The Victorian Land Systems Fund (VLSF) is an initiative that supports small to medium enterprises (SMEs) with grants of up to $100K. One of two VLSF grant streams is the supply chain uplift program (SCUP) that seeks to provide grants for business improvement activities that will enhance the capacity of SMEs to effectively compete for and win contracts with Hanwha, a South Korean global manufacturing company.

Deadlines and Timings

The program is open until 30 June 2024 or until funds have been exhausted.

Projects should take no longer than 12 months to complete.

Overview and Grant Amount

The objectives of the program are to maximise the value of the $1 billion Land 8116 program to the State, by supporting Victorian defence industry businesses to enter Hanwha’s domestic and global supply chains.  Funding will support Victorian businesses to gain relevant accreditations (e.g., ISO 9001), prepare tenders and meet industry specific compliance requirements such as International Traffic in Arms Regulations (ITAR) or the Defence Industry Security Program (DISP).

Funding will support eligible Victorian businesses to:

• gain relevant accreditations and meet industry specific compliance requirements
• prepare tenders
• undertake minor facilities upgrades and equipment fit outs
• develop new or enhance current defence products or services
• undertake defence R&D
• participate in trade missions to pursue collaboration and export opportunities

Grant amounts of between $2,000 and $100,000 (excl GST) are available under this program for the Land 8116 Program. The department will fund 50% of eligible expenditure, up to a maximum of $100,000 (excl. GST) of eligible project costs.  An applicant can apply for 50% of costs up to a maximum of $5,000 (excl. GST) for trade missions to pursue in-country collaboration and export opportunities.

Applicants are required to make a cash co-contribution based on a 1:1 funding ratio. In-kind contributions (i.e., non-monetary resources) are excluded from any calculation of the cash co-contribution. Funds received from other Victorian or Commonwealth Government programs cannot form part of the cash co-contribution.

Eligibility and Criteria

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

• have Hanwha’s support for its application to this program (please note the department may verify your claim with Hanwha)
• be a legal entity with an operating business presence in Victoria
• submit an application for activities linked directly to the applicant’s Victorian business operations
• have an Australian Business Number (ABN)
• be able to meet the required cash co-contribution ($1 for every $1 provided)
• attest that the business complies with all workplace health and safety obligations and meets all industrial relations obligations as an employer

Preference will be given to SMEs seeking to access the program; however, companies with over 200 employees can apply and will be assessed on a case-by-case basis. For the purposes of the Program, an SME is defined as a company with 200 or fewer employees.

Eligible Projects

An eligible project must assist the applicant’s entry into Hanwha’s domestic and/or international supply chains and support the development of the business’ Victorian based operations.

Where an applicant is seeking support to win work in a foreign market, satisfactory evidence must be provided to verify that any direct exports by the applicant will be allowed under relevant Australian and international laws.

For grants to fund the cost of an audit to obtain a certification, funding will only be provided to a grant recipient after it has successfully provided proof of certification.

Eligible Activities

Applicants can apply for funding comprising of several different activities as follows:

• business systems and process certifications
• tender response assistance
• industry specific compliance requirements
• supply chain collaboration activities
• development of defence R&D and technology transfer activities
• product development

Eligible Expenditure

The following are what will be considered for the purposes of the program and for which grant amounts may be available. Applicants should note that all activity costed should be exclusive of GST.

• fee-for-service and related costs of service providers (i.e., consultants, experts, accredited testing bodies, labour and contractors)
• minor building alterations and fit-out costs
• external audits
• software development, customisation, implementation or purchase
• purchase and installation of equipment
• trade missions to pursue collaboration and export opportunities
• defence R&D activity and intellectual property transfer opportunities
• product development

Applicants are encouraged to use Victorian service providers to assist with their project where possible. For more information, interested parties are encouraged to thoroughly read the program guidelines and FAQ set by the funding grant. Submissions must be lodged through the program online portal.

Expert Assistance

We have over 14 years of experience preparing EMDG and R&D tax incentive 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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