Already started? Read this before you apply for a grant.

The short answer: usually not for the work or costs you've already done. Many Australian grant programs only fund project activity that starts after your application is approved or your grant agreement is signed. You may still be able to apply for a separate part of the project that hasn't started, but only if the guidelines allow it. Check the timing rules before you sign, order or pay for anything.

It's a frustrating moment: you find the perfect grant, and you've already put down a deposit on the equipment it would have paid for. You're not alone, and it isn't always the end of the road. Here's how timing rules work and what you can do.

1. Why timing matters to funders

A grant pays for a defined project, and funders want to approve that project before money is spent on it. Many guidelines say so plainly. The federal Industry Growth Program guidelines, for example, state: "You must not commence your grant project until you execute a grant agreement with the Commonwealth."

The same guidelines say the department is not responsible for any expenditure you incur until the agreement is executed. In practice, anything you spend before then is usually at your own cost.

2. What counts as "started"

This is where people get caught. "Started" often means more than turning up on site. Depending on the wording, it can include:

• signing a contract or accepting a quote
• paying a deposit or placing an order
• beginning building, installation or fit-out work
• hiring someone specifically for the project
• delivering the event, program or service you want funded

Read the exact words in your guidelines. Look for phrases like "commence", "incur" and "commit". A rule about costs committed before a date can catch a signed order even if you haven't paid yet. Getting quotes, on the other hand, usually doesn't count as starting, so you can collect them while you prepare.

3. The dates to look for in the guidelines

Most programs have several dates, and it matters which one the timing rule refers to:

• Application date: when you submit.
• Approval or notification date: when the funder tells you you're successful.
• Agreement date: when the grant agreement is executed. In the Industry Growth Program, "execute" means both you and the Commonwealth have accepted the agreement.
• Project start and end dates: the period your eligible costs must fall within.

Some programs let you start earlier, for example from the date you apply, usually on the understanding that you carry the risk if you're unsuccessful. Only rely on that if your guidelines say it clearly. If they don't, assume the later date applies. Our grant terminology guide explains funding agreements in more detail.

4. If you've already started

Take a breath. You still have options:

• Check the exact rule. Find the section on project start dates and eligible expenditure. The rule may be about costs, not the whole project, or it may allow costs from the application date.
• Look for a genuine next stage. If your project has a separate stage that hasn't started, such as a second piece of equipment or the next phase of a program, that stage may be fundable on its own. It has to be a real, separate stage, described honestly.
• Leave out what's done. Costs you've already paid generally stay out of the grant budget. Don't assume they can count as your contribution either. Check whether the guidelines allow it.
• Ask the program contact. Explain what's happened and ask whether the remaining work could be eligible. Write down the answer, who gave it and the date.
• Consider another round or program. If this one won't work, the next stage of your business or project might suit a future round.

Whatever you decide, be accurate about timing in your application. Applications usually include a declaration that the information is true and correct, and funders can check dates on invoices and contracts.

GrantAlly checks timing rules like "Project has not already started" against what you tell it, and keeps any rule it can't settle open for you to confirm, before anything is written. See how the eligibility check works.

5. If you haven't started yet

Good news: a few habits will protect your eligibility.

• Don't sign, order or pay a deposit until you've read the timing rules.
• Collect quotes, and ask suppliers how long their prices are valid.
• Note the date the guidelines use: approval, agreement or something else.
• Plan your timeline around how long assessment might take, as well as the closing date.
• Tell suppliers and partners that the project depends on funding, so nobody starts early by mistake.
• Keep dated records of quotes, approvals and agreements.

6. Is it worth waiting?

Waiting for an outcome can take time, and sometimes the project can't wait. That's a business decision, and only you can make it. A few questions can help:

• How much is the grant likely to be worth to this project, after your own contribution?
• What does a delay cost you, in lost sales, higher prices or missed deadlines?
• If you're unsuccessful, can you still afford to do the project?
• Is there a later stage you could fund through a grant instead?

If going ahead now is the right call, that's a valid choice. Go in knowing that the costs you incur are likely to stay with you. For help working out which costs a grant would cover, read what are eligible costs in a grant?

Frequently asked questions

Can I get a grant for equipment I've already bought?

Usually not. Many programs only fund costs incurred after approval or after the grant agreement is signed. Check the guidelines for the start date that applies to eligible costs.

Does getting a quote count as starting my project?

Usually not. Getting quotes is normally part of preparing your application. Signing a quote, placing an order or paying a deposit can count, depending on the wording of the guidelines.

Can I start my project after I apply but before I hear back?

Only if the guidelines allow it. Some programs let you start from the application date at your own risk. Many require you to wait until the grant agreement is executed.

What if I started a small part of the project already?

Check whether the rule applies to the whole project or only to costs. Leave out anything already done, describe the timing honestly, and ask the program contact whether the remaining work could be eligible.