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Modern Manufacturing Initiative (MMI)

The new Labor Government is currently reviewing the funding allocations made by the prior Government under this program and many others with a view of redirecting funds into their newly announced $15b National Infrastructure program. Further news will be made available after the October budget.

The $1.3 billion Modern Manufacturing Initiative will drive lasting change for Australian manufacturers.

It will help Australian manufacturers:

  • scale-up
  • collaborate
  • commercialise

It will unlock private sector investment and support manufacturers to deliver on the world stage.

The MMI will provide co‑funding for large manufacturing projects that have broad sectoral benefits across the National Manufacturing Priorities.

There will be no specific business size requirements. Funding will be focused on supporting businesses to scale.

Competitive Grants worth $1.38 billion dollars are split into three funding streams:

  • Manufacturing Translation Stream: helps Australian manufacturers translate high-quality research and ideas into commercial outcomes.
  • Manufacturing Integration Stream: helps Australian manufacturers to access domestic and global supply chains and produce and distribute quality products and high-value services into them.
  • Collaboration Stream: will bring together business, researchers, and investors to build commercial outcomes.

All streams will operate on a co-investment basis of up to 50% of project costs.

The Modern Manufacturing Strategy will focus on areas of comparative advantage and strategic importance in Six Priority Sectors

    1. Space
    2. Medical Products
    3. Resources Technology and Critical Minerals Processing
    4. Food and Beverage
    5. Defence
    6. Recycling and Clean Energy

Manufacturing Translation Stream

This stream helps Australian manufacturers turn good ideas into commercial outcomes.

It aims to:

  • support projects that translate high-quality research into commercial outcomes
  • encourage businesses to adopt new technologies and improve their manufacturing processes
  • support businesses to scale up and become more competitive and resilient.

There will be 6 grant opportunities under the Manufacturing Translation Stream that align with the National Manufacturing Priorities.

What do you get?

Co-funding grants of between $1 million to $20 million, up to 50% of the eligible project expenditure.

Who is this for?

Businesses with projects to translate research into new or improved products or manufacturing processes with eligible expenditure of over $2 million.

The objectives of the Manufacturing Translation Stream are to:

  • support Australian manufacturing businesses and entrepreneurs to translate and commercialise good ideas into new and enhanced commercial outcomes including new high-quality products and services and solutions
  • encourage manufacturers to adopt new technologies and develop new processes and innovative solutions to build scale and capability
  • support Australian manufacturers to grow and build scale and overcome challenges facing their sector (as outlined in the relevant priority road map)
  • create new jobs in the manufacturing sector
  • support Australian manufacturers to pivot to high value-added activities
  • attract investment, including venture capital investment to develop ideas and translate research into commercial solutions and outcomes
  • increase manufacturing capability, expertise and specialisations, business acumen, knowledge diffusion and stimulate innovation in Australian manufacturing
  • grow and support manufacturing networks and ecosystems and increase collaboration.

The intended outcomes of the Manufacturing Translation Stream are to:

  • increase number of businesses and manufacturers translating their research and ideas into commercial products, services and solutions
  • increase investment including from venture capitalists in commercialisation and translation activities, focused in the National Manufacturing Priority areas
  • establish and expand new and existing modern manufacturing businesses in the National Manufacturing Priority areas with sustainable business growth
  • increase manufacturing exports and value of the manufacturing sector to the economy
  • grow high-value skills and jobs in the National Manufacturing Priority areas
  • develop a global and international reputation as a country with a growing modern manufacturing sector and capability.

What are the eligibility criteria?

To be eligible you must:

  • have an Australian Business Number (ABN)
  • be non-tax-exempt
  • be registered for the Goods and Services Tax (GST)

and be:

  • an entity incorporated in Australia, including start-ups and a trading corporation, where your trading activities:
    • 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.

You must also:

  • be able to demonstrate your project aligns with one of the National Manufacturing Priorities
  • have a minimum of $2 million in eligible project expenditure
  • be able to provide evidence that your project is supported by your board (or Chief Executive Officer or equivalent if there is no board)
  • be able to provide evidence that you can meet the costs of the project not covered by the grant funding.

Take a look at the latest Modern Manufacturing Initiative – Translation Stream grant recipients: https://business.gov.au/grants-and-programs/modern-manufacturing-initiative-manufacturing-translation/grant-recipients

Manufacturing Integration Stream

This stream helps Australian manufacturers’ access domestic and global supply chains.

It aims to:

  • support projects that integrate Australian businesses into domestic or global value chains
  • encourage links between local businesses and international firms
  • facilitate product standards, sharing and knowledge transfer.
There will be 6 grant opportunities under the Manufacturing Integration Stream that align with the National Manufacturing Priorities.
 

