Housing Innovation in Construction Fund NSW

Purpose and Program Overview

The Housing Innovation in Construction Fund NSW is a grant program administered by Investment NSW, part of the Premier’s Department, to support Modern Methods of Construction (MMC) manufacturing capability for the delivery of mid-rise and high-rise housing across New South Wales. The program targets established manufacturers seeking to build, expand, or relocate MMC operations capable of producing Class 2 and Class 3 buildings.

The NSW Government has committed up to $2 million in funding for the 2026–27 financial year. The fund supports the government’s broader Housing Mission, as set out in the Industry Policy, and aligns with the investment pillars of the Trade & Investment Strategy and the Innovation Blueprint. It is designed to help address housing supply challenges by accelerating the entry and expansion of industrialised construction capability in the state.

Rather than funding construction activity directly, the program funds a critical early step: feasibility studies and design reviews that assess whether a manufacturer’s building systems meet NSW regulatory requirements. This positions the fund as an enabler for manufacturers considering, but not yet committed to, establishing Class 2/3 MMC operations in NSW.

Key Grant Details

• Grant amount: $20,000 to $150,000 (AUD) per successful applicant
• Total funding pool: Up to $2 million available for the 2026–27 financial year
• Applications open: 29 June 2026
• Applications close: 31 May 2027, 5:00 pm, or earlier if funds are fully allocated
• Eligible entities: Established Modern Methods of Construction (MMC) manufacturers, both domestic and international
• Co-contribution required: Yes — a minimum of 50% of the Total Eligible Project Expenditure
• Location applicability: New South Wales; the funded activity must support entry into, or expansion within, the NSW market

Priority Sectors

The program guidelines do not list multiple priority sectors. Funding is directed specifically toward the housing and construction sector, with a focus on manufacturers of Modern Methods of Construction (MMC) building systems for mid-rise and high-rise (Class 2/3) residential developments.

Funding Scope

• Minimum grant: $20,000
• Maximum grant: $150,000
• Grant percentage: Up to 50% of the Total Eligible Project Expenditure
• Minimum co-contribution: 50% of the Total Eligible Project Expenditure
• Funding structure: A single stream, focused on feasibility studies and design/engineering reviews; payments are released against agreed project milestones
• Project timeline: Projects must be completed within 12 months of the executed funding agreement, with a minimum project period of 2 months
• Selection process: Open and non-competitive, with applications assessed on an ongoing basis until funds are exhausted or the closing date is reached

Eligibility Criteria

• Be an established MMC provider with demonstrated capability, falling into one of the following categories:
  • A domestic Class 1 (detached/semi-detached residential) MMC provider seeking to expand into Class 2 (mid/high-rise) solutions in NSW
  • An international business with existing Class 2-equivalent capability seeking to enter the NSW/Australian market
  • An existing manufacturing or construction business seeking to develop an MMC offering for Class 2 solutions in NSW
• Hold a minimum turnover of AUD $2.5 million per year for each of the last three years
• Demonstrate at least three years of experience delivering industrialised construction solutions
• Be registered with an Australian Business Number (ABN), or the equivalent for international businesses
• Be solvent and compliant with applicable Australian laws and regulations
• Have a clear feasibility study or review plan, covering scope, budget, methodology, capacity, resources, and milestones
• Provide a detailed project budget outlining eligible costs, co-contribution, milestones, and the funding amount requested

Eligible Activities and Expenses

Funded projects must centre on a feasibility study or design/engineering review, which may include:

• Benchmarking existing building designs, products, or manufacturing processes against NSW standards
• Engineering compliance assessments against the National Construction Code (NCC) and other applicable state building regulations
• Engaging Australian-based professional service providers accredited by Engineers Australia or an equivalent specialist engineering association
• Engaging practitioners registered under the NSW Design and Building Practitioners (DBP) Scheme
• Identifying compliance gaps and developing engineering or design solutions to address them

Assessment Process

The grant operates on an open, non-competitive basis, meaning eligible applications are assessed on an ongoing basis rather than ranked against one another in a single funding round. Key steps include:

• Application: Submitted online via the SmartyGrants platform
• Assessment: Investment NSW reviews each application against the published eligibility and assessment criteria
• Decision: The Minister for Innovation, Science and Technology makes the final funding decision, based on assessment recommendations
• Notification: Applicants are advised of the outcome once a decision is made

The core assessment criterion is whether the proposed feasibility study or review will adequately evaluate the applicant’s Class 2/3 designs against NSW building regulations and standards, using appropriately accredited and DBP-registered professionals.

Recent Program Updates

• The program guidelines were published in June 2026, ahead of the 29 June 2026 opening date
• The fund forms part of a broader Modern Methods of Construction Housing Innovation Facility, which includes multiple program streams supporting different stages of MMC capability development
• The current round remains open, with funding available until the 31 May 2027 closing date or until the $2 million pool is fully allocated, whichever occurs first

Application Tips

• Confirm eligibility against the turnover, experience, and MMC capability requirements before starting an application
• Prepare a clear feasibility study or review plan, including scope, budget, methodology, and milestones
• Identify and engage Australian-based, appropriately accredited engineering or design professionals early, as their involvement is a core eligibility requirement
• Ensure the project budget clearly separates eligible costs, the requested grant amount, and the required co-contribution
• Align the proposal with the program’s objective of expanding NSW’s Class 2/3 MMC manufacturing capability
• Submit applications as early as possible, given the non-competitive, rolling assessment process and finite funding pool

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact us today and get connected with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of the Housing Innovation in Construction Fund NSW and other associated Australian government websites.