Applications for Round 5 of the Victorian Circular Economy Recycling Modernisation Fund are now open

Applications for Round 5 of the Victorian Circular Economy Recycling Modernisation Fund opened on 10 April 2025 and will close at 11.59pm on 12 May 2025. This program is administered by Sustainability Victoria and focusses on upgrading equipment for hard to process plastics, such as e-plastics and soft plastics.

The primary aims of the fund are to:

  • Diversify and attract new investment to increase the quality of materials recovered for recycling
  • Attract reprocessing infrastructure to increase the quantity of materials re-entering manufacturing streams and improving the circularity of materials
  • Support technologies and processes that provide new or improved recycling and manufacturing solutions
  • Build the capacity, capability and resilience of Victoria’s resource recovery sector
  • Support businesses to respond to the national regulation of waste exports
  • Increase the quality of materials for manufacturing
  • Create jobs in the circular economy.

Funding details

Grants valued between $250,000 and $1,000,000 are available on a dollar-for-dollar matched funding basis per project. Greater investment from the applicant will be looked upon favourably throughout the selection process.

Projects will be co-funded by the Victorian Government’s Recycling Victoria: a new economy policy. Projects which address materials affected by the national regulation of waste exports are also eligible for co-funding by the Australian Government’s Recycling Modernisation Fund.

Program objectives 

Round 5 of the program will support projects that achieve at least one of the following objectives:

  • Increase the recovery and local reprocessing of hard-to-recycle plastics
  • Increase the capacity for domestic reprocessing and manufacturing of hard-to-recycle plastics affected by the national regulation of waste exports
  • Improve the quality of recovered hard-to-recycle plastics to increase market uptake and/or meet market specifications
  • Increase the use and market demand of recovered hard-to-recycle plastics in remanufacturing and to make new products.

In addition to the mandatory objectives above, the program also endeavours to support projects that:

  • Improve recycling outcomes by addressing critical infrastructure gaps in Australia’s waste management and resource recovery system including, where possible, addressing Australia's regional and rural waste challenges 
  • Manage hard-to-recycle plastics in line with the waste hierarchy and national regulation of waste exports
  • Create jobs in the resource recovery sector 
  • Increase other economic development opportunities such as economic performance and growth of hubs 
  • Reduce the amount and environmental impact of waste entering landfill.

Eligible projects

Your organisation’s project may qualify if it:

  • Involves the purchasing, instalment and commissioning of new equipment, or upgrading existing equipment to meet one or more of the program objectives listed above
  • Operates at an existing facility in Victoria that targets hard-to-recycle plastics
  • Aligns with Recycling Victoria: a new economy policy, and for applicable materials, the Recycling Modernisation Fund
  • Sources at least 50 per cent of the project feedstock from Victoria
  • Meets regulatory and planning requirements
  • Will be commissioned and operational by 30 April 2026.

Eligibility 

Eligible applicants include Australian businesses, social enterprises, Victorian local government organisations and other not-for-profit organisations that:

  • Have a current Australian Business Number (ABN)
  • Have been operating for a minimum of two years by the application closing date
  • Can demonstrate financial viability to undertake the project
  • Agree to comply with the in grant programs as well as the funding terms and conditions in the
  • Agree to implement recycled content traceability consistent with the National Framework for Recycled Content Traceability and register the use of the national framework with the Department of Climate Change, Energy, the Environment and Water
  • Submit their Fair Jobs Code Pre-Assessment Certificate Number with their application if applying for $500,000 or more. A Certificate must be held prior to applying for the grant.

It is also crucial to note that the following are ineligible for funding:

  • Individuals
  • Unincorporated entities
  • Organisations that do not currently operate the facility where the project will be located.

Further to the above, there are a variety of ineligible costs such as civil works, construction, purchasing of land, permit costs and routine maintenance. Please refer to Section 2.4 of the guidelines for the exhaustive list of ineligible costs before applying.

Assessment criteria 

Applicants will be assessed in line with the following criteria:

  • Description of how the project will be delivered (30 per cent)
  • Demonstrate the project meets at least one of the program objectives (30 per cent)
  • Demonstrate the applicant’s ability to deliver the project, including capability (skills) and capacity (resources), and written internal approval for the project, including approved budget and allocation of resources (20 per cent)
  • Demonstrate the need for government financial assistance, including the impacts on scope and timing if the project is not funded, and how the project addresses a priority material and job creation (20 per cent).

Application process

The application process is competitive and merit based. Multiple applications can be submitted, however, each must relate to a different project. Applications must be submitted via the SmartyGrants website by 11.59pm on 12 May 2025 and late submissions will only be accepted in exceptional circumstances.

The application form requests standard organisation information along with numerous detailed responses, including but not limited to:

  • A project summary
  • Justification for government funding
  • Impact on job creation
  • Budget details
  • Alignment of the project with the program objectives.

Applicants will be notified of the outcome of their applications by September 2025, and projects must commence by October 2025.

How BDO can help 

BDO has successfully secured numerous government grants for a range of clients across many different industries. We assist with the preparation of applications and can also help successful recipients understand novel changes to the program. If you have any questions regarding the Victorian Circular Economy Recycling Modernisation Fund Program, or any other government grants, please contact the R&D and Government Incentives team.