The ACCC is warning small business operators and entrepreneurs to beware of unauthorised websites that claim to provide easy access to government grants. Despite appearances, many organisations are not providing any real assistance to small businesses. Many charge a fee to access government grants which can normally be accessed for free. In other cases, the small business may pay the fee only to find they are not eligible for a particular grant.
The ACCC is also concerned that some overseas-based websites falsely give the impression that they are endorsed by the Australian Government. Official sounding names and web addresses are often used to draw unsuspecting people to questionable websites.
The Australian Business Funding Centre (ABFC): www.australiangovernmentgrants.org is an example of a website which appears to have some kind of Australian Government affiliation or official status. The ABFC and other websites present educational material about government grant programs and, in some cases, videos or news releases showcasing successful grant recipients in a manner which suggests that the website is a service provided or endorsed by the Australian Government. A closer inspection of such websites may reveal disclaimers acknowledging no affiliation with the government. In the ABFC case, it also has disclaimers which reveal that the ABFC had no part in the success of most, if not all of the grant recipient stories it has published on the website. These disclaimers are often overlooked by an unweary audience.
To protect your business, make sure you keep these points in mind:
The government doesn't cold call you to tell you about grants
The government doesn't accept payment via wire transfer
All Australian Government websites use the '.gov.au' extension
All decisions about grants are based on merit – you can't pay for special access
Where you may wish to use the services of a third party to assist in preparing grant applications, choose a reputable service by doing your homework first
If you have signed up to a questionable service and have paid by credit card discuss your recovery options with your financial provider.
The ACCC has recently reported an increase in scams impersonating government departments or major businesses. For more information about protecting your small business or to report a scam, visit www.scamwatch.gov.au or call 1300 795 995.
