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Key takeaways:
Many manufacturing grants are competitive, assessed as applications are received, or have limited funding pools. Businesses with planned investments should assess eligibility and start preparing well before deadlines.
Current federal and state programs are supporting manufacturers that invest in cleaner technologies, electrification, automation, digital systems and advanced manufacturing capabilities.
Successful applications require more than a good project idea. Businesses need clear project plans, budgets, funding commitments, supplier information and measurable business outcomes.
For manufacturers planning to invest in new equipment, cleaner processes, advanced technologies or market expansion, grant funding can materially change the timing and scale of a project.
However, the strongest opportunities are often competitive, time limited or assessed as applications are received. Businesses with investment plans should therefore test their eligibility and begin preparing well before a closing date.
Opportunities requiring action now
SME Industrial Decarbonisation Fund
The SME Industrial Decarbonisation Fund provides a significant federal opportunity for small-to-medium Australian manufacturers seeking to replace fossil fuel-powered processes with electric alternatives. The fund focuses on three areas: surface treatment, process steam and metals processing. Eligible projects may include replacing gas-fired curing ovens, gas boilers, furnaces, kilns or other fossil-fuelled industrial equipment with lower-emissions electric technologies.
The program is open until 31 December 2027, but applications are considered on a first-come, first-served basis.
That makes early engagement important. Manufacturers should not treat the published closing date as a reason to delay, particularly where the project requires supplier quotations, emissions calculations, a co-contribution and a clear implementation plan.
Defence industry development grants
Manufacturers operating in defence supply chains should also monitor the Defence Industry Development Grants Program. The program supports Australian SMEs through four streams covering sovereign industrial priorities, exports, security and skilling, with grants of up to $1m depending on the stream and funding of up to 50% of eligible expenditure.
The program is currently transitioning to updated grant opportunity guidelines, with new guidelines and supporting templates expected by 3 November 2026.
Businesses considering a defence-related capability, equipment, security, export or workforce project should use this period to clarify their project and prepare supporting information so they are ready when the updated streams open.
State opportunities to watch
Queensland: Transforming manufacturing grants program
Queensland manufacturers have a near-term opportunity through Round 2 of the Transforming Queensland Manufacturing Grants Program. The program offers matched grants of between $100,000 and $1.5m to eligible Queensland-based manufacturing SMEs investing in advanced manufacturing equipment or software that supports system integration and manufacturing process improvement.
Applications close at 1 pm on 25 November 2026. Applicants are required to define the project, demonstrate funding capacity and respond to competitive assessment criteria, so we encourage manufacturers to act now rather than wait until the final weeks. A prompt eligibility and project review can help determine whether the proposed investment is suitable and what evidence will be needed.
New South Wales: Advanced manufacturing adoption
The NSW Government's Innovative Manufacturing Adoption Fund is being delivered in two stages. Stage 1 supports discovery and feasibility work, while the larger Stage 2 implementation round is expected to open in early 2027. Stage 2 is intended to help manufacturers move from investigation to implementation of advanced technologies.
For NSW manufacturers considering automation, digital systems or other advanced manufacturing investments, now is the time to develop the business case, confirm technical requirements and identify measurable productivity benefits. Starting this work before the round opens can place a business in a stronger position to respond when detailed guidelines are released.
Western Australia: Carbon innovation in heavy industry
Unlike broad manufacturing grant programs, Western Australia’s Carbon Innovation Grants Program is specifically designed to support projects that advance carbon innovation and decarbonisation outcomes. Round 3 is focused on helping heavy industry reduce or offset emissions from industrial processes through feasibility studies, pilot projects and capital works. It is most relevant to emissions-intensive and hard-to-abate activities, including heavy industrial processing and associated plant, machinery and production systems.
Applications close at 5 pm AWST on 11 December 2026. Funding ranges from $50,000 to $500,000 for feasibility studies and from $100,000 to $1.5m for pilot projects and capital works, with different co-contribution requirements. Potential applicants should assess fit carefully and allow time to develop the technical, financial and emissions evidence required.
Other support that can strengthen an investment plan
Grant programs are only one part of the funding landscape. The research and development tax incentive may support eligible experimental activities undertaken to generate new knowledge, products, processes or services. This mechanism has different eligibility rules and should be assessed separately from project grants.
A coordinated funding strategy can be valuable. For example, a manufacturer may undertake eligible research and development activities while separately seeking grant support for later-stage equipment, implementation, decarbonisation or market development. Careful project definition is essential to avoid overlap and ensure each activity is matched to the most appropriate program.
Preparation is often the difference
Competitive applications need more than a good idea. Manufacturers should be ready to explain the commercial need, project outcomes, implementation pathway, budget, co-funding position, supplier arrangements and measurable benefits such as productivity gains, new jobs, export growth, emissions reductions or stronger sovereign capability.
The key message is if your business is planning a major manufacturing investment in the next 12 to 24 months, do not wait for the perfect grant announcement before preparing. Several opportunities are open now, others are approaching and some are assessed progressively. Early advice can help you identify the strongest fit, address eligibility issues and build an application with the evidence assessors expect.
RSM's government grants team can review your proposed project, map it against current and upcoming programs and help you determine the best next step.
Contact us early to allow enough time to assess eligibility and prepare a competitive submission before the relevant deadline or available funding is exhausted.
For further information, please visit our Government Grants Hub or contact Sara Coram at sara.coram@rsm.com.au to discuss how we can support your grant funding opportunities.
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