These budgets not only demonstrate the respective State Governments' dedication to fostering growth and development across key sectors, but also emphasise the alignment of state and territory grant programs with national domestic priorities, such as the renewable and clean energy transition and the reshoring of manufacturing to enhance sovereign capabilities.
Building upon the initiatives outlined in May’s Federal Budget and the newly legislated National Reconstruction Fund, State Governments are actively bolstering grant programs and incentives to support emerging industries. However, it is important to recognise the nuanced funding landscape that is taking shape, as each State responds differently to their budgetary environments and future-focused objectives.
In the pursuit of fostering growth in emerging industries, State Governments across Australia are forging ahead with ambitious funding allocations. However, the diversity of financial circumstances among the states results in variations in the scale and breadth of support provided. While several states with budget surpluses are actively expanding their grants and support systems to stimulate new sectors, Victoria is grappling with significant deficits, prompting a narrower scope and a highly targeted approach to support initiatives.
Consequently, businesses and organisations operating in Victoria must navigate a more competitive landscape to secure funding. Furthermore, with Federal programs currently offline since last year's election and a comprehensive review of New South Wales’ programs by NSW Treasury underway, we anticipate a surge in competition driven by pent-up demand once Federal programs become available again. Therefore, it is crucial for entities planning investments in priority sectors to proactively develop their grant strategies in order to be ready with a compelling response once the newly announced Federal programs open.
State Industry Support
Western Australia
With Western Australia on track for a $3.3b surplus in 2023-24, the Government has announced new measures to tackle climate change as well as continued funding to industry programs. The focus under the WA Jobs Plan is on creating long-term jobs while diversifying the WA economy, and drive new job opportunities in high tech manufacturing, clean energy, agriculture, tourism and defence.
Western Australia Industry Funding
- $3b towards WA’s transition to cleaner, reliable and affordable energy, and to take action on climate change. This includes pre-allocated funding towards critical infrastructure required to decarbonise the electricity grid and replace the State’s coal-fired power stations.
- $40m Sustainable Geoscience Investments package to accelerate critical minerals discoveries, to help meet demand for minerals used in new battery technologies.
- $15m additional funding for tourism initiatives, including attracting additional major and business events to Perth.
- $195m over three years to the Collie Industrial Transition Fund and the Collie Futures Fund to support the transition of the Collie economy from its coal dependence.
- $200.7m over three years remains of the $285 million Investment Attraction Fund to support and attract investment in new energy industries.
- $9.1m expansion over two years for the New Industries Fund, to drive innovation, develop and attract entrepreneurs, create jobs, and deliver targeted support for female and Indigenous founders and businesses seeking to commercialise products.
- $10m addition over two years for hydrogen-fuelled transport, and $3m addition over two years for renewable hydrogen initiatives, which includes a refresh of the WA Renewable Hydrogen Strategy.
- $6.6m over the forward estimates for the Food and Beverage Value-Add Fund to support agriculture, food and beverage businesses to expand, diversify or relocate their value-add processing operations in Western Australia.
- Additional industry development includes: attracting common user infrastructure from the Commonwealth Government through key initiatives such as the National Reconstruction Fund; growing the States’ advanced manufacturing capabilities; developing local iron ore railcar wagon manufacturing and wind turbine manufacturing industries; advancing defence and space industries; supporting three new early-stage venture funds (Purpose Ventures Fund, FundWA and Quokka Capital); developing partnerships with airlines under the Aviation Recovery Fund; and implementing a Health and Medical Life Science Industry Strategy.
Victoria
Victoria is focused on balancing its debt while delivering on funding election commitments. The Budget indicates that grant expenses are forecast to fall over FY24 due to reductions in pandemic support. Highly targeted industry investment is focused on backing the manufacturing industries while supporting jobs, skills training, and incentivising tourism attractions.
Victoria Industry Funding
- $21.2m over two years to establish a Manufacturing and Industry Sovereignty Fund, which would provide grants to support the development, expansion and retention of Victoria’s strategic manufacturing capability. This also includes support for Victorian businesses to access the Commonwealth’s $15b National Reconstruction Fund.
- $15m Industry R&D Infrastructure Fund to incentivise private industry investment into research and development, and complement the Commonwealth’s existing R&D tax incentive.
- $31m to back producers in the food and beverage industry with continued grant programs for producers; and further funding for scholarships for hospitality workers, a farm safety and wellbeing program, and funding for pests and weed management.
