Questions about the program

What is the Industry R&D Infrastructure Fund?

The Industry R&D Infrastructure Fund is a $15 million Victorian Government initiative established to incentivise businesses to make new investments in R&D infrastructure to support the effective development of Victoria’s R&D capability in key industry sectors and increase Victorian business expenditure on R&D.

Grants of between $250,000 and $2 million are available to eligible Victoria businesses on a cash co-contribution basis (minimum of 1:1 ratio) and will cover up to 50% of eligible project expenditure. The minimum eligible project expenditure considered is $500,000.

The benefits created by the funding can be to a business, or to an industry, or to both, but must be able to show how the project will increase Victoria’s R&D activity in the longer term.

The Fund will support new R&D infrastructure projects aligned to Victoria’s priority industries as identified in the Made in Victoria: 2030 Manufacturing Statement:

  • new energy technologies, including wind, hydrogen, solar and batteries
  • health technologies, including medtech, biotech, pharma and consumer healthcare
  • food manufacturing and agriculture
  • defence, aerospace and space
  • digital and advanced technologies, including advanced materials, robotics, AI (Artificial Intelligence), 3D-printing, and quantum technologies.

Projects aligned to other industry sectors may also apply for funding.

To support business investment in R&D as a key driver of innovation and economic growth, the Fund will:

  • directly support industry investment in new or enhanced R&D infrastructure that will support increased R&D activity
  • enable high quality collaboration and mutually valued research between industry, universities and/or research providers
  • deliver broader spill-over benefits from the investments, particularly in manufacturing, strengthening supply chains and in up skilling the workforce, with a focus on priority industry sectors.

What is R&D infrastructure?

R&D infrastructure comprises (but is not limited to) a range of sophisticated equipment and services enabling leading-edge science, research and innovation in any discipline. It encompasses a broad range of technology platforms, such as for:

  • genomics analysis used in agriculture and human health
  • the fabrication, testing and advanced engineering of new/novel and unique materials and devices
  • imaging technology used to analyse materials and molecular structures
  • optical and radio-telescopes used in astronomy
  • design and build of specialist machinery, or modification of existing equipment
  • building new or modification of existing buildings for specialist manufacturing activities (i.e. clean room for medical device manufacturing)
  • innovation regarding environmentally friendly processes, such as significant reduction of waste
  • set-up new or upgrade existing R&D equipment/suite of equipment, to provide service across the priority sectors (i.e. R&D service for material testing, engineering prototyping, product verification and/or validation).

It also includes underpinning capabilities, such as data collection and analysis.

This infrastructure can be directed to be operated by a single applicant for its own use or as collaborative, cross-disciplinary and networked facilities that provide technologies to a range of users from many organisations.

How does this fund differ from the Australian Government's R&D Tax Incentive?

The Industry R&D Infrastructure Fund is designed to complement the Australian Government's R&D Tax Incentive program by directly supporting business investment in R&D infrastructure and/or technology. Note that approval for funding is independent of and does not guarantee entitlement to the tax offset under the R&DTI.

Applicants are responsible for seeking specialist advice concerning any implications of grant funding towards future tax claims under the R&DTI tax initiative or their companies tax status. Further details on the R&DTI can be found on the business.gov.au website.

Questions about eligibility

What businesses are eligible to apply?

The Industry R&D Infrastructure Fund is open to:

  • businesses that have identified key R&D equipment/infrastructure that will support their R&D activities and anchor their operation in Victoria
  • businesses that provide R&D services.

To be eligible, companies will need to:

  • be a legally structured business registered in Victoria with an Australian Business Number (ABN), with a minimum 3 year trading history
  • have an operating presence in Victoria
  • employ at least 20 full-time equivalent (FTE) staff or have an annual turnover greater than $1.5 million.

Businesses who do not fit the eligibility criteria but have a project which aligns with the objectives of the program should contact the program team by visiting the Contact us page.

An Incorporated Trustee can apply on behalf of a Trust provided that the Trustee:

  • will remain sufficiently liable for the performance of any agreement it signs
  • can meet the above eligibility criteria.

