Grant guidelines - Climate Change Business Innovation

The Tasmanian Government is committed to taking practical climate action and collaborating with Tasmanian businesses to reduce emissions, transition to a low emissions economy, and increase resilience to the impacts of a changing climate.

Under the Climate Change (State Action) Act 2008, there is a requirement to consult with business and industry representatives to develop sectoral Emissions Reduction and Resilience Plans (the plans) for the following six sectors: transport, energy, waste, agriculture, industrial processes and product use (IPPU), and land use, land use change, and forestry (LULUCF).

Stakeholder consultation for these plans took place in 2023 and 2024. During consultation, business and industry consistently identified that a key barrier to transitioning to a low emissions economy was the cost of trialling and developing new ways of doing business that could reduce emissions and build resilience. They identified direct financial support and sharing lessons from early adopters and innovative projects as enablers in this transition.

The Tasmanian Government released the Emissions Reduction and Resilience Plans in late 2024. Tasmania’s Emissions Reduction and Resilience Roadmap 2024-29 (the roadmap) was also released in November 2024 to link together the sectoral plans and Tasmania’s Risk Assessment for Climate Change 2024. The roadmap includes new commitments to support businesses and industries in all sectors to address common issues and opportunities and sets out how the government will maintain net zero emissions across the economy through 2030 and beyond.

The Climate Change Business Innovation Grant Program is a commitment in the roadmap to support businesses to take action on climate change, focusing on local innovation, collaboration and partnerships.

1.1. Objectives

The program aims to:

• support Tasmanian businesses to take local, innovative climate action to:
  • reduce emissions and transition to a low-emissions economy
  • build resilience and manage the impacts of a changing climate
• facilitate collaboration and partnerships that improve information sharing and awareness of climate change impacts and opportunities.
• provide opportunities and co-benefits to the specific industry or broader Tasmanian community.

For the purposes of this program, innovative action means applying a new, novel or unique concept to your industry or the Tasmanian context.

1.2. Outcomes

The following outcomes can be expected as a direct result of this grant program:

• Enhanced understanding of climate change impacts and opportunities within the Tasmanian business context.
• Reduction in emissions from businesses.
• Greater support and innovation in Tasmania’s transition to a low emissions economy.
• Increased adoption of existing and emerging emissions reduction technologies in Tasmania.
• Improved resilience among Tasmanian businesses to better manage or respond to the impacts of a changing climate.
• Greater collaboration within and across sectors and along supply chains.
• Increased opportunities and co-benefits for the broader Tasmanian community.

The Tasmanian Government has allocated $550,000 to support businesses to take action on climate change, focusing on local innovation, collaboration, and partnerships.

The program will provide grants of between $25,000 and $100,000 to eligible businesses.

Successful applicants must supply a cash co-contribution equal to at least 30 per cent (30%) of the approved grant funding amount.

• Example 1: To receive the maximum grant amount of $100,000, your co-contribution must be at least $30,000, and the total project budget must be at least $130,000.
• Example 2: To receive the minimum grant amount of $25,000, your co-contribution must be at least $7,500, and your total project budget must be at least $32,500.

This is a competitive grant process with limited funding. After the application closing date, a panel will assess all applications comparatively against the assessment criteria.

Due to the limited funding, applications that meet the eligibility criteria will not automatically receive a grant and not all applications will be successful.

To be eligible for a grant under this program, you must:

• be registered for tax purposes in Australia with a continuously active Australian Business Number (ABN) on or before 22 September 2024
• Exceptions to the above may be considered, for example:
  • An applicant that has purchased a business that was actively trading for at least 12 months before 22 September 2024.
  • An applicant that has changed their business structure which has resulted in a new active ABN issued after 22 September 2024, but the business has been in operation for at least 12 months from the time of applying for the grant.

  Note: you will be required to provide relevant evidence to support your application.

• be able to demonstrate that the business is currently located and operating in Tasmania
• be able to demonstrate an annual business turnover of greater than $500,000 and less than $55 million in either of the two previous financial years
• have the funding available to co‑contribute at least 30 per cent (30%) of the approved grant funding amount.

Due to limited funding, applicants who meet the applicant eligibility criteria will not automatically be awarded grant funding, and not all applications will be successful. Applications will be competitively assessed against the assessment criteria. Only one application per ABN will be considered.

