The Victorian Government Manufacturing and Industry Development Fund (MIDF) is now open for applications under the Business Competitiveness Program.
The program aims to create jobs, increase industry competitiveness, and help strengthen local supply chains in traditional and emerging manufacturing sectors where Victoria has competitive advantages.
Grants of up to 33 per cent of eligible project expenditure, up to a maximum grant amount of $500,000, will be allocated on a competitive basis for projects to be completed within 18 months of receiving the grant.
What is the funding for?
Eligible projects for the Manufacturing and Industry Development Fund include the purchase and commissioning of capital equipment, manufacturing product and process improvements, prototyping, evaluation and testing of new products and processes, and supply chain capability development. Further details can be found in the program guidelines linked below.
Eligibility – who can access the Manufacturing and Industry Development Fund grant?
Companies: Applicants must meet the following criteria to be eligible for assistance under the program:
- Be a legally structured business registered in Victoria with an Australian Business Number (ABN)
- Agree to meet any co-contribution requirements with eligible cash expenditure
- Agree to meet all industrial relations obligations as an employer in accordance with the National Employment Standards
- Have an operating presence in Victoria
- Be currently engaged in manufacturing or the manufacturing supply chain or demonstrate a genuine commercial connection to the manufacturing supply chain.
- Employ at least 20 FTE* (full-time equivalent) staff or have an annual turnover of greater than $1.5 million (preference will be given to applicants that employ less than 200 people)
- Agree to conduct the majority of proposed activities in Victoria
- Provide financial reports for the last three financial years to enable the Department of Jobs, Precincts and Regions (the Department) to conduct a financial risk assessment (FRA).
- Agree to participate in future program evaluation activity.
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
- Comply with the criteria as set out for Companies under items 2) to 9) above.
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 under items b) to i) in 3.1.1 above.
Ineligible applicants: The following are not eligible to apply:
- Commonwealth, state and local government agencies or bodies
- Publicly funded research institutions
- Industry associations
- Not-for-profit organisations
- Community-based organisations.
How much funding can I get?
The Manufacturing and Industry Development Fund provides grants of up to 33 per cent of eligible project expenditure allocated on a competitive basis. The maximum grant amount is $500,000 and the minimum grant amount is $50,000. For example, a $900,000 project where capital equipment is purchased and implemented may be eligible for a grant amount of $300,000.
Applicants will be required to provide quotations and estimates in support of their applications. Funding will not be provided for retrospective activities, i.e. where project expenditure is incurred prior to receipt and acceptance of a letter of offer. Applicants that commence their projects prior to execution of a grant agreement do so at their own risk.
All grants require a minimum co-contribution from the applicant of 67 per cent of total eligible project expenditure. In-kind contributions are excluded (i.e. non-monetary resources). Funds from other Victorian or Commonwealth Government programs cannot form part of the co-contribution.
Full project expenditure, including grant funding and co-contribution funding, must be spent on eligible project activities detailed below.
The Manufacturing and Industry Development Fund is a competitive program and successful applications will be required to rate highly against the program’s assessment criteria compared to other applications.
Applicants are required to submit an online application. All questions in the application need to be completed to proceed to assessment.
Applications will be assessed against the following assessment criteria and scoring:
- Need for Government support (score 30% )
- Demonstrate why Government support is necessary for stated outcomes being realised, including outlining other funding options that have been pursued.
- If the applicant’s annual turnover is more than $100 million, the applicant will need to demonstrate a compelling argument about why Government support is needed.
2. Job creation (score 30%)
- Outline the number of sustainable, new FTE jobs generated by the project and the timeline for job creation.
3. Other benefits (score 25%)
- Demonstrate that the activity will enhance the competitiveness of the business and/or
- Activity will enhance the competitiveness of the sector or supply chain and/or
- Activity will contribute to broader social and environmental objectives.
4 .Capacity and capability to successfully implement the project (score 15%)
- Outline the track record of the applicant in delivering grant projects (if applicable) and the resources to be allocated to the project.
- Outline how the project will be implemented to meet the project deliverables and milestones.
Further information may be sought from applicants if required.
To be competitive an application must address each assessment criterion and make the best possible case for funding. Claims made against each criterion must be substantiated and full details of all underlying risks and assumptions should be clearly stated.
Under the Manufacturing and Industry Development Fund, the Business Competitiveness Program is delivered in competitive funding rounds. There will be up to two funding rounds per calendar year, with opening and closing dates for the coming year publicised on the Business Victoria website at business.vic.gov.au/bcp. Applications will only be accepted when a funding round is open.
Closing date for Round 1: 20th June 2021.
A second round to open later in 2021 (August–September)
How to apply
The electronic application form is available on the Business Victoria website at business.vic.gov.au/bcp. Applications can only be made using this electronic form and must be submitted online. Printed, facsimile, posted or other methods of delivery of the application form will not be accepted.
For expert assistance with your Manufacturing and Industry Development Fund application contact Treadstone for a confidential discussion.
Applications for the first funding round are now open, with a second round to open later in 2021 (August–September)
All applications must be accompanied by a project plan.
A template providing guidance about information the project plan should include is available at business.vic.gov.au/bcp.
Applicants will be required to provide the following additional supporting documentation:
- Audited Financial Reports for the past three years (including Profit & Loss, Balance Sheet and notes to the accounts)
- Management or interim accounts for the current year, if the most recent Financial Report is more than 6 months old
- Business plan incorporating financial projections (Profit & Loss and Cash Flow)
- Evidence of co-contribution
The cash flow projections should include project expenditure and project funding as separate items in cash outflow and inflow. The financial projections should cover the life of the project and should reflect the financial benefits expected to be generated from the project. A template providing guidance on the Profit and Loss and Cash Flow projections is available at business.vic.gov.au/bcp.
It is the applicant’s responsibility to ensure all requested documentation is supplied to the Department within the required timeframes. Failure to do so may result in the application being deemed ineligible.
We provide expert advice and deliver professional grant applications. Allow us to manage this aspect of your business while you stay focussed on your core business.
To see if you may be eligible for R&D Tax Incentive, Export Market Development Grants (EMDG), or Innovation grants please follow the links below:
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Call us to find out what other grants you may be eligible for on 03 90085937 or email.