Funding for Defence businesses who are developing new products and manufacturing processes

Your projects needs to show how it aligns to the objects of the program. The objectives are to:

• increase trade and participation of Australian manufacturers and businesses in local and global value chains and markets
• encourage manufacturers to adopt new technologies to support entry into new markets with innovative solutions to build scale and capability
• support Australian manufacturers to overcome barriers that are preventing them from identifying and accessing new value chains (as outlined in the Defence National Manufacturing Priority road map)
• create new jobs in the manufacturing sector, by integrating into new local and global value chains  
• support Australian manufacturers to pivot to high value-added activities
• identify opportunities for Australian manufacturing businesses, particularly in the National Manufacturing Priorities, to connect and network with local and global customers
• increase investment in Australian manufacturing, targeting the National Manufacturing Priorities
• increase Australian exports through greater participation in global value chains, contributing to Gross Domestic Product 
• grow and support manufacturing networks and ecosystems and increase collaboration.

Projects under the Manufacturing Integration Stream can include activities to develop and deliver quality products and high value services into global value chains and international markets, boosting confidence and competitiveness in the Australian manufacturing sector. 

Meritorious projects

We anticipate the most meritorious projects in this stream will advance the business’ position and market presence to enter, expand and operate in new and existing local and global value chains, and secure new customers. This could be supported by:  

• diversifying offerings into high value add services that complement production
• adopting new and novel technology, processes and solutions
• increasing management capability, expertise and business acumen
• collaborating with other businesses to transfer knowledge and scale up industry capabilities to meet international standards.

The Modern Manufacturing Initiative is a key element of the Australian Government’s Modern Manufacturing Strategy, which aims to help Australian manufacturers scale-up, compete internationally and create jobs.

Learn more about the Modern Manufacturing Strategy.

If you submitted an application for the Manufacturing Translation or Integration Streams through Round 1 and intend to apply for Round 2, you should review the new Grant Opportunity Guidelines as we've made some changes. These include further information on:

• the primary objective of each stream
• what the key elements of a meritorious project are, such as showing considerable advancement in the maturity level of ideas or products according to the Technology Readiness Level scale or advancing your position and market presence in new and existing local and global value chains
• how to address each Assessment Criterion, and in particular the need to show the additional activities the grant would allow you to undertake, and the spill over benefits of your project under Assessment Criterion 3.

We know many businesses have concerns about the impact of COVID-19 on grant applications and grant management. When applying for a grant, consider timeframes and constraints that may impact grant activities due to COVID-19.

If COVID-19 has impacted your ability to meet the obligations of your grant agreement, to discuss your circumstances and how we can assist you, you should contact:

• your customer service manager
• an agent at our Contact Centre.

You can find further COVID-19 government financial assistance and support for Australian businesses on our coronavirus information and support for business page.

First we check that you meet the eligibility criteria. Then we assess your application against the assessment criteria.

The assessment criteria are a set of rules that describe how we must assess each application.

We give each criterion a certain number of points.

In deciding which projects to fund, the Minister will consider the assessment committee scoring, how your application compares to other applications, whether it provides value with relevant money, and the advice of Industry Innovation Science Australia.

• Assessment criterion 1: Alignment with program objectives (50 points)
• Assessment criterion 2: Capacity, capability and resources to deliver the project (25 points)
• Assessment criterion 3: Impact of the grant funding on your project (25 points)

The amount of detail and supporting evidence you provide should be relative to the project size, complexity and grant amount requested.

The Minister will make the final decision.

If your application is successful, you’ll receive a written offer. If you are unsuccessful, we’ll notify you in writing and give you the chance to discuss the outcome with us.

Successful applicants must enter into a grant agreement with the Commonwealth. The grant agreement will specify the reporting requirements, payment schedule and milestones necessary to receive payments. We use the template grant agreements from Department of Finance.

We’ll make the first payment when the grant agreement is executed. We’ll make subsequent payments after we have received and accepted the required report. 

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