Blog | Grants

Overview

Funding for manufacturers to modernise and reskill

Round 2 of the Manufacturing Modernisation Fund supports transformation in small and medium manufacturing businesses. It provides co-funded grants to transform manufacturing and to support job growth and a more highly skilled workforce.

The first round in 2019 saw the government invest $48.3 million that supported about 200 projects valued at more than $215 million which are expected to create about 2600 jobs.

The second round closed in January 2021 and announcements are expected in may 2021.

 

Outline

Round 2 of the Manufacturing Modernisation Fund supports manufacturers by co-funding capital investments and associated reskilling to:

  • adopt new technologies
  • encourage innovation
  • become more productive and competitive in the market and
  • create more jobs

The program aims to support SMEs through:

  • investment in transformative manufacturing technology and processes
  • jobs growth and a more highly skilled workforce in the manufacturing sector

 

Level of support

Co-funding grants of between $100,000 and $1 million, up to 25 per cent of eligible project expenditure

 

Eligible activities

Round 2 will run over 3 years (2020-21 to 2022-23) and provide around $50 million to support transformative investments in technologies and processes including:

  • buying, constructing, installing or commissioning of manufacturing plant and equipment
  • integrating production-related software that is directly related to your capital investment
  • relevant training and skills development to assist you to integrate the new technology into your business, including upskilling and accreditation in advanced processes.
  • process design and engineering directly related to your capital investment
  • fit-out, alterations and/or extensions to buildings directly related to your capital investment

The maximum project period is 2 years

 

Eligible small business applicants

Small to medium manufacturing enterprises (SMEs) with up to 199 employees

To be eligible you must:

  • have an Australian Business Number (ABN)
  • be non-tax exempt
  • be registered for the Goods and Services Tax (GST)

and be:

  • an entity incorporated in Australia, including start-ups, and a trading corporation where your trading activities:
    • form a sufficiently significant proportion of your overall activities as to merit it being described as a trading corporation; or
    • are a substantial and not merely peripheral activity of your corporation

You must also be:

  • a manufacturing small and medium-sized Australian enterprise (SME) with up to 199 employees (headcount)
  • have a minimum of $400,000 in eligible project expenditure
  • able to identify the level of Australian job creation expected from your project
  • able to demonstrate your project aligns with one or more of the six National Manufacturing Priorities:
    • resources technology and critical minerals processing
    • food and beverage
    • medical products
    • recycling and clean energy
    • defence
    • space

You must also be able to provide evidence that:

  • the project is supported by your board
  • you can complete the project
  • you can meet the costs of the project not covered by grant funding

 

Important dates

Closes 21 Jan 2021 05:00 PM AEDT.

 

How to apply

You should download and read the grant opportunity guidelines and sample grant agreement

Applications will be accepted via the business.gov.au online portal

 

Getting help

Dowling Consultancy welcomes enquiries from small businesses requiring professional grant application and submission guidance to enhance their chances of success. We have assisted numerous businesses with grant applications since 2013 and achieved approximately $10 million in awarded win government grants for numerous projects

Contact Steve Dowling on 0409 478 850 for a confidential, no obligation eligibility assessment discussion

Dowling Consultancy’s team can assist in project scoping, writing comprehensive and congruent applications, and liaising with program managers to maximise your chance of funding success

We assisted 5 businesses in receiving grant support from round 1 and we know our way around navigating the application process

 

Learn more