New Grant – Good News for Aussie Manufacturers

September 11th, 2014

After a tough trot, Australian manufacturers can breathe a sigh of relief after the Australian Government revealed applications are now open for the Manufacturing Transition Program.

The program will provide manufacturers with a $50 million boost to become more competitive and sustainable.

Available to any manufacturer spending over $4 million on capital expenditure / expansion activities, the program focuses on businesses looking to transition or expand their operations to higher value-added or more knowledge intensive manufacturing. A great help to those manufacturers already expanding and improving products / services through R&D activities.

What’s on offer

It is a competitive, merit based program that provides;

  • Grants ranging from $1 million to $10 million
  • Funding for up to 25 per cent of eligible project costs (i.e. projects must have a minimum outlay of $4 million and applicants can seek a minimum of $1m in assistance), and;
  • Support over a two year period

Activities must meet the following criteria to be eligible for the grant;

  • Changing or extending your existing premises.
  • Acquiring, building, installing and commissioning new machinery and equipment.
  • Training in the use and maintenance of new machinery and equipment.
  • Purchasing technology or intellectual property.

Other activities that are in line with the overall objectives of the programme will also be considered. Applications must score highly against set criteria to be recommended for funding. The criteria will be scored out of 100 as follows:

  • The extent to which your project represents a transition or expansion of your business’ operations or; activities to higher value-added or more knowledge intensive manufacturing (25 points).
  • The level of net economic benefit your project will generate (25 points).
  • The value for money offered by your project (20 points).
  • A demonstrated capacity and capability to carry out the project (20 points).
  • The expected productivity improvements your project will achieve (10 points).

How does the grant impact your R&D Tax Incentive claim?

Successful receipts of this program may be required to make clawback adjustment (reduction) to their R&D tax incentive.  Applicants are encouraged to seek advice on the commercial implications of the grant may affect any current or future R&D tax incentive claims.

For more information, or to find out if you may be eligible for this grant and how it will affect your claims under the R&D tax incentive, contact  one of our specialist advisers.


Australian Manufacturing