The Value Add Investment Grants (VAIG) program is aimed at supporting agriculture, food and beverage businesses undertaking value adding in Western Australia (WA) or those seeking to expand in or relocate to WA with grants of up to $750k. The VAIG program comprises two grant streams: (1) Capital Investment stream $750k and (2) Feasibility stream $100k.

Capital Investment Stream $750,000

The Capital Investment stream will support investments in new manufacturing capability or processing facilities, new technology or plant modernisation which result in reducing WA’s reliance on imported products, supports business growth, fosters innovation and creates jobs.

Deadlines and Timings –  Expression of Interest

Expressions of Interest closes on 22 June, 5PM AWST

Successful EOI applicants informed on 18 August

Feedback and advice provided to unsuccessful projects from 18 August

Project refinement & application period (invited applicants only) in 8 weeks

Invited applications close on 12 October, 5PM AWST

Applications assessment & approvals on 12 October to 07 December

Recipients announced on 09 December

Financial Assistance Agreements on December 2022

Projects commence early 2023

Overview and Grant Amount

Available grant funding awards may range from between $250,000 up to $750,000 per grant. Eligible applicants will have a minimum total program budget of $500,000, and must be able to fund no less than 50% of the total program budget in the form of a cash contribution. In-kind contributions will not be accepted as part of the required funding ratio.

The objectives of the Value Add Investment Grants – Capital Investment stream include:

• Build resilience in WA’s food supply chain by reducing reliance on imported (international and interstate) processed food and beverages
• Diversify WA’s economy by supporting value adding agribusinesses that have multi-sector benefits, including ag-tech and food-tech, innovation, and tourism
• Support the scalability of WA’s food and beverage businesses, enabling them to be internationally competitive
• Address market failures, particularly surrounding the current lack of scale, profiling and density of WA’s food and beverage sector, supply chain adjustments
• Develop direct jobs in WA, through supporting capital investment in the agriculture, food and beverage sectors

Eligibility and Criteria

To be eligible to receive a grant, your application must be related to value adding to primary production in WA; and the applicant must meet ALL of the following criteria:

• Be a private sector business (including incorporated trustees), public companies, grower cooperatives, or similar organisations that have an ABN, and are registered for GST
• The project be located in, or looking to relocate to, WA including the Perth metropolitan area
• Be capable of entering into a legally binding agreement with the WA Government
• Have the financial capacity to fund the minimum cash contribution
• Have been in operation for a minimum of two years (or similar established track record)
• Projects commencing no early than January 2023 and can be delivered by the 30th June 2024. and will commence within six months of executing a funding agreement (which will include agreed milestones and project deliverables) with the State.

In addition to the mandatory eligibility requirements, applicants for a Capital Investment grant must:

• Submit an EOI for the intended project
• Receive an invitation from DPIRD to submit a grant application for the project identified within the EOI
• Have completed a business case, feasibility assessment, or de-risk analysis of the intended project

Business clusters, consortiums, and collaborations are also encouraged to apply where a lead business is defined that meets the above criteria and applies and accepts responsibility for contractual obligations on behalf of the business group.

How to apply

Applications will follow a 2-stage process. Apply here. 

Stage 1 will consist of an Expression of Interest (EOI) process which businesses can provide high-level information regarding their proposed project. The Department of Primary Industries and Regional Development (DPIRD) will assess EOI applications and invite selected applicants to submit a full grant proposal in Stage 2.

Only EOI applicants selected by DPIRD will be considered for funding through the VAIG Capital Investment stream.

Eligible Activities

Capital investment funding assistance may be available for new investment or bringing forward planned investment projects in existing businesses that involve value adding post harvest or production, which is defined as any activity that transforms WA primary production from its original or raw form (i.e., commodities) into a state which is perceived as more valuable to the end consumer (i.e., products), thereby accruing higher margins to the producer. This can include:

• Investment in new manufacturing capability or processing facilities, new technology or plant modernisation which results in reducing WA’s reliance on imported products, supports business growth, fosters innovation and creates jobs
• Investment that improve sustainability, reduces the environmental impact of the manufacturing or processing activities being undertaken or contributes to improvements in broader environmental, social, and governance outcomes
• Investment that enables expansion or diversification of business operations that relate to value adding to primary production in WA
• Businesses to relocate operations to, or expand existing operations in WA

EOI Application Information Required

Applicants will be asked to provide a short, compelling summary of their project, the rationale behind it and the intended benefits. The EoI will comprise two sections: (1) business information and (2) project information. Additional details requested will include:

• Estimated total project budget
• Anticipated grant funding request (not to exceed 50% of project budget)
• Project timeline or schedule
• Short description of intended funding plan (e.g., self-funded, private investment, etc.)
• Efforts undertaken (or to be undertaken) to de-risk the project, such as business case, risk analysis and mitigation plan, feasibility assessment, etc.
• Confirmation that the applicant has reviewed eligibility requirements and affirms its ability to provide supporting evidence should the applicant proceed to Stage 2: Grant Application

Applicants that best align to WA’s value add objectives will be invited to submit a full grant proposal for the proposed project.

EOI Eligibility Requirements

EOI applicants will not be required to demonstrate ability to satisfy mandatory eligibility requirements at this stage. However, the applicant will be required to affirm their understanding of those mandatory requirements and understand that they will be able to evidence their ability to satisfy the mandatory requirements should they be invited to the next stage.

Capital Investment Grant Application Eligibility Requirements

In addition to the mandatory eligibility requirements, applicants for a Capital Investment grant must:

• Submit an EOI for the intended project
• Receive an invitation from DPIRD to submit a grant application for the project identified within the EOI
• Have completed a business case, feasibility assessment, or de-risk analysis of the intended project

Eligible businesses are encouraged to read through all the criteria set by this grant, which may be found here.

Expert Assistance

Treadstone experts can help you understand government grants and maximise the benefits for your business. We have been helping clients since 2008 and our clients can testify to our proven success record. 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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