Private Sector Pathways Program (PSP)

Purpose and Program Overview

The Private Sector Pathways Program (PSP) Queensland is a Queensland Government initiative. It supports innovative small to medium enterprises (SMEs) and scaleups based in Queensland. It connects them with corporate partners. The program helps develop and pilot solutions to real business challenges. It works to create commercial opportunities. This allows SMEs to scale, change direction, or expand into new sectors through co-funded pilot projects with large organisations.

Funding comes from Advance Queensland and participating corporate partners. The program sets up a risk-managed path for SMEs to trial technologies or services with corporates. These trials last from 6 to 12 months. This cooperation fosters innovation, helps SMEs gain recognition through corporate customers, and supports economic growth. It also helps Queensland’s industry landscape become more varied.

The program’s broader role is to encourage partnerships between the private sector and innovative Queensland businesses. It backs the development of new commercial solutions. This makes the regional industry more competitive and supports sustainable business growth.

Key Grant Details

• Grant amount: Up to $200,000 per project. Funding is typically shared between Advance Queensland and the corporate partner.
• Application open: Varies by challenge. Specific corporate challenges have distinct opening and closing dates.
• Application close: Depends on individual corporate challenges. The current challenge closes 19 June 2025 at 2 pm AEST.
• Eligible industries/business types: Queensland-based SMEs and scaleups. They must have fewer than 200 full-time equivalent employees. They must also develop products or solutions at or beyond the minimum viable product (MVP) stage.
• Co-contributions: Required. Co-funding is shared between the corporate partner and Advance Queensland, as per the challenge terms.
• Location applicability: Project activities and applicant businesses must be located in Queensland.

Priority Sectors

The Private Sector Pathways Program targets many industry sectors. These sectors match corporate challenge areas. Participating corporates often come from sectors such as: advanced manufacturing, hydrogen, bio-futures, biomedical, defence, aerospace, space, resource recovery, and mining technology. The program is open to new ideas in diverse sectors. These sectors must be relevant to the business challenges set by corporate partners.

Funding Scope

• Minimum and maximum amounts: Up to $200,000 per project. Flexible funding amounts are negotiated for each challenge.
• Categories/streams: Funding goes towards pilot projects. These projects solve specific corporate business challenges using technology or service innovations.
• Project timeline: Typically ranges from 6 to 12 months per funded pilot project.

Grant Amount in Total

Total available funding depends on individual corporate challenges. It also depends on blended funding arrangements with Advance Queensland. No fixed total is publicly stated.

Eligibility Criteria

• Queensland-registered business with an Australian Business Number (ABN).
• Registered for Goods and Services Tax (GST) at the time of contract execution.
• Established Queensland-based startup, SME, or scaleup with fewer than 200 full-time equivalent employees.
• Developing products or services at or beyond a minimum viable product (MVP) stage within Queensland.
• Must not have had previous commercial contracts with the relevant corporate partner for the specific challenge. This ensures new opportunities.
• Capacity to undertake and complete projects within the specified timelines.

Eligible Activities and Expenses

• Development and pilot testing of technology solutions or services addressing corporate challenges.
• Activities needed to show proof of concept or commercial viability in partnership with corporate entities.
• Project management, reporting, and stakeholder engagement are linked to challenge delivery.
• Intellectual property management is consistent with the program terms. This allows applicants to keep their IP developed.

Assessment Process

This is a competitive, challenge-specific evaluation. Panels include representatives from Advance Queensland and corporate partners. They assess applications.

Evaluation concentrates on:

• Feasibility and novelty of proposed solutions.
• Potential business and commercial impact.
• Match with the challenge objectives set by corporate partners.
• Value for money, including suitable funding amounts and milestones.
• The capability and capacity of the applicant to deliver the solution.

The program uses a staged application process. This involves identifying challenges, releasing statements, assessing applications, selecting solutions, and funding projects. Shortlisted applicants may present their ideas.

Recent Program Updates

There is an ongoing release of corporate challenges for SMEs. Current calls include the Queensland Museum’s provenance research tool challenge, which is closed on 19 June 2025. Updated program guidelines became effective in 2024. These guidelines help improve cooperation and funding processes. Corporations can submit expressions of interest to partner with Advance Queensland for new challenge releases.

Application Tips

• Carefully review the specific corporate challenge statement. Understand requirements and desired outcomes.
• Prepare detailed, clear proposals. Address the challenge objectives and show originality.
• Ensure capacity to meet project timelines and deliverables. Include well-documented milestones and budgets.
• Attend any information sessions or briefings offered by challenge owners or Advance Queensland.
• Prepare co-funding arrangements. Confirm GST and ABN registration status before applying.
• Submit complete applications promptly. This is due to ongoing assessment and funding availability.

Where to Get Help

Consider consulting with a professional grant specialist like Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit Advance Queensland website for detailed application guidance and templates.