R&D Update: The Modern Manufacturing Initiative

09 March 2021

Nicola Purser, Partner, Research & Development |

The Modern Manufacturing Initiative is currently open to three of the six National Priority Sectors. The remaining sectors are set for release in the coming weeks. Applications for each sector will be open for four weeks from the date of release.

The six National Priority Sectors are:

  • Space - Closed
  • Medical Products - Currently open. Applications close at 5pm AEDT, 29 March 2021
  • Resources Technology and Critical Minerals Processing - Currently open.  Applications close at 5pm AEDT, 1 April 2021
  • Food & Beverage - Currently open. Applications close at 5pm AEST, 27 April
  • Recycling and Clean Energy
  • Defence.

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.

How to apply

Applications must be submitted through the Government's online customer portal.


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