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In October 2020, the Federal Government launched the Modern Manufacturing Strategy (MMS), with a range of tactics to grow the manufacturing sector in Australia, which most commentators concur has been in decline for many years, particularly against cheaper imports from other markets such as China.

The $1.3 billion Modern Marketing Initiative (MMI) is the centrepiece of the MMS. It is designed to help manufacturers to scale up, create jobs, drive collaboration and identify new opportunities to access domestic and global value chains.
The MMI, which intends to super-charge manufacturing and grow jobs, is now open to businesses. It features two streams – Translation (translating good ideas into commercial outcomes and support businesses to scale-up and become more competitive and resilient) and Integration (helps Australian manufacturers to access domestic and international value chains, propelling their goods and services into new markets).

Target Sectors
Applicants must be within, or must align with (i.e. supply into), one of the six identified high priority manufacturing streams. These are:
1. Space
2. Medical Products
3. Resources Technology and Mineral Processing
4. Recycling and Clean Energy
5. Food & Beverage
6. Defence

Funding Available
There is a total of $140 million available for the upcoming round, which will be divided across the six streams.
These streams are targeted at companies looking to manufacture at scale, rather than startups or early-stage projects. Grants, which must be co-matched ie 50% of eligible costs, will range from $1m to $20m; the department believes the “sweet spot” will be grants around $4m, meaning projects of $8m. This is however only a guide.

Co-contribution
Grants must be co-matched – ie 50% of eligible costs will have to covered by the applicant.

Eligibility
Eligible applicants, who must be Australian entities involved in the manufacturing sector, will be confined to trading corporations. There are no specific business size requirements.
Funding will be focused on supporting businesses to scale, as indicated in the advisory advice relating to grant size above. Applicants must the financial capacity to fund the minimum cash contribution relevant to the Funding Stream that they are applying under.

Closing Date
Space – the first priority area – is now open, with Grants due to be lodged by March 22th.
Medical Products is also open, with a deadline of 29th March.
The next four areas will open up over the coming weeks.
Further information is available at business.gov.au/mmit or business.gov.au/mmii