Individual Partners may apply on behalf of a partnership provided that the partners:

  • will remain jointly and severally liable for the performance of any agreement they sign
  • can meet the above eligibility criteria.

What businesses are not eligible to apply?

The following entities are not eligible to apply:

  • individuals
  • commonwealth, state and local government agency or body established under the Public Administration Act 2004 (VIC) or equivalent legislation of another Australian jurisdiction
  • company not incorporated in Australia
  • unincorporated association, committee or collective
  • community-based organisations
  • academic institutions, public sector research providers or universities (but these are eligible to be project partners)
  • organisations currently involved in litigation against the State Government of Victoria or the Australian Government.

Are joint applications acceptable?

Yes, provided they have a lead applicant who is both the primary project proponent and an eligible applicant. The lead applicant will be subject to a financial risk assessment and all participating businesses will be subject to probity checks.

Both applicants may contribute to project expenditure to meet any co-contribution requirements.

Can R&D service providers apply?

Yes, R&D service providers are eligible to apply and will need to meet the other eligibility requirements.

Are interstate companies eligible to apply?

Yes, interstate companies can apply if their project is to be in Victoria and meets the objectives of the Fund and the company meets the other eligibility criteria.

Are international companies eligible to apply?

Yes, international companies can apply if their project is to be in Victoria and meets the objectives of the Fund and the company meets the other eligibility criteria including having an ABN and a presence in Victoria.

Can the lead applicant be the parent company of another company in which the R&D project will reside?

Yes, it is possible for the lead applicant to be the parent company of the subsidiary where the R&D project will reside.

Can government entities apply for the fund?

No. Australian, state and local government agencies or bodies established under the Public Administration Act 2004 (VIC) or equivalent legislation of another Australian jurisdiction are not eligible to apply for the Fund.

Government entities, however, are eligible to be a project partner for a lead applicant who meets the eligibility criteria laid out in section 4.1 of the program guidelines.

Can Victorian Medical Research Institutions apply for the fund?

Victorian medical research institutes are unlikely to be considered eligible lead applicants but may participate in projects as partner organisations. Many Victorian medical research institutes receive support for the indirect costs of conducting research through the States Operational Infrastructure Support program and other Government programs designed to assist in the purchase of research infrastructure.

Is it a requirement for my project to have a project partner or be part of a consortia to be eligible to apply?

No, applicants are not required to have a project partner or set up a consortium, however, proposed projects will need to meet the eligibility requirements and program objectives.

Can research institutions and universities be project partners and/or members of a consortia?

Yes, academic institutes, public sector research providers and universities are eligible to be a project partner or part of a consortia.

My business does not meet the eligibility criteria. Can we still apply?

If your business does not fit the following eligibility criteria, you may still be able to apply:

  • employ at least 20 full-time equivalent (FTE) staff or have an annual turnover greater than $1.5 million and less than $100 million.
  • have a minimum 3-year trading history

Businesses who do not fit the above eligibility criteria but have a project which aligns with the objectives of the program should contact the program team by visiting the Contact us page. An alternative EOI application form will then be provided which your business can use to apply.

DJSIR advises that businesses consider whether their application strongly aligns with the Industry R&D Infrastructure programs objectives and assessment criteria outlined in the program guidelines before applying.  

Please note that applicants that do not meet all the above criteria may still submit an application but will need to provide a compelling case as to why the eligibility criteria should be waived. Decisions in considering applications from businesses that do not meet the above eligibility criteria are at DJSIR’s and the Minister’s discretion. Any decisions to allow applicants to submit an application does not constitute an assessment of the overall quality of the project nor the likelihood of being successful in receiving funding.

Does the turnover threshold include the businesses aggregated turnover?

No, the turnover threshold requirement in the eligibility criteria only refers to the turnover of the business that is submitting the EOI application.

Is a business permitted to submit multiple applications assuming the total of all projects does not exceed the $2 million upper limit?

Yes, that is possible. However, we advise that applicants consider the likely assessment of smaller projects against larger projects. If the R&D infrastructure is going to be situated in one location and separate R&D infrastructure is being sought, then it may be better to provide a consolidated application.

