Government Incentives & R&D Proposals: Reflections from our BWA Roundtable in Western Sydney

By Monica Lei, Director at BDO Australia, Melissa Fardone, Partner – R&D at BDO Australia, and Brenda Chau, Director – R&D & Indirect Tax at BDO Australia

Government grants and R&D incentives can help businesses innovate, grow and build new capabilities. Yet, as participants at the recent BWA Western Sydney Roundtable discussed, securing government support takes more than a good idea.

A government proposal is fundamentally different from a commercial pitch. Success requires applicants to understand the policy behind the funding, demonstrate public value and present credible evidence that the organisation can deliver.

Start with the policy

Every grant program is created to achieve a government objective—whether stimulating regional growth, creating employment, strengthening capability, accelerating innovation or addressing a social or environmental challenge.

The guidelines are therefore more than eligibility criteria. They reveal what the government wants its investment to accomplish.

Before applying, ask:

Researching departmental strategies, ministerial announcements, previous recipients and emerging policy priorities can help connect a genuine business opportunity to the intended purpose of the funding.

Relationships can illuminate the process

Government funding can feel like a “black box”, particularly when agency administrators are unable to confirm whether a business or project will qualify.

Industry associations, specialist advisors, relevant agencies and previous grant recipients may provide useful insight into a program’s intent and expectations. Building these relationships before funding is needed can also help businesses understand emerging priorities and identify future opportunities.

However, leaders should weigh the time and cost of an application against the likelihood of success. A proposal sitting within a significant grey area may require considerable effort while remaining difficult for assessors to support.

Demonstrate value and reduce risk

Meeting the eligibility criteria does not guarantee success. Competitive applications must explain why the project represents a worthwhile use of public funds.

Depending on the program, value may be demonstrated through employment, local procurement, productivity, carbon reduction, improved health outcomes or wider economic participation. Estimates are often necessary, but they must have a credible rationale.

Applicants should consider how to best describe the following:

Assessors are also evaluating risk. Letters of support, customer agreements, evidence of co-funding, realistic budgets, clear milestones and an experienced project team can all build confidence.

Starting with a smaller grant may help a business establish its track record. Smaller organisations can also participate as partners or specialist contractors within larger funded projects.

R&D requires genuine technical uncertainty

The Australian Government’s R&D Tax Incentive differs from a competitive grant. It operates within the taxation system and is based on self-assessment against legislative criteria.

A central consideration is whether a business is conducting eligible experimental activities to resolve a genuine technical uncertainty—something that could not be determined in advance using publicly available knowledge or standard professional practice.

R&D is not limited to laboratories or high-tech companies. Manufacturing, logistics, education, construction and other sectors may qualify when developing or testing non-obvious products, systems or processes.

The key is distinguishing genuine experimentation from routine implementation, ordinary product development, or adopting an existing solution.

AI claims face greater scrutiny

The rapid growth of AI-related R&D claims has attracted closer government scrutiny. Using an off-the-shelf AI product or completing a standard integration is unlikely, on its own, to demonstrate eligible R&D.

Businesses need to explain:

The strongest claims go beyond describing what the technology does. They document the technical uncertainty and the systematic process used to investigate it. Maintaining records of experiments, decisions, test results, and failures is therefore essential.

Choose advisors (and opportunities) carefully

Grant writing is not a regulated profession, making advisor selection challenging. Effective advisors need more than persuasive writing skills; they should understand the relevant legislation, government policy, assessment process and industry context.

Applicants should examine an advisor’s experience, compliance approach, sector knowledge, collaborative style and fee structure. Businesses with limited budgets may gain more value by engaging an expert for eligibility advice or the most complex assessment criteria rather than outsourcing the entire application.

The process must remain collaborative. The business provides the technical, operational and commercial knowledge, while the advisor helps interpret the requirements and build an evidence-based case.

Before proceeding, leaders should consider whether the organisation is clearly eligible, whether the project genuinely advances the policy objectives and whether the potential return justifies the investment of time and resources.

Sometimes the most strategic decision is not to apply—or to wait until the business has stronger evidence, partnerships or delivery capability.

Conscious leadership in practice

One of the greatest values of the Roundtable was the generosity with which participants shared their experience, questions and hard-won lessons.

Bringing diverse perspectives into the room helped replace uncertainty with practical questions, informed choices and possible pathways forward. It was conscious leadership in practice: remaining curious, listening deeply, seeking appropriate expertise and considering how business ambition can contribute to meaningful public value.

Government funding should not be viewed simply as money to be secured. At its best, it is a partnership between policy and possibility—supporting businesses to solve important problems, build new capabilities and create impact extending well beyond their own success.

