R&D Update: The Modern Manufacturing Initiative

As the Australian Government’s $1.3 billion flagship program underpinning the Modern Manufacturing Strategy, the Initiative will deliver co-funding for large manufacturing projects with broad sector benefits across the six National Manufacturing Priorities.

Stream 1: Manufacturing translation

Goal: To help Australian manufacturers translate high-quality research and ideas into commercial outcomes and support businesses to scale-up and become more competitive and resilient.

Funding: For the adoption of new technologies and development of new processes and innovative solutions to build scale and capability.

Stream 2: Manufacturing integration

Goal: To help Australian manufacturers access domestic and international value chains, propelling their goods and services into new markets and fostering Australia’s reputation as a modern manufacturing leader.

Funding: By the acquisition of new machinery to meet specific standards/quality specifications for exporting products into an international supply chain.

Both Streams will provide co-funding of up to 50% of eligible project expenditure, with a minimum grant amount of $1 million and a maximum of $20 million provided.

Eligibility criteria

  • Have an Australian Business Number
  • Be non-tax exempt
  • Be registered for GST
  • Be an incorporated entity, where trading activities form a sufficiently significant proportion of the entity’s overall activities and are substantial and not merely a peripheral activity of the entity.

In addition, you must also:

  • Demonstrate your project aligns with one of the National Manufacturing Priorities
  • Have a minimum of $2 million in eligible project expenditure
  • Provide evidence your project is supported by your board (or CEO)
  • Provide evidence you can meet project costs not covered by the grant funding.

To discuss the Modern Manufacturing Initiative in more detail or if you require help with your application, please contact your local BDO adviser.