Do the customers of R&D services, i.e., the service “buyers” have to be from Victoria to be considered to contribute to Victorian BERD?

No, the R&D customers that use the R&D infrastructure funded by the Industry R&D Infrastructure Fund do not have to be from Victoria. R&D customers that use the R&D infrastructure can be based in Victoria, interstate or internationally.

Questions about the applications / assessment process

What are the key dates for the Fund?

The indicative key application and assessment dates for the Industry R&D Infrastructure Fund are:

  • Stage 1: Expressions of Interest open on 6 July 2023
  • Stage 1: Expressions of Interest close at 5pm on 18 August 2023
  • Stage 1: Expression of Interest assessment and approval process August/September 2023
  • Stage 2: Invitation to apply to 2nd stage from 18 September 2023
  • Stage 2 applications close late October 2023
  • Stage 2 assessment and approvals process October 2023 to January 2024
  • Projects commence: approximately February 2024
  • Program end: 30 June 2025

Applications will only be accepted as per the prescribed dates.

How do I apply?

There is a two-stage application process:

  • Stage 1: Expression of Interest, followed by
  • Stage 2: An invitation by the Department of Jobs, Skills, Industry and Regions (DJSIR) to submit a formal application.

Expressions of Interest should be lodged online via the program page.

All sections of the Expression of Interest form must be completed in full.

Completing the application process in a Google Chrome web browser is recommended.

For further enquiries please visit our Contact us page.

Can I submit a late Expression of Interest?

No, late Expressions of Interest will not be accepted.

Can I have a call with the Program Manager to discuss our potential project?

No, the Industry R&D Infrastructure Fund Program team will not consider any requests for a call with potential applicants while EOI applications are open. The Program team, however, can be contacted by visiting the Contact us page.

What documents will I need to submit if I am invited to the Stage 2 application process?

If your Expression of Interest is successful, you will be invited to provide the following additional documentation as part of Stage 2:

  • application form
  • detailed project plan, including additional outcomes resulting from the project (including quotations from supplier/s to support estimated costs (a project plan template will be provided)
  • a detailed project budget, set at quarterly intervals across the planned grant period
  • evidence of capital to support the cash co-contribution to the project (evidence includes cash in the bank, statutory declaration from the CFO/CEO of committed funds)
  • audited Financial Reports for the past three years (including Profit & Loss, Balance Sheet and notes to the accounts). Note, if the applicant’s financial reports are not audited, unaudited financial reports, can only be accepted if they have been prepared by an accountant registered on the Tax Practitioner Board
  • management or interim accounts for the current year, if the most recent Financial Report is more than 6 months old
    • the cash flow projections must include project expenditure, capital expenditure and project funding as separate items in cash outflow and inflow.
    • the financial projections should cover the life of the project and should reflect the financial benefits expected to be generated from the project. A template providing guidance on the Profit and Loss and Cash Flow projections will be available
  • business plan incorporating financial projections (Profit & Loss and Cash Flow) and expected expenditure plans related to delivery of the project
  • risk management plans for delivery of the project, including risks associated with climate change, and
    letters of support where relevant, for example from potential clients, partners, local councils, and relevant associations may be included.

Applicants will have approximately five (5) weeks to provide this additional documentation.

It is the applicant’s responsibility to ensure all requested documentation is supplied to DJSIR within the required periods. Failure to do so may result in the application being deemed ineligible.

Can I apply at Stage 2 if I haven’t submitted an Expression of Interest?

No, you will need to ensure you submit your Expression of Interest by the closing date of 18 August 2023.

How quickly will I find out the outcome of my Expression of Interest?

Businesses should expect to learn the outcome of their Expression of Interest within approximately 5 (five) weeks of submission.

If my Expression of Interest is unsuccessful, can I resubmit a new Expression of Interest?

No, decisions on whether Expressions of Interest are successful are final.

Does an invitation to submit a full application at Stage 2 mean my application for funding will be successful?

No, applications that are invited to apply to the Stage 2 process will be further assessed against the selection criteria.  This does not guarantee your project will be funded.

What is the assessment process?

There is a two- stage assessment process.

