Manufacturing Modernisation Fund

This program seeks to support manufacturers to modernise, adopt new technologies, become more productive and create more jobs by co-funding capital investments and associated reskilling.

The objectives of the program are to:
- Support investment in efficient and transformative manufacturing processes by small and medium sized enterprises (SMEs).
- Support jobs growth and a more highly skilled workforce in the manufacturing sector.

There are two streams of funding available:
1. Small grants
- To support technology and efficiency improvements.
- Grants between $50,000 and $100,000, up 50% of eligible project costs, are available.
- An estimated funding pool of $20 million is available.

2. Large grants
- To support transformative investments in technologies and processes.
- Grants between $100,000 and $1 million, up 25% of eligible project costs, are available.
- An estimated funding pool of $30 million is available.

Applicants may submit one application under each of the two funding streams, however only one application can receive grant funding. If both applications are successful, applicants will be required to elect which project to progress to a grant agreement.

A total funding pool of $50 million is available over three years from 2019-20 to 2021-22.

Eligible applicants must:
- Be an entity incorporated in Australia and a trading corporation, where their trading activities:
a) Form a sufficiently significant proportion of the corporation’s overall activities as to merit it being described as a trading corporation.
b) Are a substantial and not merely peripheral activity of the corporation.
- Be a manufacturing small and medium-sized enterprises (SMEs) with up to 199 employees (headcount).
- Clearly identify the level of job creation expected.
- Provide evidence from their board that the project is supported and they can complete the project and meet the costs of the project not covered by grant funding.

Eligible activities may include:
- Buying, constructing, installing or commissioning of manufacturing plant, equipment or software.
- Relevant training and skills development to assist them to integrate the new technology into their business, including upskilling and accreditation in advanced processes.
- Process design and engineering directly related to their capital investment.
- Fit-out, alterations and/or extensions to buildings directly related to their capital investment.

Please refer to the Guidelines for the list of eligible expenditure.

The main assessment criteria include:
- The extent that their project will improve their manufacturing competitiveness and lead to job growth. (40 points)
- Capacity, capability and resources to deliver the project. (40 points)
- Impact of the grant funding on their project. (20 points)