NSW SCP: Economic Development and Infrastructure Round

Purpose and Program Overview

The NSW Sustainable Communities Program: Economic Development and Infrastructure Round is a $70 million competitive grant program designed to support exposed and vulnerable NSW southern Murray–Darling Basin communities through targeted infrastructure investment. It aims to minimise the social and economic impacts of water recovery under the Murray–Darling Basin Plan and the Australian Government’s Voluntary Water Purchase Program by creating and supporting jobs, encouraging innovation, and diversifying regional economies.

Funding is directed to critical infrastructure and enabling works that unlock industrial development, improve workforce participation, and support long-term economic growth so people can continue to live and work locally. The round sits within the broader $160 million NSW Sustainable Communities Program, which supports regional NSW communities, businesses and industries to adjust to water recovery while delivering enduring economic and social benefits.

Key Grant Details

• Grant amount: From $750,000 to $10 million (GST exclusive) per project.​
• Total funding pool: $70 million for this round.
• Applications close: 24 February 2026, 12:00 pm (AEDT).
• Project commencement: Within 6 months of funding deed execution.​
• Project completion: By 31 May 2029.​
• Outcome notification: From 30 June 2026.​
• Eligible applicants: Local councils, joint organisations, Aboriginal organisations (including LALCs), universities, not‑for‑profits, and private sector businesses able to demonstrate clear public benefit.​
• Co-contribution: Required for most applicants (see Co-contribution section below).​
• Location: Projects must be located in one of 12 eligible NSW LGAs – Balranald, Berrigan, Carrathool, Edward River, Federation, Griffith, Hay, Leeton, Murray River, Murrumbidgee, Narrandera or Wentworth.
• Jurisdiction: New South Wales, Australia (NSW southern Basin communities).

Priority Sectors

The program does not prescribe narrow industry sectors; instead, it targets region-based infrastructure and assets that support multiple users or industries and deliver broad economic benefit. It is therefore open to a broad range of sectors, including (but not limited to) manufacturing, logistics, agribusiness, processing, tourism-linked infrastructure, community services and other productive regional industries, provided projects meet the program’s economic development and workforce participation objectives.

Funding Scope

• Minimum grant per project: $750,000 (GST exclusive).​
• Maximum grant per project: $10 million (GST exclusive).
• Funding round type: Single competitive round under the NSW Sustainable Communities Program.
• Funding focus: Capital infrastructure and enabling works (no separate “feasibility-only” stream is identified in current guidelines).​

Project timeframes are strict: projects must commence within six months of the funding deed being executed and be physically and financially completed by 31 May 2029. Funding is available for infrastructure that can be delivered within this period and that demonstrates clear, long-term economic and workforce outcomes for NSW southern Basin communities.

Eligibility Criteria

• Applicant type must be one of the following:
  • NSW local council or joint organisation.​
  • Aboriginal organisations, including Local Aboriginal Land Councils.​
  • Australian university.​
  • Incorporated not‑for‑profit organisation.​
  • Private sector business or other eligible entity that can demonstrate a significant public benefit from the project.​
• Ineligible applicants include: individuals, sole traders, partnerships, unincorporated associations, insolvent entities, NSW Government agencies, state‑owned corporations and businesses whose primary activity is localised retail, trades, hospitality or professional/administrative services serving only the local community.​
• Project location must be within one of the 12 eligible NSW LGAs in the southern Murray–Darling Basin.​
• Applicants must hold an active ABN and be registered for GST where required under Australian law (standard requirement for NSW government infrastructure funding; confirmed in similar NSW SCP documentation and associated business.gov.au listing).
• Applicants must demonstrate financial viability, for example, by providing audited or certified financial statements for the two most recent financial years.​
• Applicants must hold or obtain appropriate insurance (including public liability insurance) for the life of the project.​
• Applicants must be able to secure all necessary regulatory, planning and environmental approvals within 12 months of the funding deed commencement (or demonstrate a clear planning pathway).​
• Applicants must submit a complete application with all mandatory attachments, including a business case, project budget, project plan, risk management plan and evidence of co-contributions.

