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Manufacturing Modernisation Fund Round 1

The $50 million Manufacturing Modernisation Fund supports transformation in small and medium manufacturing businesses. It provides co-funded grants to upgrade manufacturing processes and grow highly skilled workforces.
This grant is currently closed to applications

What do you get?

Co-funding grants of between $50,000 and $1 million.

Who is this for?

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


The $50 million Manufacturing Modernisation Fund supports manufacturers by co-funding capital investments and associated reskilling to:

  • modernise
  • adopt new technologies
  • become more productive
  • create more jobs

The program aims to support SMEs through:

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

The program will run over 3 years and will be delivered through 2 streams of funding.

The first:

  • is for small scale technology and efficiency investments
  • has an estimated $20 million available for funding
  • provides grants of between $50,000 to $100,000
  • will cover up to 50% of eligible project costs

The other:

  • supports transformative investments in technologies and processes
  • has an estimated $30 million available for funding
  • provides larger grants between $100,000 to $1 million
  • will cover up to 25% of eligible project costs

The maximum grant period is 2 years.


What are the eligibility criteria?

To be eligible you must:

  • be an entity incorporated in Australia
  • be a manufacturing SME, with up to 199 employees (headcount)
  • clearly identify the level of job creation expected

You must also engage in trading activities that either:

  • form a significant proportion of your overall activities
  • are a substantial and not peripheral activity of your corporation

You must 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.

Modernisation can include:

  • technology upgrades
  • efficiency upgrades such as energy or process optimisation
  • transformative changes to your business, which will allow you to produce new products or diversify into new markets

To be competitive you must score highly against all of the following merit criteria:

  • Merit criterion 1: The extent that your project will improve your manufacturing competitiveness and lead to job growth (40 points).
  • Merit criterion 2: Capacity, capability and resources to deliver the project (40 points).
  • Merit criterion 3: Impact of the grant funding on your project (20 points).

For more information on merit criteria please refer to the Grant opportunity guidelines.


How do you apply?

The Manufacturing Modernisation Fund is currently closed to applications.

We assess your application against the eligibility criteria and then against the merit criteria. Only eligible applications will proceed to the merit assessment stage.

An assessment committee will assess your application against the merit criteria and compare it to other eligible applications. It will recommend which to the program delegate which projects to fund, subject to availability of grant funds.

You must supply enough detail and supporting evidence for your application. It should be relative to the project size, complexity and grant amount requested. You should define, quantify and provide evidence to support your answers.

If your application is successful, you’ll receive a written offer.

You’ll then enter into a grant agreement with the Commonwealth.

The grant agreement will specify:

  • reporting requirements
  • the payment schedule
  • milestones necessary to receive payments

We will make payments according to an agreed schedule set out in your grant agreement. Payments are subject to satisfactory progress on the project.

Payments will be made by direct credit into your nominated bank account.

If you are unsuccessful, we’ll notify you in writing and give you the chance to discuss the outcome with us.

Need help?

Let us answer your question via phone, email or live chat. And if we can't help, we'll put you in touch with someone who can.

  • Phone:
  • Open Hours:
    Monday – Friday, 8am – 8pm across Australia
  • Website:

Information sessions

Information sessions were offered to assist you to understand what support/assistance is available under the Manufacturing Modernisation Fund.

Key documents

Grant opportunity guidelines

pdf · 0.54 MB docx · 0.48 MB

Sample grant agreement – Simple

pdf · 0.47 MB docx · 0.14 MB

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