Innovative Manufacturing Adoption Fund Stage 1

Before starting your application, read the Program Guidelines and Frequently Asked Questions.

Please watch the program information recording.

Eligible entities must:

• have an active Australian Business Number (ABN)
• be an Australian corporation
• be headquartered in NSW
• have an account with an Australian authorised deposit-taking institution (ADI)
• have a minimum turnover of $1 million in each of the two financial years before applying
• have between 10 and 100 full-time equivalent employees
• operate a manufacturing facility in NSW
• operate in a manufacturing industry under a relevant Australian and New Zealand Standard Industrial Classification (ANZSIC) code or Business Industry Code (BIC)
• demonstrate current or potential capability in advanced manufacturing within a relevant sector (see 1.3 Target Sectors)
• demonstrate that the purpose of your project is investigating adopting one or more of the Target Technologies and Capabilities (see 1.4 Target Technologies)
• provide a minimum 50% cash co-contribution towards the total eligible project expenditure.

The Fund targets manufacturers with current or intended capabilities to supply products and manufacturing services to the following sectors outlined in the NSW Industry Policy and NSW Trade and Investment Strategy:

• Construction and Building Products (including Modern Methods of Construction)
• Clean energy products
• Transport and Rolling Stock
• Defence and Aerospace
• Health and Medtech Manufacturing
• Digital Technologies - Advanced Electronics
• Mining Equipment, Technology and Services
• Agriculture
• Food and beverage manufacturing

Note that Net Zero/ Energy-related manufacturing activities such as manufacturing solar panels and wind turbines are not supported under this Fund. These activities will be supported through other NSW Government programs.

Stage 1 funding supports manufacturers to engage an external consultant or manufacturing service provider to investigate adoption of one of the Target Technologies (see 1.4).

Eligible activities include:

• feasibility studies and business case development
• pilot projects, prototyping, and process testing
• assessment of new equipment, software, or systems
• certification and compliance requirements.

Projects must deliver an evidence-based report that:

a) assesses the technical feasibility and commercial viability of adopting the proposed technology

b) provides a recommended pathway for adoption.

This report will form the basis for Stage 2 consideration, demonstrating how adoption of the technology would be transformative for the business.

Eligible activity expenditure includes reasonable and necessary costs that are directly related to delivering the approved project activities. These activities and associated costs must occur within NSW. Any proposed activity or expenditure outside NSW must be justified and demonstrate why the activity or expenditure could not reasonably be undertaken in NSW. 

The grant will fund 50% of your eligible expenditure within your approved project budget. Eligible costs include:

• Consultant/Manufacturing Service Provider Costs – a minimum of 75% of your project budget must be used for fees and disbursements charged by the external consultant/manufacturing services provider in accordance with their project proposal, including
  • advice and technical services
  • pilot production runs/samples
  • assessing and testing of equipment, software, and processes.These costs must be in accordance with the consultant/provider’s proposal submitted with your grant application, and consistent with market rates.
• Internal Costs – up to 25% of your project budget may be used for internal wages for necessary work to facilitate delivery of the project.

NSW government may, in its absolute discretion, deem other costs eligible if they align with the Fund’s objectives and approved project activities.

Funding is not provided to entities if they are:

• insolvent
• an individual/sole trader
• an unincorporated association
• a trust or trustee
• a partnership
• tax exempt
• bankrupt or subject to ongoing legal proceedings
• a government entity including:
  • an Australian or NSW government agency
  • local government entity authority
  • a state-owned corporation or statutory authority
• an Australian subsidiary of an international company
• not supplying (or intending to supply) products or manufacturing services for a Target Sector
• receiving or has received funding from an Australian government agency for the same, similar or related grant activities.

The following costs are not eligible for funding:

• Purchase or lease of equipment
• Research and development activities not directly related to the approved project
• General administrative or ongoing operational expenses
• Equipment maintenance and repairs
• Standard IT equipment or software not related to project testing or delivery
• Activities undertaken before the application was submitted
• Property or land acquisition
• Costs in connection with applying for this grant or complying with your grant obligations

Investment NSW may update guidance on eligible and ineligible expenditure from time to time. For approved projects, the guidance in place at the time of application will apply.

The following activities are ineligible for funding:

• internally produced business cases
• pilot projects or testing conducted internally
• purchase of machinery, equipment or physical hardware (this may be supported under Stage 2)
• training and skills development (this may be supported under Stage 2)
• capital works
• activities that do not align with the Fund’s objectives or focus on manufacturing capability
• activities already funded by another government program
• activities that commenced before the application was submitted
• any other activities considered inconsistent with the program requirements

If applicants start project activities after submitting an application but before a funding agreement is signed, they do so at their own risk and are responsible for any costs incurred. Investment NSW is not responsible or liable for any costs incurred if an application is unsuccessful.

Only one application per business (including related entities) will be accepted at a time. If multiple applications are submitted, only the first will be assessed.