These budgets not only demonstrate the respective State Governments' dedication to fostering growth and development across key sectors, but also emphasise the alignment of state and territory grant programs with national domestic priorities, such as the renewable and clean energy transition and the reshoring of manufacturing to enhance sovereign capabilities.
Building upon the initiatives outlined in May’s Federal Budget and the newly legislated National Reconstruction Fund, State Governments are actively bolstering grant programs and incentives to support emerging industries. However, it is important to recognise the nuanced funding landscape that is taking shape, as each State responds differently to their budgetary environments and future-focused objectives.
In the pursuit of fostering growth in emerging industries, State Governments across Australia are forging ahead with ambitious funding allocations. However, the diversity of financial circumstances among the states results in variations in the scale and breadth of support provided. While several states with budget surpluses are actively expanding their grants and support systems to stimulate new sectors, Victoria is grappling with significant deficits, prompting a narrower scope and a highly targeted approach to support initiatives.
Consequently, businesses and organisations operating in Victoria must navigate a more competitive landscape to secure funding. Furthermore, with Federal programs currently offline since last year's election and a comprehensive review of New South Wales’ programs by NSW Treasury underway, we anticipate a surge in competition driven by pent-up demand once Federal programs become available again. Therefore, it is crucial for entities planning investments in priority sectors to proactively develop their grant strategies in order to be ready with a compelling response once the newly announced Federal programs open.
Both Queensland and South Australia have demonstrated a consistent focus on infrastructure development, emphasising the need for skills development, training, job creation, and support for small businesses. This proactive approach is designed to meet the growing workforce demands anticipated in the years ahead.
While both states recognise the significance of the clean energy transition, Queensland has shown a particularly robust commitment to the renewables and low emission technologies industries. This focus is likely attributable to Queensland's strong fiscal performance, enabling increased investments in these emerging industry sectors.
In South Australia, a notable emphasis has been placed on investment attraction, with Victorian businesses identified as those who may be seeking a change of state. Some have read the South Australian budget as a response to Victoria's recent budget decisions, which involve tax increases, including increased land taxes for businesses starting July 1. In contrast, South Australia has firmly committed to avoiding payroll or land tax increases, positioning itself as an appealing destination for businesses seeking a tax-friendly environment.
State Industry Support
Northern Territory
The Northern Territory budget delivered a record $2.1b spend on infrastructure, which pushes out the timetable for a return to surplus by FY27. Industry investment, from a grant perspective, focuses on investment attraction, advanced manufacturing and tourism.
Northern Territory Industry Funding
- $24.1m to support Investment Territory to facilitate major projects and private sector investment.
- $4.6m over three years to accelerate development of the hydrogen industry and $7.3m over two years for the Renewable Remote Power Program which includes renewable hydrogen trials to continue delivering clean and reliable electricity to remote communities.
- Continued support for the Local Jobs Fund which provides Territory businesses with access to capital to help them expand and create opportunities to generate local jobs. This includes a priority sector collaborative grants program providing up to $1m in matched funding to deliver common-use infrastructure, services or data.
- Continued support for the Northern Australia Infrastructure Facility, with investment from the Commonwealth Government, as a loan program for businesses looking to deliver small-scale projects across the NT. The aim of the loan program will be to expand infrastructure and improve economic outcomes, including for Indigenous Territorians.
- Continued support for the Advanced Manufacturing Ecosystem Fund NT, a grant program that provides matched funding of up to $500k to SME manufacturing enterprises to grow.
- $2.5m over two years for circular economy programs, which includes the Transformational Circular Economy Infrastructure Grant, providing grants of up to $500,000 for infrastructure projects with a focus on repurposing construction, demolition, food, garden and organic waste.
- Tourism support, including $1m for round six of the visitor experience enhancement grant program where Territory operators can receive up to $100k in funding to upgrade their visitor experience; and $2.2m to continue tailored tourism business support programs.
Queensland
With the Palaszczuk Government delivering a record $12.3b surplus, Queensland is set to continue investing in critical initiatives across various sectors like renewable energy, infrastructure, critical minerals and skills and training. These allocations aim to stimulate economic growth, create jobs and position Queensland for future opportunities in traditional and emerging industries.
Queensland Industry Funding
- $19b over four years towards the Queensland Energy and Jobs Plan, which sees investment in new wind, solar, storage and transmission.
- $4b for priority regional infrastructure projects.
- $1.9b over four years to commence delivery of venues infrastructure for the Brisbane 2032 Olympic and Paralympic Games.
- $20m over three years of additional funding to grow the future hydrogen industry by super-charging Queensland's Hydrogen Hubs and engaging the community around hydrogen.
- $21m over two years of additional funding to implement the Frontier Gas Exploration grants program to support appraisal activities to unlock significant gas resources in the Bowen and Galilee basins.
- $120m to enlarge the Resources Community Infrastructure Fund. With special focus on coal producing regions.
