Australian Government pledges $50m to bolster supply-chain capabilities

The federal government’s Supply Chain Resilience Initiative provides funding of up to $2 million to help manufacturing and related businesses establish or scale a manufacturing capability or related activity that addresses supply-chain vulnerabilities for a critical product or input, as identified in the Sovereign Manufacturing Capability Plan. https://www.industry.gov.au/data-and-publications/sovereign-manufacturing-capability-plan-tranche-1

In this round of funding under the Initiative, applications are sought from businesses in two key areas: biopharmaceuticals; and agricultural production chemicals.

Firms manufacturing these products as well as companies within the manufacturing supply chain of these products can apply for grants of between $50,000 and $2 million. The funds can be used to build manufacturing capability through co-investing in new equipment, technology, skills and processes.

Applicants should demonstrate ways in which their project:

builds a better understanding of critical supply chains;
works with industry to identify supply options to address vulnerabilities; and
addresses vulnerabilities identified in the Sovereign Manufacturing Capability Plan by incentivising Australian businesses to invest in capabilities through new equipment, technology, skills and processes.

Eligibility criteria

To be eligible, a business must:

have an Australian Business Number (ABN)
be non-tax-exempt
be registered for the Goods and Services Tax (GST)
be an entity incorporated in Australia and a trading corporation

If you are a trading corporation, your trading activities must:

form a sufficiently significant proportion of the corporation’s overall activities as to merit it being described as a trading corporation; or
are a substantial and not merely peripheral activity of the corporation.

Eligible projects

For your project to be eligible, your application must show:

a minimum of $100,000 in eligible project expenditure;
that you are a business manufacturing one of the critical product categories identified in the Sovereign Manufacturing Capability Plan – that is, either biopharmaceuticals or agricultural production chemicals; or a business that is part of the manufacturing supply chain of one of these products;
that your project addresses supply chain vulnerabilities associated with these critical product categories;
evidence from your Board (or CEO or equivalent, if there is no Board) that the project is supported;
that you can complete the project and meet the costs of the project not covered by grant funding; and
how you will provide your share of project costs. (Note: The accountant declaration template is designed to help applicants confirm that they can fund their share of project costs, including any ineligible expenditure.)

Further information and grant applications

Before you apply, it is recommended that you read the guidelines and the sample agreement. NOTE: Applications must be received by 5pm AEST on 12 Aug 2021

For further information or help with an application, contact the Department of Industry, Science, Environment and Resources (DISER) or phone them on 13 28 46 (Monday to Friday, 8am–8pm across Australia).

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