What do you get?

Co-funding grants of between $1 million to $20 million, up to 50% of the eligible project expenditure.

Who is this for?

Businesses looking to integrate their products and services into domestic and international value chains with eligible expenditures of over $2 million.

The objectives of the Manufacturing Integration Stream are to:

  • support Australian manufacturing businesses and entrepreneurs to participate in local and global value chains
  • encourage manufacturers to adopt new technologies to support entry into new markets with innovative solutions to build scale and capability
  • support Australian manufacturers to overcome barriers that are preventing them from identifying and accessing new value chains (as outlined in the relevant priority road map)
  • create new jobs in the manufacturing sector, by integrating into new local and global value chains 
  • identify opportunities for Australian manufacturing businesses, particularly in the National Manufacturing Priorities, to connect and network with local and global customers
  • increase investment in Australian manufacturing, targeting the National Manufacturing Priorities
  • increase Australian exports through greater participation in global value chains, contributing to Gross Domestic Product
  • increase manufacturing capability, particularly in relation to identifying and participating in, new local and global value chains
  • grow and support manufacturing networks and ecosystems and increase collaboration.

The intended outcomes of the Manufacturing Integration stream are to:

  • increase trade and participation of Australian manufacturers and businesses in local and global value chains and markets
  • grow Australia’s manufacturing capabilities and global reputation as a modern manufacturing nation
  • enhance collaboration throughout the manufacturing sector to support participation in value chains
  • increase global integration and competitiveness of Australian manufacturers
  • increase manufacturing exports and value of manufacturing sector to the economy
  • grow high-value skills and jobs.

What are the eligibility criteria?

To be eligible you must:

  • have an Australian Business Number (ABN)
  • be non-tax-exempt
  • be registered for the Goods and Services Tax (GST)

and be:

  • an entity incorporated in Australia, including start-ups and a trading corporation, where your trading activities:
    • 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.

You must also:

  • be able to demonstrate your project aligns with one of the National Manufacturing Priorities
  • have a minimum of $2 million in eligible project expenditure
  • be able to provide evidence that your project is supported by your board (or Chief Executive Officer or equivalent if there is no board)
  • be able to provide evidence that you can meet the costs of the project not covered by the grant funding.
 
Take a look at the latest Modern Manufacturing Initiative – Integration Stream grant recipients: https://business.gov.au/grants-and-programs/modern-manufacturing-initiative-manufacturing-integration/grant-recipients

Collaboration Stream

This stream will provide funding for very large projects that support business-to-business and business-to-research collaboration.

It aims to:

  • encourage businesses to work together
  • to leverage the strength of the Australian research sector.

What do you get?

Grants from $20 million to $200 million.

Who is this for?

Australian large-scale manufacturers

The Manufacturing Collaboration Stream supports large-scale manufacturing projects with:

  • business-to-business collaboration at their core and/or
  • business-to-research collaboration at their core.

This stream will catalyse long-term transformation in the National Manufacturing Priority areas. It will focus on private and public investment to help create the environment and incentives for Australian manufacturers to:

  • collaborate
  • scale-up
  • move towards higher value-added activities
  • become more competitive.

Applicants should show how their project aligns with the grant objectives.

The objectives of the Manufacturing Collaboration Stream are to:

  • Foster collaboration between businesses, research organisations, investors, and other parties to realise transformation in Australia’s manufacturers towards higher value-added segments of the manufacturing ‘smile curve’
  • Support manufacturers to work together to build manufacturing networks and ecosystems, unlock complementary capabilities, overcome barriers to scale and grow, and access global markets
  • Support long-term job creation and a more highly skilled workforce in the Australian manufacturing sector
  • Increase investment in Australian manufacturing, particularly in high-value-added activities
  • Increase manufacturing capability, business acumen, knowledge diffusion, and expertise.

What are the eligibility criteria?

To be eligible you must have an Australian business number (ABN).

We can only accept applications:

  • where your project aligns with one or more of the six National Manufacturing Priorities
  • with a minimum of $60.6 million in eligible project expenditure
  • where no more than 50% of your project is funded from Commonwealth funding sources
  • where no more than 65% of your project is funded from all government sources (including Commonwealth, State and Territory and local)
  • where your project shows the potential to expand or promote interstate or international trade 
  • where you provide letters of support from your project partners. 

In your application you must also:

  • provide evidence from your board (or chief executive officer or equivalent if there is no board) that the project is supported, and that you can complete the project and meet the costs of the project not covered by grant funding. The evidence of support template must be used.
  • be able to provide a detailed governance plan. The plan must outline the intended arrangements for managing your project and relationships with partners. You must also show why the proposed arrangements are most suitable for your project.
 

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