NSW Launches $6 Million Innovative Manufacturing Adoption Fund
Author: Shaun van Dijk
The Innovative Manufacturing Adoption Fund (IAMF) is now open to NSW based manufacturers and will fund their efforts to investigate and implement new technologies for their operations.
The program will be delivered across two stages, moving from early feasibility and technology assessment through to implementation:
Stage 1 – Discovery and Feasibility: $1 million has been made available with matched grants of $10,000 to $50,000 to help manufacturers engage external specialists to investigate, test and build the business case for adopting new technologies.
Stage 2 – Implementation: A further $5 million funding pool will support manufacturers to implement new technologies and scale their operations. Stage 2 is expected to launch in early 2027, with separate guidelines and details of the size of grants to be released.
Importantly, businesses do not need to participate in Stage 1 to subsequently apply for Stage 2. However, Stage 2 applicants will need to demonstrate a strong business case for their proposed investment.
Provided below are further details on the Stage 1 funding that is now open to applications.
Stage 1 – Discovery and Feasibility (Now Open)
Stage 1 funding is intended to help manufacturers investigate and de-risk potential technology investments before committing to implementation.
Funding
Grants of $10,000 to $50,000 (ex GST).
Funding covers up to 50% of eligible project costs, requiring a minimum 50% cash co-contribution.
Who is eligible?
Applicants must, among other requirements:
be an Australian corporation headquartered in NSW;
operate a manufacturing facility in NSW;
have turnover of at least $1 million in each of the previous two financial years;
employ between 10 and 100 FTE employees;
operate within an eligible manufacturing industry;
currently or potentially supply products or manufacturing services into one of the program's target sectors; and
be pursuing the adoption of an eligible advanced manufacturing technology.
Importantly, Australian subsidiaries of international companies are ineligible.
What technologies are targeted?
Projects must investigate the adoption of one or more of the following technology types:
Robotics and automation
Digital Manufacturing and Industry 4.0
Additive manufacturing
Precision machining
Electronics and mechatronics manufacturing
Advanced materials and processing
Advanced quality and inspection systems.
Which manufacturing sectors are targeted?
The Fund is focused on manufacturers supplying, or intending to supply, several target sectors including:
Construction and building products
Clean energy products
Transport and rolling stock
Defence and aerospace
Health and medtech
Advanced electronics
Mining equipment, technology and services
Agriculture
Food and beverage manufacturing.
What activities will be funded?
Stage 1 requires manufacturers to engage an external consultant or manufacturing service provider to investigate the proposed technology adoption
Potential projects include:
feasibility studies and business case development;
pilot projects, prototyping and process testing;
assessment and testing of new equipment, software or systems; and
assessment of certification and compliance requirements.
For example, a manufacturer could engage an external specialist to assess whether robotics could automate an existing production process, or advanced equipment could enable production of new or higher-value products.
At least 75% of the project budget must relate to external consultant or manufacturing service provider costs. A maximum of 25% of the grant is available for internal wages required to support delivery of the project.
Importantly, Stage 1 does not fund the purchase or lease of equipment, machinery or physical hardware. These purchase and implementation costs will instead be supported under Stage 2.
Key Dates
Applications for Stage 1 are now open. Applications will close 5pm, 6 October 2026.
Importantly, applications are assessed as they are received and funding is allocated on a first-come, first-served basis. With only $1 million available under Stage 1, interested manufacturers should consider applying as soon as possible.
Next Steps
Further details, including guidelines and responses to FAQs, are availablehere.
If you are an eligible NSW manufacturer that is considering an investment in automation, robotics, advanced manufacturing equipment or Industry 4.0 technology, please reach out to our team to find out more about this program and the two grant streams being offered.
Intellect Labs works extensively with manufacturers to identify and secure government funding for technology adoption, innovation and growth projects. We’d be happy to discuss your project and help advise on your alignment and suitability for this latest NSW funding program.