Up to $20,000 is available from Local Capability Fund to support SMEs to supply major projects and markets in Australia and overseas.


Local Capability Fund

The Local Capability Fund aims to assist small and medium enterprises (SMEs) in Western Australia to increase their capability and competitiveness as suppliers of products, services and works to the Western Australian State Government, major projects and other important markets.

The LCF typically provides funding assistance on a dollar for dollar basis for activities such as planning, improvements to internal infrastructure, plant and equipment and training.



The Local Capability Fund (LCF) is a funding program under the Industry Facilitation Scheme (The Scheme). The Scheme is an approved guideline under section 10 of the Industry and Technology Development Act 1998.

The objective of the LCF is to provide small and medium sized enterprises (SMEs) with funding support to enhance their capacity, capability and competitiveness to supply major projects and markets in Australia and overseas.

Four new rounds of the LCF were launched for 2019-20: METRONET Railcar Procurement, Aboriginal Business, the Future Battery Industry and the Western Australian Industry Participation Strategy (WAIPS).



Specific objectives include:

  • Improving the applicant’s capability and capacity to service the market
  • Meeting the requirements for pre-qualification, contractual or technical compliance of the market
  • Overcoming barriers and constraints to participate in the market
  • Improving innovation and research
  • Improving overall applicant competitiveness



The level of funding support under the LCF is 50% of eligible costs up to a maximum of $20,000 (excluding GST) per successful applicant. In some circumstances (for certain rounds) both the percentage and the maximum amount may be increased depending on the specific objectives and requirements of the LCF round. Applicants are advised to refer to the relevant application form for the level of funding provided for the specific round in which you are applying.


Eligible Projects

Planning – This includes, but is not limited to:

  • Strategic and business planning
  • Contract and tender negotiation planning, including terms and conditions advice
  • The writing and implementation of marketing plans
  • Feasibility studies
  • Assistance in applying for other government and international grants
  • Domestic and International market entry planning

Plant and Equipment – This includes, but is not limited to:

  • Upgrading or modifying existing equipment or machinery
  • Acquiring equipment, machinery

Improvements to internal business infrastructure/systems – This includes, but is not limited to:

  • Improvements to occupational health & safety systems, quality assurance systems, manufacturing and management systems
  • The implementation and audit of ISO management system standards, including but not limited to, ISO 9001 Quality Management, ISO 31000 Risk Management, ISO 14000 Environmental Management and general occupational safety and health standards
  • Upgrades or expansions to applicant owned property/buildings
  • Specialist software purchase and upgrades e.g. tender management software, computer aided drafting or project management software linked to a specific outcome and to raise capability
  • Technical advancements/processes
  • Other activities identified as necessary to help meet the prequalification requirements of the target market.

Training – this includes but is not limited to:

  • Up-skilling employees which leads to improved operational processes
  • Training linked with the acceleration and boosting of Australian Apprenticeship completion rates
  • Training that is part of the employer’s staff development
  • Travel and accommodation costs associated with training – where local options are not available
  • Costs involved in bringing registered trainers to deliver local group training


Eligible Applicants

To be eligible for funding, businesses must meet the eligibility criteria outlined in the self-assessment checklist included in the application form for the relevant round.

Previous recipients of funding through the Industry Facilitation and Support Program (IFSP) or the Local Capability Fund are eligible to apply, subject to:

  • the business having complied with the requirements of the Financial Assistance Agreements entered into for the prior funding; and
  • The business having received no more than three (3) approvals under this grant process in the last five (5) years.



Applications close 31 January 2020, or until funds are exhausted(whichever comes first).


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