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What is the Manufacturing and Industry Development Fund?
The Manufacturing and Industry Development Fund is a program to help to build Victoria’s sovereign manufacturing capability by providing grant support to Victorian businesses in key growth sectors across the state.
The Manufacturing and Industry Development Fund will support the creation of around 1000 new jobs in its first year, driving economic recovery and ensuring Victorian industry remains sustainable and can continue to thrive into the future.
The Manufacturing and Industry Development Fund assists Victorian based companies that are intending to implement new manufacturing technologies and that will provide a critical foundation for:
- Generating sustainable new local jobs, including high-value jobs
- Improving productivity and international competitiveness and
- Targeting growth opportunities.
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The Manufacturing and Industry Development Fund’s first key initiative, the Business Competitiveness Program, offers grants of up to $500,000 to support projects which help businesses to grow and create new jobs.
Grants can cover up to one-third of eligible costs for projects including the purchase and commissioning of capital equipment, manufacturing product and process improvements, and supply chain capability development.
A second initiative under the fund will also open in the coming months. The Industry Investment Readiness Program will target growing businesses across key sectors including advanced manufacturing and digital tech.
The Manufacturing and Industry Development Fund applications are sought from Victorian companies investing in their manufacturing operations that meet the program objectives. Companies in the future industry growth sectors can also apply.
The fund supports projects that will deliver on the program objectives by undertaking activities such as:
- The purchase and implementation of capital equipment (recorded as fixed assets in the applicant’s accounts)
- Manufacturing product and process improvements
- Prototyping, evaluation and testing of new manufacturing products and processes
- Supply chain capability development.
Any other activities will be considered on a case-by-case basis.
The Manufacturing and Industry Development Fund applicants are required to demonstrate the need for government funding, including the likelihood of the project proceeding if the application is unsuccessful.
Joint applications are acceptable, provided they have a lead applicant who is both the primary project proponent and an eligible applicant.
Applicants must meet the co-contribution requirement with expenditure on eligible project activities. In-kind contributions are excluded (i.e. non-monetary resources).
Eligible Manufacturing and Industry Development Fund’s project expenditure includes the following activities relating to the proposed project:
- Capital expenditure and other project-related non-capitalised expenditure (but does not include vehicles, internal costs or salaries)
- Manufacturing product and process improvements (including significant improvements in technical specifications; components and materials; software in the project; user friendliness or other functional characteristics; and/or new or significantly improved production or delivery methods)
- Prototyping, evaluation and testing of new products and manufacturing processes
- Supply chain capability development
- Training specific to the technology (external costs only)
- Labour and contractors (but does not include internal salaries)
- Manufacturing machinery and equipment, (for example, repurposing state-of-the-art automotive manufacturing equipment), or
- Minor building alterations and fit-out costs.
Eligible project expenditure must:
- Be incurred by the grant recipient within 18 months of execution of the grant agreement;
- Be a direct cost of the project; and
- Be exclusive of the Goods and Services Tax (GST).
Applicants will be required to provide quotations and estimates in support of their applications. Funds from other Victorian or Commonwealth Government programs cannot form part of the co-contribution.
If applying jointly with other businesses for the Future Industries Fund Manufacturing Program, all businesses may contribute to project expenditure to meet the co-contribution requirement. However, one business (company) must be the lead applicant.
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Applicants must meet all the following criteria to be eligible for assistance under the Manufacturing and Industry Development Fund:
- Have an Australian Company Number (ACN)
- Have an Australian Business Number (ABN)
- Be a Victorian-based business that is investing in its Victorian manufacturing operations
- Have the ability to meet the co-contribution requirement ($3 for every $1 granted)
- Provide financial reports for the last three financial years to enable the Department of Economic Development, Jobs, Transport and Resources (the Department) to conduct a financial risk assessment (FRA).
FRAs are undertaken by the Department to establish the financial risk exposure of the applicant, and whether the applicant is likely to remain financially viable over the duration of the project.
Manufacturing and Industry Development Fund applications are now open.
Made in Victoria recognises the long history and culture of manufacturing in Victoria. The statement outlines the Victorian Government’s ongoing plans for the state’s $31 billion manufacturing industry. Major investments by world-leading companies are creating secure jobs, building local capability to connect into global supply chains and putting Victoria at the forefront of advanced manufacturing.
The Victorian Government has released a Statement of Commitments aimed at boosting the state’s advanced manufacturing sector. The government will be investing $2 billion over ten years to support businesses to commercialise, boost innovation and create high paying jobs. Key sectors include agri-food, health and life sciences, the low carbon economy and digital technologies.