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Modern Manufacturing Initiative: there is $1.3bn up for grabs
The first three National Manufacturing Priorities considered for Round 1 grant funding from the MMI are Space, Medical Products, and Resources Technology and Critical Minerals Processing, with Round 1 applications for these closing March 22, March 29, and April 1, respectively.
Funding for the other three priority sectors will open soon and similarly have a short 4-week period in which to submit Round 1 grant submissions.
Could this funding for the government’s National Manufacturing Priorities be destined for one of your company’s projects?
In the Modern Manufacturing Initiative the Australian Federal Government has been steadily releasing the “road maps” that set out a ten-year vision for each of its six National Manufacturing Priorities, forming an integral part of the transformative Modern Manufacturing Strategy for building Australia’s reputation as a reliable and high-value manufacturing nation.
Space was the first of the six National Manufacturing Priorities to have its road map released, and the remaining road maps are being released to coincide with the opening of their respective MMI funding rounds.
- The remaining National Manufacturing Priority road maps cover the following areas:
- Medical Products
- Resources Technology and Critical Minerals Processing
- Food and Beverage
- Recycling and Clean Energy
Modern Manufacturing Initiative funding of $1m to $20m will be provided on a co-investment basis (covering up to 50% of project costs) for projects with greater than $2m eligible expenditure.
- The MMI will initially provide co-funding for manufacturing projects across the following 2 of the 3 targeted manufacturing streams:
- The manufacturing translation stream to help Australian manufacturers translate high quality research and ideas into commercial outcomes; and
- The manufacturing integration stream to help Australian manufacturers access domestic and global supply chains and produce and distribute quality products and high value services into them.
Expressions of interest for the larger Collaboration stream will open in the coming months.
For the Modern Manufacturing Initiative’s Translation and Integration Stream grant opportunities approximately $140 million is available for 2020–21 to 2023–24, across the six National Manufacturing Priorities. So even if you’re not currently eligible for the current round of funding, it’s worthwhile keeping the MMI in mind because your company’s circumstances may change and you can be prepared to take advantage of this huge $1.3 billion boost for Australian manufacturers.
Are there any other grants, funding, or incentives that my manufacturing business can take advantage of?
The Modern Manufacturing Initiative is certainly the centrepiece of the government’s drive to keep our manufacturing IP and capability here in Australia. If you’re an Australian manufacturer it’s a case of “watch this space”. The government has seen the strategic importance of Australia not being overly dependent on foreign manufacturing and for manufacturing to return onshore and be a significant part of the economic mix. Some other current manufacturing grants and initiatives of note include:
- Global Innovation Linkages Program: a total amount of $9 million with grants of $500k–$1million (closes April 7)
- Advanced Manufacturing Early Stage Research Fund (AMESRF): a total amount of $4 million, with grants estimated to be $100k–$400k (closes May 10)
And of course, there’s the R&D Tax Incentive which, whilst not specifically targeted at manufacturing, is one of the longest running and most dependable R&D funding programs for Australian businesses. Plenty of companies in the manufacturing sector have benefitted enormously from this initiative — particularly SMEs , with a refundable tax offset being offered to start-ups in a lossmaking position that are performing eligible R&D activities.
Regardless of whether your expertise is in Manufacturing, R&D, or some other innovative activity, Fullstack has the expertise to ensure you obtain all the grants, incentives, and rebates you’re entitled to.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, crypto and entrepreneurs.