Stage 1:

All Expressions of Interest will be assessed against the eligibility and assessment criteria and their ability to meet the objectives of the program.

Applicants will be advised of the outcome of their Expression of Interest by email and successful applicants will be invited to apply to the Stage 2 process where they will be required to provide a full application.

Stage 2: Stage 2 applications will be further assessed against the assessment criteria.  The assessment panel will:

  • review and score applications individually against the assessment criteria
  • rank all projects against each other
  • determine the number of applications that will be recommended subject to funding being available
  • recommend the applications for approval.

A financial risk assessment will also be undertaken on applicants, including the lead applicant in the case of joint projects.

All supplementary attachments and information provided as part of the application will be taken into consideration during the assessment process.  Applicants may be contacted to provide additional supporting documentation and confirm the performance targets and milestones.

The assessment panel will provide recommendations on the projects to be supported to Whole of Victorian Government Investment Committee for endorsement and then recommendations made to the Minister for Industry and Innovation.  The Minister for Industry and Innovation will make the final decision as to whether an application will be funded under the Fund.

Decisions in recommending and awarding grant funding under this program are at the DJSIR’s and the Minister’s discretion.

There is no guarantee that an application will be supported for funding, or that the amount of funding requested will be offered.

What criteria will my application be assessed against?

For the full assessment criteria, please refer to the program guidelines.

This is a contestable program and successful applicants will be required to rate highly against the program’s assessment criteria. Highly competitive applications would be expected to satisfactorily meet all selection criteria.

Will the decision maker approve a different grant amount to what I requested?

Decisions around the provision of grants, including funding amounts, are at the discretion of the Minister for Industry and Innovation and therefore may differ from requested amounts when deemed appropriate within the assessment or contracting process.

Questions about available funding

How much funding is available?

The program provides grants of up to 50% of eligible project expenditure. The minimum grant amount is $250,000 (excluding GST) and the maximum grant amount is up to $2 million (excluding GST).

Projects with a total eligible expenditure of less than $500,000 (excluding GST) will not be considered.

Funding will not be provided for retrospective activities, i.e., where project expenditure is incurred prior to acceptance of a letter of offer or execution of a grant agreement. Applicants that commence their projects prior to execution of a grant agreement do so at their own risk.

What sort of financial commitment is required from companies?

Companies will need to meet the minimum cash co-contribution requirement of at least $1 for every $1 granted (50% of total eligible project expenditure).

In-kind contributions (i.e., non-monetary resources) are excluded from being counted towards the required co-contribution. Funds from other Victorian or Australian Government programs cannot form part of the co-contribution.

Full project expenditure, including grant funding and co-contribution funding, must be spent on eligible project activities.

How do I demonstrate evidence of my cash co-contribution?

Required evidence of cash co-contribution includes:

  • written evidence of support from the Board (or business owner or CEO) that the business can undertake the project and meet its co-contribution costs; and
  • an approved loan facility (loan agreement); or
  • cash at bank (current bank statement); or
  • management accounts demonstrating satisfactory cashflow or liquid assets.

Is in-kind allowable as a co-contribution?

No. In-kind contributions (i.e., non-monetary resources) are excluded from being counted towards the required 1:1 cash co-contribution.

Can I contribute more than the matched funding amount?

Yes, you may contribute more than the minimum requirement of 1:1 matching funding.  For example, you may apply for a grant of up to $500,000 for a total project investment of over $1,000,000.

The assessment process may consider the applicant’s capacity to provide a co-contribution of more than 1:1 and promote value for money outcomes favourably.

Can another government grant be used as part of a co-contribution?

No. Funds from other State or other jurisdiction or Australian Government programs cannot form part of the co-contribution funding.

Questions about project eligibility

Does my project need to be located in Victoria?

Yes, projects located outside Victoria will not be supported.

Does the proposed R&D equipment need to be situated in the lead applicant’s location?

No, R&D equipment can be situated in a project partner’s location, so long as it is based in Victoria. There will be an expectation that the R&D infrastructure built within the project partner’s location will be available to the lead applicant and any other applicable industry organisations for up to five years after the infrastructure is established and operational.