- $100m to establish a Queensland Critical Minerals and Battery Technology Fund to position Queensland for the next resources boom in the critical minerals needed for the clean energy revolution.
- $32.3m to the Made in Queensland Program to assist small to medium sized manufacturers to increase international competitiveness, productivity and innovation via the adoption of new technologies, systems and processes, and to generate high-skilled jobs for the future.
- $28.0m as part of the $70.0 million Building our Regions program (Round 6) to assist water service providers to deliver water and sewerage projects that create regional and economic development opportunities, support local industry growth, generate jobs, and improve liveability in Queensland's regional communities.
- $16.7m through the Manufacturing Hubs Grant Program to assist regional small to medium sized manufacturers to become more productive, build their advanced manufacturing capabilities and create the jobs of the future.
- $16.3m over 4 years for a package of measures to support women’s economic security. These include targeted grants programs and tailored support, training and mentoring services to support women’s participation in male-dominated industries, enhance retention of female apprentices in trades and support women in business and innovation and disadvantaged and vulnerable women.
- $53.5m of increased funding to expand the Industry Partnership Program to incentivise emerging industries, target supply chain gaps, create jobs and strengthen Queensland's economy though the transition to decarbonisation.
- $20m of additional funding to the Tourism Experience and Infrastructure Grants Program to support tourism experience development in priority areas with focus on First Nations, sustainability, eco/nature and accessibility.
- $3.3m of increased funding to the Rural Economic Development Grants Program to increase employment and agribusiness development in regional Queensland.
- $1.2b in skills and training initiatives in 2023-24.
- $520m over the period 2023-24 to 2029-2030 for investments through Low Emissions Investment Partnerships program to drive emissions reductions, with a focus on the state’s highest emitting metallurgical coal mines.
South Australia
Although South Australia has shown a $249m deficit, it will continue to invest billions over the coming years into state infrastructure and other critical industries. The Budget shows particular focus on research and innovation, regional development and state tax settings to encourage interstate investment.
South Australia Industry Funding
- $21b over four years for total public sector infrastructure spend.
- $588.4m for new measures supporting regional South Australia.
- $20.8m over four years to fund new events and grow existing managed events in Australia. This is in addition to the governments continued commitment to host the LIV Golf tournament and AFL Gather Round.
- $2m over four years to increase the Adelaide Film Festival Investment Fund. The fund provides equity investment in Australian screen production projects to ensure the Adelaide Film Festival continues to present bold, diverse and culturally significant screen content annually.
- $22m in 2026-2027 to increase the Economic Recovery Fund to $122m to support initiatives that promote job creation, build advanced manufacturing capability, and increase productivity and development opportunities in South Australia.
- $33m over four years to repurpose the government’s commitment to the Australian Space Park proposal to establish a common user facility for the space industry at Lot Fourteen. This will expand the existing space presence at this site, helping to attract, grow and retain space companies in South Australia.
- $25.4m over five years (including $4.5 million in 2027-28) to continue supporting ongoing operations and upgrades to equipment of six South Australian based National Collaborative Research Infrastructure Strategy facilities. The facilities support multiple sectors including agriculture, food and wine, health and medical, defence and space, advanced manufacturing, environment, and energy.
- $20m over four years for the Research and Innovation Fund, including continued funding of the startup hub at Lot Fourteen.
- $13.5m over four years for the extension of the South Australian video game development rebate scheme to keep the state nationally competitive, retain industry jobs and continue the state’s industry growth.
- $6.5m over four years to deliver the South Australian small business strategy to increase the skills, capability and capacity of small business owners and support them to create jobs and build the economy.
- $1.2m over two years to facilitate the development and implementation of the Hydrogen and Renewable Energy Act, supporting delivery of the hydrogen jobs plan and a world-leading green hydrogen sector.
- $9m over three years for equipment and capital grants to support TAFE SA, not-for-profit and industry-based providers to invest in contemporary infrastructure, equipment and technology aligned with areas of skill demand and economic priorities.
- $28m over four years to address current and emerging skill shortages and support quality training through a targeted increase in the training subsidy for high quality not-for-profit and industry-based training providers aligned with areas of skill demand and economic priorities.
Tasmania
Tasmania’s economy has slowed as inflation increases nationally. Focus is limited beyond health, education and road and transport infrastructure. Industry support is modest and highly targeted. These include:
Tasmania Industry Funding
- $2m over two years funding to the Tasmanian Institute of Agriculture, through the Agricultural Innovation Fund, to undertake agricultural research, development, extension and education.
- $3.75m over two years to deliver the Renewable Energy Agenda, which includes Project Marinus (the electricity and telecommunications interconnector between Tasmania and Victoria), onshore and offshore renewable energy developments, Battery of the Nation projects and the implementation of Renewable Energy Zones in the State.
- $5m to the Tasmanian Active Infrastructure Grants Program, which will provide grants to the sports and recreation sector to build new, and upgrade existing, sport and recreation infrastructure over two years. It builds on the success of the Leveling the Playing Field and Improving the Playing Field grant programs, which provided up to $500k per project to upgrade amenities at sporting facilities around Tasmania.
