Investing in Victorian Manufacturing Growth and Jobs

The Victorian Government Business Competitiveness Program will help to secure Victoria’s sovereign manufacturing capability by improving productivity, creating sustainable local jobs, increasing industry competitiveness and strengthening local supply chains in key sectors including medtech, defence and food manufacturing.

The Business Competitiveness Program will assist small and medium manufacturers with an existing presence in Victoria to expand their manufacturing operations and implement new manufacturing technologies and processes that provide a critical foundation for generating sustainable new local jobs.

“Victoria is the manufacturing state. At the core of our strength are businesses that continually innovate and lead the way in their industries. We’re backing businesses to keep ahead of the pack because we know that it means more jobs for Victorians and an even stronger future for the sector.” said Minister for Industry Support and Recovery Martin Pakula in a statement

The program aims to create jobs, increase industry competitiveness, and help strengthen local supply chains in traditional and emerging manufacturing sectors where Victoria has competitive advantages.

Grants of up to 33 per cent of eligible project expenditure, up to a maximum grant amount of $500,000, will be allocated on a competitive basis for projects to be completed within 18 months of receiving the grant.

Eligible projects include the purchase and commissioning of capital equipment, manufacturing product and process improvements, prototyping, evaluation and testing of new products and processes, and supply chain capability development. Further details can be found in the program guidelines linked below.

The Fund is expected to create hundreds of new jobs, with funding spread over three years to boost the capabilities of Victorian businesses so they can expand and generate ongoing job growth.

Applications are currently open and have been extended until 11:59pm on 4 July 2021.

What support is available?

The program provides grants of up to 33 per cent of eligible project expenditure allocated on a competitive basis. The maximum grant amount is $500,000 and the minimum grant amount is $50,000. For example, a $900,000 project where capital equipment is purchased and implemented may be eligible for a grant amount of $300,000.

All grants require a minimum co-contribution from the applicant of 67 per cent of total eligible project expenditure ($2 for every $1 funded by the Victorian Government).

Applicants will be required to provide quotations and estimates in support of their applications and must clearly demonstrate how funding the project activities will support the creation of new jobs.

Who can apply?

The Business Competitiveness Program is open to small and medium sized businesses that are on a growth trajectory and require support to expand their manufacturing operations.

To be eligible for the program an applicant must:

• operate a business located in Victoria

• hold an Australian Business Number (ABN)

• be currently engaged in manufacturing or the manufacturing supply chain or demonstrate a genuine commercial connection to the manufacturing supply chain

• employ at least 20 FTE* (full-time equivalent) staff or have an annual turnover of greater than $1.5 million (preference will be given to applicants that employ less than 200 people)

• agree to meet any co-contribution requirements with eligible cash expenditure.

*Companies with fewer than 20 FTE staff may be considered but will need to demonstrate why their project should be funded and how it will stimulate job creation.

A full list of eligibility criteria, assessment criteria and conditions can be found in the program guidelines.

What can the grant funds be used for?

This grant will support the purchase and commissioning of capital equipment (recorded as fixed assets in the applicant’s accounts) and associated project expenditure related to manufacturing product and process improvements, prototyping, evaluation and testing of new products and processes, and supply chain capability development.

Any other activities will be considered on a case-by-case basis.

Eligible project expenditure includes the following activities relating to the proposed project:

• capital expenditure (e.g. manufacturing machinery and equipment)

• other project-related non-capitalised expenditure (e.g. related to product and process improvements, prototyping, evaluation and testing of new products and processes, and supply chain capability development)

• minor building alterations and fit-out costs

• training specific to the technology (external costs only)

• labour and contractors (but does not include internal salaries).

Applications are currently open and have been extended until 11:59pm on 4 July 2021.

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Source: Business Competitiveness Program | Business Victoria