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As we embark on a new financial year, it’s crucial to take a strategic approach to understanding the government grants landscape.

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Client Alert

Government grant funding: what to expect in 2023

By:

Simone Barker

01 Feb 20238 min read

2022 was a year marked by unique opportunities and challenges for Australian manufacturing businesses, with many regaining growth momentum after pandemic lockdowns. There has been some uncertainty in government landscapes both federally and in some states.

Contents

Increasing inflationary pressures look set to continue into the new year and government grants are an alternate funding source for businesses looking to acquire and update equipment.

It is difficult to predict what grants will be available, and when – on top of this it is a competitive process. We’ve compiled a list of government grant funds to keep an eye out for in the new calendar year – read on for our thoughts on what to expect in 2023.

Who are these grants best for?

It’s no secret there are a plethora of grants available – over 4,000 programs on offer annually. However, the real value is knowing which grant program best matches your needs, and thereby where to focus your time and energy. Good applications take time and skill, and investing in an application without strong project to government policy alignment is not recommended.

We can help you translate your corporate strategy into an actionable grant targeting plan, with services to support you to identify the grants you need, help you confidently qualify identified opportunities and ensure you are ready to make an application within the tight application window.

Government grant funding is available to support businesses with projects that can demonstrate strong benefits to our economy. Job creation, export focus, new technology or capability development are all areas state and federal governments are keen to support. Sectors like Agriculture, Defence, Energy, Food & Beverage, Health, Medtech and Life Sciences, Mining, Resources and Critical Minerals, and Space are often targets for government funding and incentives.

Federal Grants

National Reconstruction Fund

The $15bn National Reconstruction Fund (NRF) is the Albanese Government’s centrepiece policy for the manufacturing sector. The NRF seeks to diversify and transform Australian industry and economy, driving sustainable economic growth.

The NRF will be modelled on the Clean Energy Finance Corporation and governed by an independent board making investment decisions, with finance options including loans, equity investment and guarantees. The NRF will target:

renewables and low emissions technologies
medical science
transport
value-add in the agriculture, forestry and fisheries sectors
value-add in resources
defence capability
enabling capabilities.

The Government is currently calling for public consultation on the implementation of the NRF and the investment mandate. Public consultation will close on 3 February 2023 – see more information here. The next stage of the process is an industry co-investment planning process.

If you’d like to keep up to date with the NRF and would like to discuss your project, contact us today.

OTHER GRANTS TO CONSIDER

Program Name	Manufacturing Focus	Timing	Funding	Action
ARENA grant programs, including the Advancing Renewables Program (ARP) and Future Fuels Program	Renewable Energy, clean technology	Ongoing	Various	Monitor and connect with Grants team for grants funding discussion.
Sovereign Industrial Capability Priority Grant (SICPG) and other Defence programs	SMEs building industrial capabilities for Defence sector	Assessed in batches	Up to $1 million (50% co-contribution)	Connect with Grants team for grants funding discussion.
Industry-lead research collaboration programs - co-operative research centre (CRC) grants and co-operative research centre projects (CRC-P) grants	Industry and research collaborations	Now open	CRC – up to 50% eligible funds CRC-P – up to $3 million	Connect with Grants team for grants funding discussion.

State Grants

VICTORIA

After a period of uncertainty, political stability has returned with the continuing Labor government. The government recently released its Advancing Victorian Manufacturing strategy. As such, we are expecting a number of exciting grant opportunities for Victorian manufacturers, including the imminent Business Competitiveness Program.

Priority industry sectors include: agriculture, advanced manufacturing, medtech manufacturing, mining and resources, cultural and creative economy, small business, tourism, sports and major events.

Program Name	Manufacturing Focus	Timing	Funding	Action
Business Competitiveness Program (BCP)	Manufacturers seeking to expand or enhance their manufacturing capabilities	Round 2 anticipated to open early 2023 (e.g. January 2023)	Up to $500,000 (up to 33% of eligible project expenditure)	Connect with Grants team for grants funding discussion
Medtech Manufacturing Capability Program	Manufacturers and medical technology businesses to build capability and capacity.	New round anticipated in 2023	Up to $500,000 (50% cash contribution basis)	Monitor and connect with Grants team for grants funding discussion
Regional Jobs and Infrastructure Fund	Regional development – infrastructure or job creation projects	Open, ongoing	Various	Connect with Grants team for grants funding discussion
Breakthrough Victoria Fund	High impact, innovative companies in priority industries: health and life science; clean economy; advanced manufacturing; agri-food; digital technologies. Breakthrough Victoria Challenge: solar PV recycling and material extraction solutions.	Open, ongoing	Various – pre-seed ($150,000) to growth equity ($40 million) investments.	Connect with Grants team for grants funding discussion

NEW SOUTH WALES

While NSW was impacted by floods this year, it is now focused on strong economic recovery. In the last quarter, the state offered a number of grant opportunities for projects in the critical minerals and clean energy space.

