditure
For newly purchased plant and pre-existing purchased plant depreciation charges over the life of the agreed project can be claimed. Running costs can also be claimed if they can be readily verifiable and may include items such as rent, light and power, and repairs and maintenance.
Costs associated with hired/leased plant can also be claimed.
Prototype expenditure
Prototype expenditure is only eligible where the construction and use of the prototype contributes directly to providing the concept for which the research and development was originally undertaken.
Intellectual property protection expenditure
Reasonable costs to protect intellectual property related to the agreed project up to the lesser of 10 per cent of eligible expenditure or $100,000.
Product/process design
Eligible expenditures include expenditure necessary to translate a working product/process prototype into a commercially viable design configuration.
Expenditure on routine or periodic alterations to existing products, production lines, manufacturing processes, services, and other on-going operations will be eligible to the extent that it directly supports the grant project.
Trial production runs and demonstration activities
Eligible expenditure under this category include costs incurred in validations, establishing efficacy, demonstration of capability, scale-up, and development of evidence of the stability or reproducibility of processes.
Market analysis and research
Includes market research related to the agreed project but not the marketing of the agreed project outcomes.
Collaboration
For costs to qualify as eligible expenditure, it must be demonstrated that the collaboration is likely to directly contribute to the successful completion of the project.
New and leading-edge technology acquisition and its adaptation
Costs associated with the acquisition and adaptations of new leading-edge technologies are eligible where such activities are likely to directly contribute to the successful completion of the agreed project.
Ineligible expenditure
The Commercial Ready program will not fund the following:
- sales promotion
- quality control
- management studies
- routine collection of information
- any activity related to the reproduction of a commercial product or process by a physical examination of an existing system or from plans, blueprint, detailed specifications or publicly available information
The list above is not exhaustive and other activity expenditure may also be deemed ineligible.
For more information, call AusIndustry on 13 28 46.