NSW Innovative Manufacturing Adoption Fund (IMAF) Stage 1

Purpose and Program Overview

The Innovative Manufacturing Adoption Fund (IMAF) Stage 1 is a competitive grant program administered by the NSW Government’s Premier’s Department, delivered through Investment NSW. It was launched on 20 August 2026 as part of a broader $6 million initiative aimed at rebuilding NSW’s local manufacturing capability, strengthening supply chains and growing high-value industries across the state. Stage 1 focuses on discovery and feasibility, with $1 million in funding available for this round.

The fund is designed to help manufacturers investigate the adoption of advanced technologies before committing to significant capital expenditure. It supports feasibility studies, business case development and early-stage testing so that businesses can make informed, evidence-based decisions about future technology investment.

IMAF forms part of a two-stage program. Stage 1 provides smaller grants for discovery and feasibility work, while Stage 2, opening in early 2027, will offer up to $5 million in competitive funding to support implementation and scale-up of new technologies. Together, the stages are intended to strengthen productivity, competitiveness and job creation in the NSW manufacturing sector, aligning with the NSW Industry Policy and the NSW Innovation Blueprint.

Key Grant Details

• Grant amount: $10,000 to $50,000 per project
• Application opened: 20 August 2026
• Application closes: 6 October 2026, 5:00 pm, or earlier if the $1 million funding pool is fully allocated
• Eligible businesses: NSW-headquartered manufacturers operating under a relevant manufacturing ANZSIC or BIC code
• Co-contribution required: Yes, a minimum 50% cash co-contribution towards total eligible project expenditure
• Location applicability: New South Wales only; project activities and expenditure must occur within NSW

Priority Sectors

The fund targets manufacturers with current or intended capability to supply products or manufacturing services to the following sectors, as outlined in the NSW Industry Policy and NSW Trade and Investment Strategy:

• Construction and Building Products (including Modern Methods of Construction)
• Clean energy products
• Transport and Rolling Stock
• Defence and Aerospace
• Health and Medtech Manufacturing
• Digital Technologies – Advanced Electronics
• Mining Equipment, Technology and Services
• Agriculture
• Food and beverage manufacturing

Net Zero and energy-related manufacturing activities, such as manufacturing solar panels or wind turbines, are not supported under this fund and are addressed through separate NSW Government programs.

Funding Scope

• Grant range: $10,000 to $50,000 per approved project
• Funding rate: The grant covers 50% of eligible project expenditure; the applicant funds the remaining 50%
• Funding stream: Discovery and Feasibility (Stage 1 only); Stage 2 (Implementation) opens separately in early 2027 with up to $5 million in funding
• Total funding pool: $1 million for Stage 1
• Project focus: Investigating adoption of one or more Target Technologies and Capabilities through an external consultant or manufacturing service provider

Eligibility Criteria

To be eligible, applicants must:

• Hold an active Australian Business Number (ABN)
• Be an Australian corporation headquartered in NSW.
• Hold an account with an Australian authorised deposit-taking institution (ADI)
• Have a minimum turnover of $1 million in each of the two financial years before applying.
• Employ between 10 and 100 full-time equivalent employees.
• Operate a manufacturing facility in NSW.
• Operate under a relevant manufacturing ANZSIC code or Business Industry Code (BIC)
• Demonstrate current or potential capability in advanced manufacturing within a target sector.
• Demonstrate that the project investigates adoption of one or more Target Technologies and Capabilities.
• Provide a minimum 50% cash co-contribution towards total eligible project expenditure.

Ineligible entities include sole traders, unincorporated associations, trusts, partnerships, tax-exempt entities, insolvent or bankrupt entities, government agencies, and Australian subsidiaries of international companies. Businesses already receiving government funding for the same or similar activities are also excluded. Only one application per business, including related entities, will be assessed.

Eligible Activities and Expenses

Eligible project activities include:

• Feasibility studies and business case development
• Pilot projects, prototyping and process testing
• Assessment of new equipment, software or systems
• Certification and compliance-related activities

Eligible costs are limited to fees charged by an external consultant or manufacturing service provider (a minimum of 75% of the project budget) and internal wages directly related to project delivery (up to 25% of the project budget). Ineligible costs include the purchase or lease of equipment, general R&D unrelated to the approved project, standard IT equipment, capital works, and any costs incurred before the application was submitted.

Assessment Process

IMAF Stage 1 is a competitive grant program, not an entitlement scheme. Applications are first reviewed against eligibility criteria before progressing to competitive assessment. Investment NSW may request further information and seek advice from other government agencies or external technical specialists during assessment.

The Minister for Industry and Trade is the designated decision-maker and approves all grants, subject to available funding. Decisions may also account for conflicts of interest, applicant suitability, and reputational considerations. All funding decisions are final.

Recent Program Updates

IMAF Stage 1 opened on 20 August 2026 as a new grant round under a $6 million Minns Labour Government manufacturing initiative. Stage 2, which will provide up to $5 million in implementation funding, is scheduled to open in early 2027. Applicants should monitor the official NSW Government grants page for updates, as guidance on eligible and ineligible expenditure may be revised over time.

Application Tips

• Confirm eligibility against all criteria, including turnover, employee numbers and sector alignment, before applying
• Secure a formal proposal from an external consultant or manufacturing service provider, as this is a mandatory application component
• Prepare financial statements for the past two financial years and evidence of current FTE employee numbers in advance
• Align the proposed project clearly with the fund’s Target Sectors and Target Technologies
• Address each assessment criterion directly and provide complete, accurate supporting information
• Apply early, as Stage 1 may close before 6 October 2026 if the funding pool is fully allocated

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 Innovative Manufacturing Adoption Fund Stage 1 and other associated Australian government websites.