Questions about eligible project expenditure

What can the grant be used for?

Funding will support the purchase and commissioning of capital equipment (recorded as fixed assets in the applicant’s accounting and tax asset registers). Associated project expenditure related to construction or outfitting of buildings to enable R&D activities including those targeting process improvements, prototyping, evaluation and testing of new products and processes will also be considered.

Any other activities related to establishment of infrastructure and not covered by other programs, including the R&D tax incentive, may be considered on a case-by-case basis.

Eligible project expenditure includes the following activities:

  • capital expenditure (e.g., testing or specialised machinery, equipment and technology)
  • capital expenditure incurred to construct a building or part of a building
  • building costs associated with an extension alteration or improvement to a building
  • training of staff specific to the installation or operation of the new R&D infrastructure
  • labour and contractor expenses related to installation and commissioning of equipment or facilities
  • Accreditation expenses associated with equipment and/or facilities being assessed and granted industry-relevant standards (e.g. ISO standards)

All eligible expenditure should be readily identifiable as specifically used only for the establishment of infrastructure for delivery of R&D activity and not be used for other functions (i.e., in-market product manufacturing or day-to-day operational cost).

Successful projects will be monitored for resulting R&D activity.

Eligible project expenditure must be:

  • incurred by the grant recipient within 12 months of execution of the grant agreement
  • a direct cost of the project, and
  • exclusive of the Goods and Services Tax (GST).

The project budget as submitted with the application must clearly detail all proposed expenditure items and be subject to the approval of the DJSIR.

Should applicants be uncertain as to whether a particular expense is eligible for funding under the Industry R&D Infrastructure Fund, they can contact the program team by visiting the Contact us page.

What are some typical projects that might be funded?

Some typical projects might include:

  • Businesses may apply seeking to establish a new or expand R&D infrastructure within their own business to deliver process improvements, prototyping, evaluation and testing of their own products and processes.
  • Service providers that specialise in providing R&D services to support the establishment of new or expanded R&D infrastructure intended to be accessible to sector clients.
  • Business that are part of a consortium with partners, including public sector. organisations. The supported infrastructure could be established within either the lead applicant or partner organisations.

What activity is not eligible for funding?

The Industry R&D Infrastructure Fund is not intended to support projects which involve:

  • project expenses that are already funded or partially funded by other government funding
  • expenses incurred in acquiring, or in acquiring the right to use, technology wholly or partly for the purpose of one or more R&D activities
  • expenses that are primarily focussed on routine maintenance of existing R&D infrastructure
  • retrospective funding for activities that have already begun
  • business as usual operational expenditure, including existing staff costs/salaries, communications, travel, entertainment, accommodation and office computing equipment
  • land and lease costs
  • printing, stationery, postage, and bank charges
  • basic and routine professional services including legal and accounting fees
  • any amount paid on account of GST
  • costs related to preparing the grant application, preparing any project reports and preparing any project variation requests
  • building routine websites, sales and promotional activities, marketing or communications campaigns
  • regulatory and intellectual property fees and charges associated with registering domestic or international patents or other intellectual property enforcement expenses.

Does proposed R&D need to be associated with Victorian Manufactured equipment?

No, proposed R&D does not need to be associated with Victorian Manufactured equipment. If the submitted EOI application meets the requirements as outlined in the program guidelines, the application will be considered. Successful projects receiving funding to purchase R&D equipment must however have the equipment installed and operating in Victoria.

Are there any prohibited activities under the Fund?

Yes, Prohibited Activity means an activity which:

  • is illegal under Australian laws (including, without limitation, the Labour Hire Licensing Act (Vic) equal opportunity, anti-discrimination, affirmative action legislation and other Victorian laws)
  • is inconsistent with policies and procedures of the Victorian Government
  • involves the production, distribution, advocacy, sale, research or development of:
    • tobacco or tobacco-related products
    • cluster munitions and other controversial weapons
    • thermal coal and natural gas
    • gambling
    • logging of old growth forests
    • uranium
    • unregulated animal testing
    • live cattle and / or sheep exports or
    • fracking.