You must provide the following documentation as part of your application to support your eligibility claims:

• A formal document demonstrating the business address and that it is currently operating at the time of application, such as:
  • a copy of the most recent utility account (for example Aurora Energy)
  • evidence of recent sales of goods and/or services to customers in the calendar week before applying
  • a current business lease agreement.
• A copy of a tax return as submitted to the Australian Taxation Office that demonstrates annual business sales turnover for either of the two previous financial years.
  If a tax return document is unavailable, you should supply other suitable verified information and evidence for us to assess your annual business turnover.

• Evidence demonstrating a sound financial position to commit to the co-contribution amount or partners involved in meeting this, such as:
  • annual financial statements
  • accountant-verified profit and loss and balance sheets
  • a bank statement showing available funds.

  If financial statements are unavailable, you should supply other suitable verified information and evidence for us to assess your financial viability to commit to the co-contribution amount.

We may use third-party software to check the authenticity of your information.

Regardless of whether you meet the other eligibility criteria, you will not be eligible for a grant if you are:

• a not-for-profit organisation, incorporated association, or charity, unless the organisation operates as a business employing paid staff and selling goods and services to customers that make up more than 30 per cent of the entity’s income
• a business for sale, planning towards sale, trading insolvent, under external administration or bankruptcy at the time of applying
• an investment entity that solely generates passive turnover from residential and commercial property investment and/or the renting of property
• a local, state or Australian Government entity
• an entity whose primary purpose is political activity

You also may not be eligible for this grant if you:

• have previously failed to acquit a grant awarded to you by the Tasmanian Government.

If you are not eligible to apply, you may still be part of a joint application or consortium, provided you have an eligible lead business. We will not assess applications from ineligible applicants.

If you have any questions about who can apply or the eligibility criteria, please contact the Climate Change Office by email: climatechange@recfit.tas.gov.au or phone: 03 6166 4466.

You may work in partnership with others to deliver a project, provided the lead business is an eligible applicant and the project is otherwise eligible. The lead business will be the program applicant and will hold full responsibility for the project, including any insurance, legal, financial, and liability associated with delivering the project in accordance with the grant agreement.

Example partner groups may include:

• local businesses
• non-Tasmanian businesses
• supply chains
• research and industry-focused organisations
• tertiary or vocational education institutions
• non-government organisations
• local government.

In such cases, you will need to include details of how the partnership will work, including:

• identification of the roles and responsibilities of each organisation or individual in the partnership
• how the applicant will engage project partners to facilitate the project successfully, and
• a letter of support from each partner detailing the partner’s contribution to the project, including any financial, resourcing, expertise, or in-kind support.

6.1. Scope and project categories

This program is intentionally broad in order to support a diverse range of business and industry projects that will deliver on the program objectives.

The following project categories have been identified to support project development and assist applicants in defining the scope of their projects. Projects may have aspects of one or more categories. You should identify one main category in your application.

• Demonstrate or trial a new or existing concept in your industry or the Tasmanian context.
• Duplicate or upscale an existing concept.
• Distribute information and benefits of a concept to the broader community for awareness and capability building.

If your project does not align with any of the project categories, but you still believe it meets the program objectives, please call the Climate Change Office on 03 6166 4466 to discuss eligibility.

We recognise that this program's scope may overlap with the objectives of other government-supported programs. Therefore, this program will not fund projects that have received Tasmanian government funding for the same or a similar project in the previous two years.

6.2. Project eligibility

Projects need to:

• align with one or more of the program objectives
• identify a problem or issue and attempt to resolve it
• be of broader benefit to the Tasmanian community
• be undertaken in Tasmania
• be completed within 18 months of signing the grant agreement.

We encourage applicants to consider using second-hand or repurposed items where appropriate, as long as they are in good condition and operational.

Your project may form part of a broader program of work if it independently meets all project eligibility criteria, and the project’s scope, including start and end points, and links with other phases of the program of work, are clearly articulated in your application.

6.3. Project ineligibility

Projects must not:

• consist solely of conventional capital expenditure (such as solar panels or electric vehicles) unless these purchases are a component of a broader innovative project that meets the program objectives
• consist solely of research or a feasibility study unless it is a part of a particularly complex work program with multiple parts, and meets the program objectives
• be to the economic detriment of other similar Tasmanian-based businesses
• duplicate projects that are already underway or planned
• have already commenced, been publicly announced or been completed
• focus primarily on business, marketing, workforce or financial planning
• contribute only to routine operations of the business
• include the purchase of vehicles that are not for business-related activities
• have already received state, Australian or local government funding
• extend beyond 18 months of the start date.

