Australia’s biggest technology and innovation hub, Tech Central, has recently offered to subsidise eligible technology companies’ rental and fit-out costs. 

Here’s what you need to know…

About the rebate

Eligible start-ups and scale-ups demonstrating 300sqm + of growth may receive rebates for three years, up to a total amount of $1,940,000, inclusive of:

• A 40% rebate on rental costs (capped at $600,000 p.a. in the first two years, and up to $300,000 in the third year)
• A 30% rebate on eligible fit-out costs up to $440,000

The program forms part of the state government’s plans to deliver up to 25,000 sqm of affordable space for technology startups and scaleups, attract new businesses to the area and generate jobs.

Eligibility criteria

There are a few things to consider when it comes to eligibility, including location, projected growth, and business structure.

At a minimum, your business must:

• Be located 500m from 2 Lee St, Haymarket. You can check whether your address falls in the target area here
• Be a startup or scaleup established within (or locating to) the defined catchment area 
• Develop and commercialise new technology as a core product offering or service
• Employ at least ten full-time (or equivalent) staff in NSW
• Be able to show an average annual growth of 20% in either revenue or the number of employees over the past two years.

For full eligibility criteria, take a look at the program guidelines.

Can businesses already located in the area apply?

Yes, you can apply if you’re an established business in the catchment area. But you must meet the eligibility criteria and demonstrate that you plan to increase your total leased space by an additional 300+ sqm over the next three years.

Note: You cannot combine multiple leasing agreements to meet the threshold.

What if I’m about to move into the precinct?

If you’re about to commence a new lease in the area, you are also able to apply. But you'll need to meet the eligibility criteria and must be able to show that you’ll occupy 300+ sqm within the eligible catchment for a minimum three-year term.

Can larger tenants access the subsidy?

Yes, as long as they meet the eligibility criteria.

Get in touch with Tenant CS

Investment NSW has allocated a maximum of $11 million over two years and will assess eligible applications as they're received. That means it could take only a few companies setting up large or highly technical spaces to eat up the funds.

What’s more, with limited commercial buildings in the catchment area and a total Fringe vacancy rate of circa 6.5%, available space is scarce and will be snapped up quickly. (You can read more about the current market conditions here.)

So, if you’re considering moving to the Fringe and want to know more about this Tech grant, get in touch with one of our Sydney Consultants today! We’ll be able to help you source the perfect office space for your business needs and negotiate the best possible lease terms on your behalf.