NSW will head into caretaker mode soon ahead of its state election in March 2023. There will be a lull in grant funding opportunities for NSW businesses until the outcome of the election, and should there be a change of government, this may introduce further funding uncertainties for the state.

Priority industry sectors include: emerging industries - clean energy and waste; defence and aerospace; digital systems and software; medical and life sciences; existing industries – international education; visitor economy; agriculture and agrifood; resources; core enabling technologies - advanced manufacturing, biotechnology, digital technology including fintech.

Program Name	Manufacturing Focus	Timing	Funding	Action
Programs under the $703 million Future Economy Fund	Priority industry areas such as modern manufacturing, medtech, defence and aerospace	Pending	TBC	Consider your project pipeline and grants strategy. Connect Grants team.
New rounds of the Critical Minerals and High-Tech Metals Activation Fund	Technology, manufacturing and mining industries	Pending	TBC	Consider your project pipeline and grants strategy. Connect Grants team.
New rounds under the NSW Environmental Trust	Clean technology, recycling and environmental projects	Various	Various (e.g. up to $3 million for Clean Technology Research and Development grant)	Consider your project pipeline and grants strategy. Connect Grants team.
Regional Job Creation Fund	Job creation in regional NSW	Round 3 now open, closes 6 March 2023	$100million pool	Connect with Grants team now.
Regional Investment Activation Fund – Stream 2	Priority industry areas in regional NSW	Ongoing until Dec 2024 or when fund exhausted	Up to $10 million	Connect Grants team.

QUEENSLAND

Queensland remained a politically stable landscape in 2022 and we anticipate the same in 2023. With the recently revamped Advanced Manufacturing 10 Year Roadmap and Action Plan and the Energy and Jobs Plan, Queensland looks to continue strong support for its manufacturing and clean energy sectors. In its recent State budget update, Queensland forecasted solid economic growth and will focus on reinvesting into the economy.

Priority industry sectors include: advanced manufacturing, hydrogen, biofutures, biomedical, defence, aerospace, space, resource recovery and METS.

Program Name	Manufacturing Focus	Timing	Funding	Action
Manufacturing Hubs Grant Program	Manufacturers across five eligible regions: Cairns, Central Queensland, Gold Coast, Mackay and Townsville.	Round 3 opening early 2023	TBC – guidelines to be released soon. Expecting up to $2.5 million available.	Connect with Grants team.
Industry Partnership Program	Priority industry sectors.	Ongoing	Based on individual project costs	Connect with Grants team.
Made in Queensland	SME manufacturers to increase international competitiveness, productivity and innovation	Round 6 anticipated for mid-late 2023	Up to $500,000 (33% co-contribution)	Connect with Grants team.
Invested in Queensland – Strategic Investment Scheme and the Investment Support Scheme	Priority industry sectors	Ongoing	Various – financial, fiscal and non-monetary support available. Discretionary program.	Connect with Grants team
Clean Energy programs	Technology, clean and renewable energy sectors	TBC	TBC	Consider your project pipeline and grants strategy. Connect with Grants team.
Future programs under - Queensland Energy and Jobs Plan - Regional Economic Futures ($200 million)	Priority sectors	TBC	TBC	Consider your project pipeline and grants strategy. Connect with Grants team.
Future programs under - Critical Minerals Investment Fund ($100 million) - Critical Minerals Common User Infrastructure ($150 million)	Mining and METS, technology and energy industries	TBC	TBC	Consider your project pipeline and grants strategy. Connect with Grants team.

WESTERN AUSTRALIA

Western Australia remains a stable grants landscape for businesses. In 2023, we anticipate grant focuses on the clean and renewable energy sectors.

Priority industry sectors include: energy, tourism, international education, defence, mining and METs, space, health and medical life science, primary industries.

Program Name	Manufacturing Focus	Timing	Funding	Action
Carbon Innovation Grants	Technology, clean and renewable energy sectors	Round 2 pending	TBC – potentially up to $1.5 million (up to 75% co-contribution)	Consider your project pipeline and grants strategy. Connect with Grants team
Collie Industrial Transition Fund	Green manufacturing, energy intensive industries and future clean energy industries in Collie	Expressions of Interest now open	From $2 million (50% co-contribution). Fund pool of $200 million.	Connect with Grants team
Investment Attraction Fund	Industry-led diversification proposals from new and emerging businesses in priority sectors.	Round 2 expected in 2023	TBC. $80m committed in State Budget over next 4 years	Consider your project pipeline and grants strategy. Connect with Grants team

Government grant funding: what to expect in 2023

Who are these grants best for?

National Reconstruction Fund

OTHER GRANTS TO CONSIDER

VICTORIA

NEW SOUTH WALES

QUEENSLAND

WESTERN AUSTRALIA

Connect

About

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Government grant funding: what to expect in 2023

Who are these grants best for?

National Reconstruction Fund

OTHER GRANTS TO CONSIDER

VICTORIA

NEW SOUTH WALES

QUEENSLAND

WESTERN AUSTRALIA

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