In 2019, the Commonwealth Government announced the launch of the Manufacturing Modernisation Fund (MMF). The focus of the Fund is on providing grants to companies seeking to modernise their operations by investing in transformative technologies.
The $50M Fund will run over 3 years. It will support manufacturers to modernise, adopt new technologies, become more productive and create more jobs by co-funding capital investments and associated reskilling.
This can include technology upgrades, efficiency upgrades, such as energy or process optimisation, or more transformative changes which will allow businesses to produce new products or diversify into new markets.
The MMF is currently closed with the initial recipients announced in April 2020.
To support investment in efficient and transformative manufacturing processes by small and medium sized enterprises (SMEs)
To support jobs growth and a more highly skilled workforce in the manufacturing sector.
The intended outcomes of the program are to support:
Investment in efficient and transformative manufacturing processes by SMEs
Jobs growth and a more highly skilled workforce in the manufacturing sector
Two streams of Grants are available with different levels of matched funding:
Small Scale Investments
Up to 50%
For new technology and efficiencies improvements.
Large-Scale Transformative Investments
Up to $1m
Up to 25%
Transformative investments in new technology such as 3D printing, robotics, automation, advanced materials, AI and machine learning.
The MMF will open to businesses which:
Are incorporated in Australia
Are from manufacturing SMEs with up to 199 employees (headcount)
Can clearly identify the level of job creation expected from the project
The project must involve capital investment and associated skill-based training to modernise manufacturing processes. Eligible activities may include:
Buying, constructing, installing or commissioning of manufacturing plant, equipment or software
Relevant training and skills development to assist with integrating the new technology into the business, including upskilling and accreditation in advanced processes
Process design and engineering directly related to the capital investment
Fit-out, alterations and/or extensions to buildings directly related to the capital investment
Projects must be completed within 2 years of obtaining the grant funding.
Improved manufacturing competitiveness and lead to job growth
Capacity, capability and resources to deliver the project
Impact of the grant funding on the project
Plant and Equipment Expenditure
Costs of acquiring, designing, engineering, automating, digitising or construction of, plant and equipment, as well as any related commissioning costs as eligible expenditure
Direct labour costs of employees employed on the core elements of the project
The cost of any agreed project activities contracted to others
Other Eligible Expenditure
Staff training and skills development
Commissioning and building modifications
Financial auditing of project expenditure
Costs to obtain planning, environmental or other regulatory approvals
Business diagnostics services (limited to 10% of the eligible project costs)
Contingency costs (limited to 10% of the eligible project costs)
Contact Matthews Steer today on 03 9325 6300 to learn more about your eligibility for government business grants, and how our Grants Team can help support your applications.