The Federal Government announced a Modern Manufacturing Strategy as part of its JobMaker plan in an effort to stimulate the Australian economy.
This strategy will see a total of $1.5 billion invested over five years in six key National Manufacturing Priorities, these are:
- Resources technology and critical minerals processing;
- Food and beverage;
- Medical products;
- Recycling and clean energy;
- Defence; and
Manufacturing Modernisation Fund
The Department of Industry, Innovation and Science have recently declared the guidelines for round two, however have not announced the opening date and we expect this to be in the coming weeks.
Round two aims to support approximately 150 firms that are covered in the six key National Manufacturing strategies, to make capital investments that will used to invest in efficient and transformative manufacturing processes, boost the growth of jobs and promote a more highly skilled workforce on the back of the COVID-19 recovery. A total pool of $50 million is available and Grant funding will be up to 25% of eligible project expenditure with a minimum grant amount of $100,000 and a maximum of $1 million.
Eligible applicants must:
- Have an Australian Business Number (ABN)
- Be non-tax exempt;
- Be registered for Goods and Services Tax (GST); and
- Be an incorporated entity in Australia, where your trading activities form a sufficiently significant proportion of your overall activities and are a substantial and not merely peripheral activity in your corporation.
Before applying, it is important that you can confirm:
- The corporation is a small or medium-sized manufacturer with up to 199 employees;
- The project has a minimum of $400,000 in project expenditure;
- That you are able to identify the level of Australian job creation expected from the project;
- That you can demonstrate that your project aligns with one or more of the above six National Manufacturing Priorities;
- You provide evidence from the board that the project is supported and can be completed; and
- You can meet the costs of the project not covered by grant funding.
The guidelines have requested the following documents be provided with the application:
- A detailed project plan, including;
- Scope of the project;
- Timeline of activities;
- Risk management plan; and
- Identification of key management and technical staff.
- A detailed project budget and explanation of the basis upon which the cost assumptions were made;
- Accountant declaration;
- Evidence of support from the board; and
- Trust deed (where applicable).
For more information please view the fund guidelines. For assistance in considering your business and project for suitability, to prepare for application submission and develop supporting documentation please contact your usual Mazars advisor via phone or the form below alternatively our Grant specialist, Angela Winton, on +61 7 3218 3900.
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