- $500,000 to support the Tasmanian Defence Industry Strategy, which aims to further grow the State’s defence industry activities, including a refresh of the existing defence strategy. A Defence Advocate will also support existing and prospective defence industry businesses to grow the State’s contribution to defence industry markets. Other defence support also included a $5m grant awarded to the Elphinstone Group for international defence infrastructure.
- $425,000 to support the Small Business Growth Strategy Grants program.
- $390,000 to support the Accelerating Trade Program.
Victoria
Victoria is focused on balancing its debt while delivering on funding election commitments. The Budget indicates that grant expenses are forecast to fall over FY24 due to reductions in pandemic support. Highly targeted industry investment is focused on backing the manufacturing industries while supporting jobs, skills training, and incentivising tourism attractions.
Victoria Industry Funding
- $21.2m over two years to establish a Manufacturing and Industry Sovereignty Fund, which would provide grants to support the development, expansion and retention of Victoria’s strategic manufacturing capability. This also includes support for Victorian businesses to access the Commonwealth’s $15b National Reconstruction Fund.
- $15m Industry R&D Infrastructure Fund to incentivise private industry investment into research and development, and complement the Commonwealth’s existing R&D tax incentive.
- $31m to back producers in the food and beverage industry with continued grant programs for producers; and further funding for scholarships for hospitality workers, a farm safety and wellbeing program, and funding for pests and weed management.
- $5m additional funding to the Alice Anderson Fund, which supports women-led start-ups to leverage private sector capital. In FY24 the Fund expects to support 30 female founder equity investments.
- $4m over the next two years to support Victoria’s defence and space industry and supply chains to secure major defence contracts through advocacy, advisory and capability development.
- $20m additional funding to the International Investment Attraction Fund by targeting the world’s most innovative companies and projects to support economic development and create high-value Victorian jobs.
- More than $900m into medical research and $12m additional funding to continue supporting the growing mRNA industry to develop life-saving therapies in Victoria.
- $23m expansion to the Major Events Fund promoting Victoria’s calendar of events and strengthening the State’s position as the nation’s top location for major events.
- Various skills and training support, including the Digital Jobs for Manufacturing program which provides businesses with grants for their employees to develop in-demand skills like robotic process automation and data analytics.
- $34.7m on cyber security reform, which includes development of a new Cyber Defence Centre.
- Continued support for the $2b Breakthrough Victoria Fund, which provides additional investment and support to five future-focused industries: advanced manufacturing, agri-food, the clean economy, digital technologies, and health and life sciences. In FY24, the Fund expects to support 15 companies/consortia.
Western Australia
With Western Australia on track for a $3.3b surplus in 2023-24, the Government has announced new measures to tackle climate change as well as continued funding to industry programs. The focus under the WA Jobs Plan is on creating long-term jobs while diversifying the WA economy, and drive new job opportunities in high tech manufacturing, clean energy, agriculture, tourism and defence.
Western Australia Industry Funding
- $3b towards WA’s transition to cleaner, reliable and affordable energy, and to take action on climate change. This includes pre-allocated funding towards critical infrastructure required to decarbonise the electricity grid and replace the State’s coal-fired power stations.
- $40m Sustainable Geoscience Investments package to accelerate critical minerals discoveries, to help meet demand for minerals used in new battery technologies.
- $15m additional funding for tourism initiatives, including attracting additional major and business events to Perth.
- $195m over three years to the Collie Industrial Transition Fund and the Collie Futures Fund to support the transition of the Collie economy from its coal dependence.
- $200.7m over three years remains of the $285 million Investment Attraction Fund to support and attract investment in new energy industries.
- $9.1m expansion over two years for the New Industries Fund, to drive innovation, develop and attract entrepreneurs, create jobs, and deliver targeted support for female and Indigenous founders and businesses seeking to commercialise products.
- $10m addition over two years for hydrogen-fuelled transport, and $3m addition over two years for renewable hydrogen initiatives, which includes a refresh of the WA Renewable Hydrogen Strategy.
- $6.6m over the forward estimates for the Food and Beverage Value-Add Fund to support agriculture, food and beverage businesses to expand, diversify or relocate their value-add processing operations in Western Australia.
- Additional industry development includes: attracting common user infrastructure from the Commonwealth Government through key initiatives such as the National Reconstruction Fund; growing the States’ advanced manufacturing capabilities; developing local iron ore railcar wagon manufacturing and wind turbine manufacturing industries; advancing defence and space industries; supporting three new early-stage venture funds (Purpose Ventures Fund, FundWA and Quokka Capital); developing partnerships with airlines under the Aviation Recovery Fund; and implementing a Health and Medical Life Science Industry Strategy.
For more information or support in accessing these initiatives, including developing your grant strategy and readiness response, please reach out to our team below.
