Grants of up to $250,000 are available to for Victorian manufacturers to capitalise on opportunities to produce products or components that support the transition to decarbonisation and net zero emissions.

Deadlines and Timings

Applications close on 16 November 2022 at 5PM AEDT.

Projects will be expected to commence within 60 days of execution of the grant agreement.

Successful applicants will need to complete the project activities within 12 months of the date of the grant agreement.

Overview and Grant Amount

The Low Carbon Manufacturing Grant Program – Business Growth Stream (the program) has a grant funding of between $50,000 and $250,000. All grants must be matched by a minimum cash co-contribution of $2 for every $1 granted. Up to $3 million is available for allocation under this program to:

• advanced manufacturing capability to make components and products to support the transition to net zero emissions
• productivity and scale to produce renewable energy and low carbon components and products

The following outcomes are expected of projects funded under this program:

• more low carbon components and products are made in Victoria to support decarbonisation of the economy
• improved capability of Victorian manufacturers to make components or products to support the transition to net zero emissions
• increased sovereign capability and resilience in low carbon product supply chain
• Victorian Manufacturers have more capability to participate in low carbon supply chains

Eligibility and Criteria

The program is open to small to medium sized manufacturers with an existing manufacturing presence in Victoria who are on a growth trajectory and require support to access business services, advice, or expertise to capitalise on emerging market opportunities associated with the low carbon economy.

Companies

Applicants must meet the following criteria to be eligible for assistance under the program:

• be an eligible legal entity
• hold an Australian Business Number (ABN)
• be an employing business registered for WorkCover insurance with WorkSafe Victoria
• agree to meet any co-contribution requirements with eligible cash expenditure
• be currently engaged in manufacturing or the manufacturing supply chain or demonstrate a genuine commercial connection to the manufacturing supply chain in Victoria

Trust Structures

An Incorporated Trustee can apply on behalf of a Trust provided that the Trustee:

• will remain sufficiently liable for the performance of any agreement it signs
• has a right to be indemnified from the assets of the Trust
• is indemnified from the assets of the Trust d. comply with the criteria as set out for Companies

Partnerships

The individual Partners may apply on behalf of a Partnership provided that the Partners:

• will remain sufficiently liable for the performance of any agreement they sign
• comply with the criteria as set out for Companies

Ineligible Applicants

• individuals
• Commonwealth, state and local government agencies or bodies
• publicly funded research institutions
• industry associations or business chambers
• not-for-profit organisations
• community-based organisations
• joint applications

Eligible Activities

Projects

Projects must involve the development or purchase of new equipment, processes, skills, or technology that directly support the making of products or components that will help the Victorian and global transition to net zero emissions. Funding may support but not be limited to:

• the purchase of capital equipment
• technology adoption and associated project expenditure for the manufacture of components and products that support the decarbonisation of the economy

Expenses

Eligible project expenditure includes:

• capital expenditure (e.g., manufacturing machinery, equipment, and technology)
• other project-related non-capitalised expenditure (e.g., related to product and process improvements, evaluation and testing of new products and processes, technology development and supply chain capability development)
• minor building alterations and fit-out costs
• training specific to the technology (external costs only)
• labour and contractors related to the delivery of the project (but do not include internal salaries)
• be incurred by the grant recipient within 12 months of execution of the Grant Agreement
• be a direct cost of the project
• be exclusive of Goods and Services Tax (GST)

Ineligible Expenses

• routine replacement or a minor upgrade of plant and equipment
• purchase of vehicles
• routine operational expenses, including, communications, accommodation, office computing facilities or software, printing and stationery, postage, legal and accounting fees, and bank charges
• costs related to preparing the grant application, preparing any project reports, and preparing any project variation requests
• projects where the primary purpose relates to offshore or interstate manufacturing
• building websites, marketing, sales, and promotional activities
• early-stage Research and Development (R&D) activities
• expenditure that is incurred prior to the project commencing
• internal salaries
• entertainment cost
• land acquisition

For more information, interested parties are encouraged to read the program guidelines and FAQ set by the funding grant. Submissions may be lodged through their online portal.

Expert Assistance

We have 14 years of experience preparing EMDG claims and can assist in making sure you receive your maximum rebate.

Working with us means you get the maximum grant with minimum risk and effort. Our expertise includes R&D Tax Incentive registration and tax schedules, Export Grants, Capital Expenditure and Infrastructure Grants.

Get in touch with us and let’s discuss this more in detail.

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