About Monica Lei

Monica Lei is a Director in Business Services with BDO in Greater Western Sydney, where she has played a key role in expanding the firm’s presence across the region since joining in 2019. With more than 16 years of experience in professional services, Monica partners with medium to large-sized private businesses and foreign-owned subsidiaries to deliver strategic accounting, tax, and advisory solutions. Her expertise spans financial reporting, tax compliance, outsourced accounting, audit support, and strategic business advice for complex entities operating in growth-focused and industrial sectors.

Monica’s approach goes well beyond compliance. She is known for her client-centred, relationship-driven style, working closely with executives and finance leaders to understand their commercial realities, strengthen financial foundations, and position their organisations for sustainable growth. She combines technical precision with practical commercial insight, helping businesses improve efficiency, strengthen governance, and enhance capital readiness.

Monica’s experience includes advising inbound international businesses establishing operations in Australia, delivering end-to-end outsourced accounting services, supporting mergers and acquisitions, conducting compliance health checks, and guiding organisations through expansion, restructuring, and transformation. Leveraging BDO’s multidisciplinary expertise and her strong professional network, Monica collaborates across specialist teams to deliver holistic and pragmatic solutions.

Monica holds a Bachelor of Commerce (Accounting and Finance) and is a Certified Practicing Accountant (CPA) and Chartered Tax Adviser (CTA).

About Melissa Fardone

Melissa Fardone leads the Research & Development (R&D) and Grants team at BDO Australia in Adelaide, helping organisations turn innovative ideas into commercial success. With more than a decade of experience spanning both government and consulting, she works with businesses across a wide range of industries to develop R&D strategies, improve business processes, and secure government funding to support growth and innovation.

A passionate advocate for innovation as a driver of long-term business success, Melissa has extensive expertise in the Research and Development Tax Incentive, state and federal grants, and commercialisation pathways. Before joining BDO, she spent six years as a senior manager in a major accounting firm’s government incentives team and previously led the Adelaide grants team for AusIndustry.

Melissa has successfully guided organisations through complex R&D Tax Incentive reviews, secured government grants valued at more than $10 million, advised on intellectual property strategies for emerging technologies, and prepared large-scale overseas finding applications. She is a Registered Tax Agent (Research & Development) and holds a Bachelor of Commerce (Honours).

About Brenda Chau

Brenda is a Director in BDO’s Indirect Tax team in Sydney, assisting and advising clients in the areas of research and development (R&D) tax incentives, GST, and payroll tax.

Her clients range from small private entities to large multinationals in the mechanical and electrical engineering, product development, process development, software, manufacturing, and textiles sectors.

Brenda also has experience dealing with investigations by the government departments responsible for administering the R&D tax incentive program (i.e., AusIndustry and the ATO).

With expertise across the R&D Tax Incentive, tax compliance and advisory, payroll tax advisory and compliance, tax due diligence, and tax audits and rulings, Brenda provides practical and strategic tax support to Australian businesses.

Her experience includes guiding an Australian media company in establishing and developing robust preparation and substantiation processes for its R&D Tax Incentive claim, as well as delivering R&D Tax Incentive education workshops for an Australian real estate marketing company. She has also successfully guided businesses through reviews and audits conducted by various revenue authorities and government departments, including AusIndustry, the ATO and state revenue authorities.

Brenda holds a Bachelor of Laws and a Bachelor of Business (Accounting) and is a member of Chartered Accountants Australia and New Zealand (CA ANZ).

About Business Women Australia

Business Women Australia (BWA) is a vibrant national collective of women from all sectors, industries, and professions. With a fast-growing group of more than 20,000 followers, BWA provides access to:

BWA’s vision is to elevate women with knowledge, influence, and connection, helping members achieve their full potential both professionally and personally.

👉 Join today and be part of a national movement of women making an impact.

🔗 businesswomenaustralia.com.au/membership

With thanks

Business Women Australia extends its sincere thanks to BDO Western Sydney for generously hosting our Boardroom Lunch Roundtable discussion.

Our particular thanks go to Monica Lei, Director, Business Services at BDO, for creating such a welcoming environment for open conversation and shared learning; and to Melissa Fardone, Partner, R&D & Government Incentives, and Brenda Chu, Director, R&D & Government Incentives, for leading the discussion and generously sharing their expertise across government grants, the R&D Tax Incentive and the evolving funding landscape.

Thank you also to BWA Advisory Board Member Vicki Wu for sharing an update on the future direction of Business Women Australia, connecting and supporting women in leadership.

Most importantly, we thank every woman around the table for contributing her experiences, questions and perspectives.

See our upcoming events around the nation and online here: https://businesswomenaustralia.com.au/calendar/

This article reflects a peer discussion and provides general information only. You should seek appropriately qualified professional advice regarding individual grant applications, taxation matters and eligibility for the R&D Tax Incentive. We recommend you reach out to a professional adviser, including BDO Western Sydney (they can put you in touch with your local BDO team).