Hunter manufacturers considering automation, advanced machinery or digital production systems can now seek government funding to determine whether the technology stacks up before committing to its implementation.
Applications opened on 20 August for Stage 1 of the NSW Government’s Innovative Manufacturing Adoption Fund, providing $1 million for discovery and feasibility projects.
The wider $6 million fund was announced in the 2025–26 NSW Budget. Its opening now gives eligible manufacturers their first opportunity to apply, with the program divided between the current feasibility stage and a $5 million implementation stage expected to open in early 2027.
Funding the decision before the investment
Stage 1 offers grants of between $10,000 and $50,000, with businesses required to provide at least an equal cash contribution.
Rather than paying for manufacturers to purchase machinery or equipment, the grants are intended to support the work needed to assess an investment before it is made.
Eligible activities include feasibility studies and business case development, pilot projects and testing, assessments of equipment, software or systems, and certification and compliance work.
Projects must involve an external consultant or manufacturing service provider, with at least 75 per cent of the project budget directed towards those external costs. Up to 25 per cent can be used for internal wages associated with delivering the project.
The approach gives manufacturers an opportunity to examine the technical and commercial case for adopting technology before moving into implementation.
Hunter industries fall within eligible sectors
The program covers a range of manufacturing sectors with an established presence in the Hunter.
These include clean energy products, defence and aerospace, mining equipment technology and services, transport and rolling stock, construction and building products, advanced electronics, agriculture, and food and beverage manufacturing.
Technologies that can be investigated through the program include robotics and automation, digital manufacturing and Industry 4.0 systems, additive manufacturing, advanced materials and processing, precision machining, electronics and mechatronics, and advanced quality and inspection systems.
To qualify, a business must be headquartered in NSW and operate a manufacturing facility in the state. Applicants must employ between 10 and 100 full-time equivalent staff and have recorded turnover of at least $1 million in each of the previous two financial years.
A two-stage manufacturing fund
The Innovative Manufacturing Adoption Fund has been divided into two stages rather than requiring businesses to move immediately into technology implementation.
The current $1 million Discovery and Feasibility stage is designed to help manufacturers investigate technology and develop the evidence needed to make an investment decision.
Stage 2 is expected to open in early 2027, with $5 million allocated to support manufacturers implementing technologies and scaling their operations.
Manufacturers do not have to participate in Stage 1 to be eligible for Stage 2. However, applicants for the implementation stage will need to demonstrate a business case for their proposed investment.
The NSW Government says the fund is intended to improve manufacturing capability and productivity and help businesses compete for higher-value work, including through export markets and government procurement.
Applications for Stage 1 close at 5pm on 6 October 2026, or earlier if the available funding is fully allocated.