Grant funding cannot be used to fund:

• normal business running expenses, salaries or wages, stationery, repairs, equipment, rentals or leases (unless rental/lease is specifically part of the proposed project)
• reimbursement of retrospective project expenditure
• legal fees associated with the project or this grant.

7.1. Other available funding sources

You should consider whether your project is best suited to this program's objectives or whether it would be better supported by another government program, including, but not limited to:

• PowerSmart for Small Business

Your application must demonstrate that you are an eligible applicant (see Section 3) and that your project is eligible (see Section 6).

Eligible applications will be competitively assessed against the following assessment criteria based on the evidence you provide in your application.

8.1. Assessment process

A departmental panel with relevant knowledge and experience will assess applications.

Applications will be assessed against other applications received and the extent to which each application meets the eligibility and assessment criteria detailed in these program guidelines.

The panel may ask you for more information to support or clarify your application during the assessment process. Unless otherwise advised, you must provide this information within three working days. Failure to provide this information within the timeframe may result in an unsuccessful application.

Please provide the following to support your application:

1. A project plan, detailing:
   1. project description and aims (objective), such as:
      • what is the problem you are trying to solve?
   2. outcomes, or the benefits of the project, such as:
      • how well could the concept be adopted more broadly in Tasmania, including consideration of:
        • the estimated ongoing costs
        • availability of the relevant technology in Tasmania
      • any other social, economic or environmental benefits and impacts
      • how the outcomes will be measured
   3. all activities (outputs) to be delivered, governance, maximum 18-month timeline and risk management
   4. identified resources and appropriately qualified or experienced personnel
   5. a communication plan:
      • how you will inform the wider community or industry about the project to share the experience gained and to encourage and assist others in implementing similar projects
   6. evidence demonstrating that any necessary local, state or national approvals have been obtained or are likely to be received before the proposed project timeline begins.
2. A project budget, outlining:
   1. allocation of grant funding to eligible expenditure (ineligible expenditure is outlined in Section 7)
   2. allocation of cash co-contribution of at least 30 per cent (30%) of the grant funding amount.

Project plan and budget templates are available for download from our website (recfit.tas.gov.au/business-innovation), or you can use your own. These should address all the sections outlined above.

Applications will not be accepted after the program closes.

This program is administered by the Climate Change Office in Renewables, Climate and Future Industries Tasmania (ReCFIT), Department of State Growth, on behalf of the Crown in the Right of Tasmania.

For queries about this program, contact:

• Climate Change Office, Renewables, Climate and Future Industries Tasmania (ReCFIT)
• Email: climatechange@recfit.tas.gov.au
• Phone: (03) 6166 4466

1. Prepare: Carefully read the guidelines and any frequently asked questions before you start an application. Prepare the supporting information required in Section 3 and Section 9.
2. Start: Begin your application online via the SmartyGrants website at: stategrowthtas.smartygrants.com.au/business-innovation
3. Complete: Ensure you complete each question to the best of your ability. You can save your progress and return to the application at any time. This is a competitive process. Meeting the eligibility criteria does not automatically guarantee you will be awarded a grant.
4. Review: You cannot change your application once it has been submitted. Before submitting, you should review your answers and ensure that all supporting documentation is accurate and attached correctly.
5. Submit: Once you have submitted your application via SmartyGrants, you will receive an automatic receipt by email. This receipt will include details of the application and a unique application ID.
6. Assessment: Applications will be assessed by an assessment panel. Before being submitted to the assessment panel, the information you supply may be subject to authenticity checks using third‑party software.
7. Notification: Once the assessment panel has assessed all applications, you will be advised of the outcome of your application.

SmartyGrants platform

Applications should be submitted using the online SmartyGrants platform. For assistance using SmartyGrants, please see the applicant help guide

Contact us to discuss any issue preventing you from submitting your application using SmartyGrants. If you do not have internet access, please contact us to discuss alternative ways to apply.

Confirmation email

When you submit your application, you should receive a confirmation email. Please keep the email as confirmation that your application has been submitted.