Co-contribution Requirements

• Aboriginal organisations: No mandatory co‑contribution, although co-funding (cash or in-kind) is encouraged to strengthen the proposal.​
• Councils, joint organisations, universities and not‑for‑profits: Minimum 25% co‑contribution of total project cost (can be cash and/or in-kind contributions).​
• Private sector applicants and other entities: Minimum 50% co‑contribution of total project cost, and this must be cash only (no in-kind contributions accepted towards this threshold).​

Co-contributions must be clearly evidenced in the application, including confirmation of funding sources and timing to ensure project viability and delivery within the program timeframe.​

Eligible Activities and Expenses

The program funds infrastructure and enabling works that unlock economic growth, support workforce participation, and deliver enduring community benefits in eligible LGAs. Indicative eligible activities include:

• Economic infrastructure and assets, such as:
  • Logistics hubs and freight facilities servicing multiple LGAs or sectors.
  • Processing facilities and regional production or R&D facilities.​
  • Shared industry infrastructure that supports multiple businesses or industries.​
• Critical land development enabling works, such as:
  • Servicing and preparing land to unlock industrial, commercial or housing developments.​
  • Installation or upgrade of utilities and services infrastructure (roads, water, sewer, power, digital connectivity) is needed to activate development.​
• Sustainable community infrastructure that supports workforce participation, for example:
  • New or expanded childcare, aged care or community service facilities that enable people to live and work locally.​
  • Community infrastructure that improves liveability while delivering clear economic and employment outcomes.​

The program generally supports capital works and associated enabling costs; purely operational, recurrent or unrelated business-as-usual costs are not supported.

Assessment Process

The Economic Development and Infrastructure Round is a merit‑based, competitive grant program. Applications are assessed against published criteria and ranked to determine which projects best meet the program objectives and offer the highest net benefit for NSW southern Basin communities.

Key assessment considerations include:

• Project merit and strategic alignment – contribution to economic growth, job creation, industry diversification and workforce participation in eligible communities.
• Evidence of need and case for change – how the project addresses identified challenges linked to water recovery impacts and supports long-term regional resilience.​
• Value for money – scale of benefits relative to grant funding requested, strength of co-contributions and leveraging of other investment.
• Deliverability and risk – project readiness, realism of budget and schedule, strength of project governance and risk management, and ability to secure approvals and complete works by 31 May 2029.​
• Enduring benefits – the extent to which infrastructure provides lasting regional benefits and supports multiple users or industries.​

Recent Program Updates

The Economic Development and Infrastructure Round builds on the earlier Early Investment Round under the same NSW Sustainable Communities Program, which has already committed $16.3 million to projects in NSW southern Basin communities. The current round increases the scale of available funding to $70 million and focuses specifically on larger critical infrastructure projects with minimum grants of $750,000 and strengthened co-contribution requirements.

Program documentation indicates updated guidelines that reflect the Australian Government’s ongoing Voluntary Water Purchase Program for the additional 450 GL, reinforcing the focus on exposed and vulnerable Basin communities. The listing on business.gov.au and regional development websites confirms this round is open with a closing date of 24 February 2026, and highlights its role in supporting long-term regional adjustment and resilience.

Application Tips

• Review the full program guidelines and FAQs carefully to confirm the eligibility of both the applicant and the proposed project before committing resources to an application.
• Ensure the project is clearly located within one of the 12 eligible LGAs and that all land tenure and approvals issues are understood early, including a clear planning pathway.​
• Prepare a robust business case that clearly articulates the case for change, economic and social benefits, job outcomes, industry diversification impacts and alignment with the program’s objectives for NSW southern Basin communities.​
• Develop a realistic project budget supported by recent quotes and, for projects over $2 million, an estimate prepared by a qualified quantity surveyor.​
• Demonstrate organisational capability and governance by outlining project management arrangements, key personnel experience, procurement strategies and risk management processes.​
• Clearly evidence all co-contributions, including confirmation letters or agreements, and ensure that private-sector contributions meet the cash‑only requirement.​
• Align the proposal with relevant NSW and Australian Government priorities in regional development, water recovery adjustment, jobs and industry diversification, and show how the project complements other investments in the region.

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. For official guidelines, application details, templates and further information, interested parties should refer to the NSW Sustainable Communities Program: Economic Development and Infrastructure Round pages on the NSW Government website, the SmartyGrants application portal and the related listing on business.gov.au