- $5m additional funding to the Alice Anderson Fund, which supports women-led start-ups to leverage private sector capital. In FY24 the Fund expects to support 30 female founder equity investments.
- $4m over the next two years to support Victoria’s defence and space industry and supply chains to secure major defence contracts through advocacy, advisory and capability development.
- $20m additional funding to the International Investment Attraction Fund by targeting the world’s most innovative companies and projects to support economic development and create high-value Victorian jobs.
- More than $900m into medical research and $12m additional funding to continue supporting the growing mRNA industry to develop life-saving therapies in Victoria.
- $23m expansion to the Major Events Fund promoting Victoria’s calendar of events and strengthening the State’s position as the nation’s top location for major events.
- Various skills and training support, including the Digital Jobs for Manufacturing program which provides businesses with grants for their employees to develop in-demand skills like robotic process automation and data analytics.
- $34.7m on cyber security reform, which includes development of a new Cyber Defence Centre.
- Continued support for the $2b Breakthrough Victoria Fund, which provides additional investment and support to five future-focused industries: advanced manufacturing, agri-food, the clean economy, digital technologies, and health and life sciences. In FY24, the Fund expects to support 15 companies/consortia.
Northern Territory
The Northern Territory budget delivered a record $2.1b spend on infrastructure, which pushes out the timetable for a return to surplus by FY27. Industry investment, from a grant perspective, focuses on investment attraction, advanced manufacturing and tourism.
Northern Territory Industry Funding
- $24.1m to support Investment Territory to facilitate major projects and private sector investment
- $4.6m over three years to accelerate development of the hydrogen industry and $7.3m over two years for the Renewable Remote Power Program which includes renewable hydrogen trials to continue delivering clean and reliable electricity to remote communities.
- Continued support for the Local Jobs Fund which provides Territory businesses with access to capital to help them expand and create opportunities to generate local jobs. This includes a priority sector collaborative grants program providing up to $1m in matched funding to deliver common-use infrastructure, services or data.
- Continued support for the Northern Australia Infrastructure Facility, with investment from the Commonwealth Government, as a loan program for businesses looking to deliver small-scale projects across the NT. The aim of the loan program will be to expand infrastructure and improve economic outcomes, including for Indigenous Territorians.
- Continued support for the Advanced Manufacturing Ecosystem Fund NT, a grant program that provides matched funding of up to $500k to SME manufacturing enterprises to grow.
- $2.5m over two years for circular economy programs, which includes the Transformational Circular Economy Infrastructure Grant, providing grants of up to $500,000 for infrastructure projects with a focus on repurposing construction, demolition, food, garden and organic waste.
- Tourism support, including $1m for round six of the visitor experience enhancement grant program where Territory operators can receive up to $100k in funding to upgrade their visitor experience; and $2.2m to continue tailored tourism business support programs
Tasmania
Tasmania’s economy has slowed as inflation increases nationally. Focus is limited beyond health, education and road and transport infrastructure. Industry support is modest and highly targeted. These include:
Tasmania Industry Funding
- $2m over two years funding to the Tasmanian Institute of Agriculture, through the Agricultural Innovation Fund, to undertake agricultural research, development, extension and education.
- $3.75m over two years to deliver the Renewable Energy Agenda, which includes Project Marinus (the electricity and telecommunications interconnector between Tasmania and Victoria), onshore and offshore renewable energy developments, Battery of the Nation projects and the implementation of Renewable Energy Zones in the State.
- $5m to the Tasmanian Active Infrastructure Grants Program, which will provide grants to the sports and recreation sector to build new, and upgrade existing, sport and recreation infrastructure over two years. It builds on the success of the Leveling the Playing Field and Improving the Playing Field grant programs, which provided up to $500k per project to upgrade amenities at sporting facilities around Tasmania.
- $500,000 to support the Tasmanian Defence Industry Strategy, which aims to further grow the State’s defence industry activities, including a refresh of the existing defence strategy. A Defence Advocate will also support existing and prospective defence industry businesses to grow the State’s contribution to defence industry markets. Other defence support also included a $5m grant awarded to the Elphinstone Group for international defence infrastructure.
- $425,000 to support the Small Business Growth Strategy Grants program.
- $390,000 to support the Accelerating Trade Program.
For more information or support in accessing these initiatives, including developing your grant strategy and readiness response, please reach out to our team below.