Will I have to sign a contract to receive the grant funding?

Yes. Successful applicants will be sent a letter of offer inviting them to enter into a legally binding grant agreement with DJSIR. The grant agreement details all funding obligations and conditions.

Applicants will have 15 calendar days from the date of the letter of offer to accept the offer in writing and 60 calendar days from the date of acceptance to execute the grant agreement with DJSIR. The offer may be withdrawn if the grant agreement is not executed within the 60-day timeframe.

When will my project need to be completed by?

Successful applicants will need to complete the project activities within 12 months of the date of the grant agreement.

Completion of the project within this timeframe will be a legally binding commitment in the grant agreement.

Successful applicants may negotiate projects timelines beyond 12 months on a case-by-case basis.

Will I be required to report on the progress of my project?

Yes. All recipients of grant funds must agree under the grant agreement to:

  • report on the outcomes of the project (6 monthly written milestone reports including progress towards purchase and installation of equipment are required). Depending on the size of the grant there may be a requirement for audited reports
  • complete a project completion evaluation report (before the final milestone payment is paid) – the funding agreement may include 2-3 year annual post-project evaluation reports
  • face-to-face meetings (as requested)
  • participate in a formal evaluation of the program by DJSIR or its agents (as requested).

Can I start my project before I have executed a grant agreement?

No. Funding will not be provided for retrospective activities, i.e., where project expenditure is incurred prior to receipt and acceptance of a letter of offer.

Applicants that commence their projects prior to execution of a grant agreement do so at their own risk, and the offer of the grant may be withdrawn.

Will the information I provide at application be kept confidential?

Information provided by applicants for the purpose of submitting an application will be used by DJSIR for the purposes of assessment of applications, program administration and program review.

In making an application, the applicant consents to the provision of their information to State and Australian Government departments and agencies for the purpose of assessing applications. If there is an intention to include personal information about third parties in the application, please ensure they are aware of and consent to the contents of this privacy statement.

Any personal information about the applicant or a third party will be collected, held, managed, used, disclosed or transferred in accordance with the provisions of the Privacy and Data Protection Act 2014 (Vic) and other applicable laws.

DJSIR is committed to protecting the privacy of personal information. The DJSIR Privacy Policy can be found online. Enquiries about access to information should be directed to the DJSIR Privacy Unit by emailing privacy@ecodev.vic.gov.au.

If successful, will my project details be made public?

Possibly. Grant recipients must agree to cooperate with DJSIR in the preparation of materials used to promote the benefits of the program to industry, such as a media release or case study on the project and consult with DJSIR prior to the publication of any project promotion materials.

Successful projects may be announced by the Minister for Industry and Innovation in a media release and may also be listed on the Business Victoria website.

Are there conditions that I would need to agree to as part of applying?

The applicant must agree to:

  • meet any co-contribution requirement with eligible cash expenditure
  • provide audited financial reports for the last 3 financial years to enable DJSIR to conduct a financial risk assessment. If accounts are not audited, unaudited accounts from an Accountant will be accepted
  • participate in future program evaluation activity
  • enforce the Victoria’s Climate Change Act 2017 (CC Act), the Fair Jobs Code, (2018), where applicable, Local Jobs First Policy (2018), and Gender Equality Act (2020) where applicable
  • meet all industrial relations obligations as an employer in accordance with the National Employment Standards.

Are there any prohibited activities under the Fund?

Yes, prohibited activity means an activity which:

  • is illegal under Australian laws (including, without limitation, the Labour Hire Licensing Act (Vic) equal opportunity, anti-discrimination, affirmative action legislation and other Victorian laws)
  • is inconsistent with policies and procedures of the Victorian Government
  • involves the production, distribution, advocacy, sale, research or development of:
    • tobacco or tobacco-related products
    • cluster munitions and other controversial weapons
    • thermal coal and natural gas
    • gambling
    • logging of old-growth forests
    • uranium
    • unregulated animal testing
    • live cattle and/or sheep exports or
    • fracking.

Where can I find more information?

The Industry R&D Infrastructure Fund guidelines can be accessed on the program webpage.

For further enquiries please visit our Contact us page.