Manufacturing Grants
The manufacturing industry is one of the largest contributors to the growth of the Australian economy. Grants in the manufacturing sector are basically assistance programs offered by the Federal and State government to promote and support the growth of local manufacturing industry. However, most of the grants in this sector are provided by individual states to develop their local manufacturing businesses.
Studies reveal that only 5% of manufacturing businesses have utilised manufacturing grants, support systems and assistance programs offered by the Australian government. With little to no awareness about the availability of these assistance programs, it is no surprise that many manufacturers are not taking full advantage of industry grants that are aimed at helping them. In this section, we will discuss some of the grants available in the manufacturing industry and their eligibility criteria.
Certain State governments grants provide small to medium businesses with a funding of $500,000 to $2.5 million to cover up to one-third of the production costs involving projects that have the capability to expand their advanced manufacturing activities. To be able to apply for this grant, a business must:
- be an SME having 199 full-time employees or equivalent
- be incorporated in Australia
- have an ABN
- incur a minimum $1.5 million in projects costs
This grant is fundamentally aimed at supporting advanced technologies, engineering excellence and innovative products.
Grants for Manufacturing sector
There are certain states that provide SMEs in the manufacturing sector with funds up to $15,000 to implement projects that are capable of increasing their efficiency and competitiveness. To be eligible, businesses must:
- have an ABN
- must operate in the state providing the grant
- have a turnover between $300,000 – $20 million
- be able to finance half of the project’s total cost
- not be a consultant
- not have any legal or bankruptcy issues
Some other states provide local manufacturing businesses with a matching fund of up to $120,000 to help them become energy efficient and improve the quality of their manufacturing process. To be able to apply for this grant, businesses must:
- have an ABN
- be located in the state providing the grant
- be registered for GST
The main aim of this grant is to support businesses that are looking for innovative ways to save energy by using energy-efficient equipment, conducting energy audits and at the same time being more productive. For this grant, funds are divided into three offers
- offer 1 – Process optimisation (matched funding up to $50,000)
- offer 2a – installing or upgrading energy-efficient equipment (matched funding up to $30,000)
- offer 2b – Complex projects intended towards improving the energy efficiency of the plant (matched funding up to $70,000)
Applicants may apply for, Offer 1 and for any of the 2a and 2b for a matching fund of up to $120,000.
When addressing the availability of manufacturing grants, it has become evident there are over 150 different government schemes and grant programs aimed specifically at helping manufacturing businesses in Australia.
To obtain further information on any of these assistance programs, speak to our advisors on 1300-005-999 and they will be able to help you.
