Manufacturing Modernisation Fund Round Two – Funding for manufacturers to modernise and reskill

Applications are now open for Round 2 of the Manufacturing Modernisation Fund, which provides co-funding grants of between $100,000 and $1 million to small to medium manufacturing enterprises with up to 199 employees.

The grant 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

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.

Applications are open until 5pm (AEDT) 21 January 2021.

You can view a webinar covering the program and the application process here