If you don’t receive a confirmation email within 24 hours, please contact the Climate Change Office by email: climatechange@recfit.tas.gov.au or phone: 03 6166 4466.

If your application is successful, you must enter into a funding agreement with the Department of State Growth to receive a grant.

The funding agreement and these program guidelines provide the grant terms and conditions.

The funding agreement will specify reporting requirements and conditions for acknowledging this grant program as a funding source.

You will not receive payment until the funding agreement is finalised.

If your application is unsuccessful, you may appeal the decision.

The appeals process ensures that all applicants have been treated fairly.

We will consider appeals that relate to administrative process issues in grants management.

All appeal requests must be in writing and addressed to the Director of Climate Change. Your request must be received within 28 days from the date State Growth notified you of the decision about your application.

For further information about the appeal process, contact climatechange@recfit.tas.gov.au

Once you have met the payment terms and conditions in your funding agreement, you will be asked to issue a valid tax invoice for the total approved grant amount.

Invoices should be addressed to:

Department of State Growth
GPO BOX 536
HOBART   TAS   7001
ABN: 36 388 980 563

You will be required to return some or all the funds if:

• you do not complete the activities required under the funding agreement;
• you do not use any or all of the funding provided;
• your situation changes in a way that prevents completion of the grant; or
• we find that the information provided to us is false or misleading.

The Australian Taxation Office (ATO) may treat grants distributed under this program as income.

We strongly recommend that you seek independent advice from a tax advisor, financial advisor, and/or the ATO about the possible tax implications of receiving the grant before applying.

Grants distributed under this program attract Goods and Services Tax (GST).

You must supply State Growth with a valid tax invoice.

Information on invoices can be found on our Business Tasmania website: www.business.tas.gov.au/manage_a_business/invoices

If your application is successful, you must report on the status of your project as detailed in your funding agreement.

You will also need to provide an acquittal after your project is completed. An acquittal is a statement confirming the grant was completed per the funding agreement.

17.1. How to acquit your grant

We will send you an acquittal form using SmartyGrants.

Your acquittal must include a Final Report that includes:

• the activities completed and their outcomes
• the income and expenditure
• evidence such as invoices, receipts, and images.

We may ask you to provide a Statement of Expenditure certified by an independent, professional auditor. You will be responsible for the cost of obtaining the certified Statement of Expenditure.

17.2. Failure to complete an acquittal

If you do not satisfactorily acquit your grant by the due date:

• you may be required to return the funding to State Growth
• you may be ineligible for other grants from State Growth.

Contact us to discuss any issue preventing you from acquitting your grant.

State Growth is accountable for spending of public funds, including grant provisions. As part of the accountability process, State Growth may publicise, without further notice, information about the grants provided, including the level of financial assistance, the recipient's identity, and the purpose of the financial assistance.

If you have received a grant from State Growth:

• despite any confidentiality or intellectual property right subsisting in the grant funding agreement or deed, a party may publish all or any part of the grant funding agreement or deed without reference to another party, and you consent to the disclosure of your name in this context.
• all obligations under the Personal Information Protection Act 2004 (Tas) still apply.

The Climate Change Office would like to share stories of this program on our website and social media. At the end of your project, we will ask you to provide a maximum 500-word summary detailing your successes, learnings and overall outcomes. You may also like to include photos, so please ensure you have permission to publish these.

You must take care to provide true and accurate information. Any information found to be false or misleading may result in action being taken, and grant funds if already provided, may be required to be repaid to State Growth.

Information provided to State Growth may be subject to disclosure in accordance with the Right to Information Act 2009.

Personal information will be managed in accordance with the Personal Information Protection Act 2004. This information may be accessed by the individual to whom it relates, on request, to State Growth.

State Growth may use and disclose the information you provide for the purposes of discharging its functions under the program guidelines and otherwise for the purposes of the program and related uses. State Growth may also use the information received in applications and during the delivery of the project for reporting purposes.

Although care has been taken in preparing this document, no warranty, express or implied, is given by the Crown in Right of Tasmania as to the accuracy or completeness of the information it contains.

The Crown in Right of Tasmania accepts no responsibility for any loss or damage that may arise from anything contained in or omitted from or that may arise from the use of this document, and any person relying on this document and the information it contains does so at their own risk absolutely.

The Crown in Right of Tasmania does not accept liability or responsibility for any loss incurred by an applicant that is in any way related to the program.