Manufacturing Modernisation Fund Round 2


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. $50 million will be available for this grant opportunity from 2020-21 to 2022-23

Application dates

Opening and closing dates and times will be published in the coming weeks.

What do you get?

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

Who is this for?

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

Overview


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.

Round 2 will run over 3 years (2020-21 to 2022-23) and supports 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.

Eligibility


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.

For more information on eligibility please read the Grant opportunity guidelines.

Applying


How do you apply?

You should read the grant opportunity guidelines and sample grant agreement before you apply.

When the grant is available, you must submit your application through the online portal. You’ll need to set up an account when you first log into the portal. The portal allows you to apply for and manage a grant or service in a secure online environment.

Please note, the Evidence of support from your Board and Accountant Declaration (mandatory attachments to your application) must be submitted using the templates available under Key documents on this page.

Need help?

  • Contact us for help with your application or to find out more.

  • Monday – Friday, 8am – 8pm across Australia

Key documents


Grant opportunity guidelines

Sample grant agreement

Sample application form

Board CEO letter template

Accountants declaration template