NSW Natural Hazards Detection System Grants (Phase 2)

Purpose and Program Overview

The Natural Hazards Detection System (NHDS) Grants Program is a multi-phased competitive challenge established by the NSW Government to test and validate innovative technological solutions for detecting and monitoring natural hazards, specifically agribusinesses and primary producers. Phase 2 of the program is specifically designed to transition successful Proof-of-Concept (PoC) technologies from Phase 1 into large-scale, 12-month pilot deployments in targeted Local Government Area (LGA) locations across New South Wales.

The program’s primary objective is to enhance early identification and warning capabilities, thereby strengthening NSW’s preparedness and response to natural hazards. Key goals include real-world testing and adaptation of technology, engaging key government stakeholders to refine problem understanding, and validating the ability of sensors to contribute data to the centralised NHDS data API.

The overall NHDS Program represents an investment of $3.3 million to drive innovation in the emergency management sector. By evaluating the suitability, performance, and cost-effectiveness of supplier solutions in a real-world setting, the program facilitates crucial procurement considerations for NSW Government agencies aiming for large-scale deployment of effective natural hazard detection technologies.

Key Grant Details

Key details for the NHDS Phase 2 Grant are listed below:

• Grant amount or funding range: Successful applicants could receive up to $350,000 for the pilot deployment.
• Application open and close dates: Applications opened on 3 September 2025 and closed on 8 October 2025, 5:00 pm.
• Eligible industries or business types: Primarily technology developers, research entities, and companies incorporated under the Corporations Act, focused on innovative detection solutions. Eligibility is restricted to organisations that received a Phase 1 grant.
• Required co-contributions: Co-contributions were not specified as a mandatory requirement.
• Location/state/territory applicability: The grant supports technology trials and deployment exclusively in New South Wales (NSW), specifically in designated LGA locations.

Priority Sectors

The program is highly targeted towards the Technology, Innovation, and Emergency Management Solutions sectors.

Priority areas for the proposed technology focus on:

• Innovative detection technologies capable of monitoring floods and bushfires.
• Solutions that can be deployed in targeted LGA locations for real-world testing and adaptation.
• Technologies that support collaboration with government stakeholders and integrate data effectively into a centralised data API.

Funding Scope

The funding is designed to cover the costs associated with piloting a proven technology over a defined period.

• Minimum and maximum amounts per stream: The maximum grant amount per entity is $350,000. The grant is offered in a single phase (Phase 2) dedicated to the pilot deployment.
• Categories or streams of funding: Funding covers deployment, operation, maintenance, integration with NSW Government ICT platforms, professional expertise (e.g., drone pilots), capital costs, and project-related labour/licence fees.
• Project timeline or eligible funding duration: Projects must cover the necessary activities for a 12-month field deployment/trial of the adapted technology.

Eligibility Criteria

Only organisations that participated in and secured funding from Phase 1 of the NHDS program were eligible to apply for Phase 2.

• Mandatory Prerequisite: Must have received an NHDS Phase 1 Proof-of-Concept grant.
• Entity Type: Must be a non-tax exempt entity that is either a Company incorporated under the Corporations Act (including a company limited by guarantee) or an Aboriginal and Torres Strait Islander Corporation.
• ABN/Financials: Must possess an Australian Business Number (ABN) and have an account with an Australian financial institution.
• Intellectual Property (IP): Must hold the intellectual property rights or possess the rights to commercialise the technology.
• Compliance/Commitments: Must agree that all data generated throughout the program will be owned by the NSW Government and must confirm the technology can be trialled in NSW.
• Duplication: Applicants must demonstrate that proposed activities do not duplicate funding received from other NSW, state, or federal grant programs.

Eligible Activities and Expenses

The grant supports activities directly related to the large-scale pilot deployment of the technology:

Eligible Activities include:

• Building and testing additional units of the technology.
• Deployment and operation of the technology to designated locations within NSW for the 12-month trial.
• Costs associated with integrating the technology with NSW Government ICT platforms.
• Facilitating NSW Government requirements and providing input into the technology adaptation.
• Training of NSW Government personnel as part of the trial/pilot.
• Data analysis and management costs.

Eligible Expenditures include:

• Capital costs associated with the technology.
• Labour expenditure for temporary employment dedicated to the project.
• Licence fees incurred as part of the project.
• Data analysis and/or management costs.

Assessment Process

The NHDS Phase 2 is administered as a Competitive Challenge Program. Applications undergo a rigorous two-stage assessment process overseen by the Office of the Chief Scientist and Engineer (OCSE), with the final decision made by the NSW Chief Scientist & Engineer.

Stage 1: Eligibility Assessment

Applications are checked against all mandatory criteria. Only eligible applications proceed to merit assessment.

Stage 2: Merit Assessment

Applications are assessed by an independent Assessment Panel against the following criteria:

1. Proof-of-Concept (PoC) Report (30%): Assesses the success of Phase 1, focusing on clarity of outcomes, challenge alignment, data connectivity, and feasibility/scalability of the solution.
2. Project Proposal (50%): Evaluates the plan for Phase 2 deployment, including the technical suitability of the approach, clarity of timelines, consideration of designated LGAs, and the extent to which the proposal maximises coverage and impact.
3. Project Budget and Financials (20%): Assesses value for money, completeness, accuracy, and justification of the budget, and the company’s financial capacity and viability to deliver the project.

Recent Program Updates

The Natural Hazards Detection System Grants is a multi-phased program. The Phase 2 grant opportunity moved the initiative from the Proof-of-Concept stage to the real-world, large-scale pilot deployment stage (12 months). This transition aims to validate the most promising technologies before potential procurement by NSW Government agencies. This round is currently closed.

Application Tips

Applicants for similar, highly competitive technology challenges should focus on the following:

• Detail Phase 1 Success: Since only Phase 1 recipients can apply, the PoC Report must be robust, clearly detailing the technical results, scalability, and lessons learned from the initial trial.
• Demonstrate Value for Money (VfM): Provide transparent, detailed per-unit costings and justification. Proposals must clearly show how the requested funding maximises technology deployment and delivers meaningful coverage within the designated LGAs.
• Address Logistics: The proposal must include a clear, deliverable plan for deployment, installation, operation, and maintenance of the technology over the 12-month trial period, paying specific attention to the site-specific challenges of the targeted NSW locations.
• Ensure Data Compliance: Confirm commitment to providing the required data format and explicitly acknowledge the NSW Government’s ownership of all data generated during the program.

Where to get help

Consider consulting a grant specialist for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact Pattens Group today, and we will connect you 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 program’s official website and other associated Australian government websites.