Recycling Modernisation Fund (RMF)

Purpose and Program Overview

The Recycling Modernisation Fund (RMF) is a national Australian Government initiative designed to expand Australia’s capacity to sort, process and remanufacture key waste materials, including plastics, tyres, glass, paper and cardboard. It provides over $200 million in Commonwealth funding, leveraged with state, territory and industry co‑investment to deliver more than $1 billion in new and upgraded recycling infrastructure across the country.

The program supports businesses and industry by co‑funding modern recycling facilities and technologies to build domestic processing capacity, reduce reliance on waste exports and strengthen resource recovery systems. It forms a core component of the National Waste Policy Action Plan and directly underpins Australia’s waste export regulations by helping industry transition to onshore solutions.

RMF projects aim to create local jobs, support regional and remote communities, and accelerate the shift to a circular economy through improved collection, sorting, reuse, recycling and remanufacturing of targeted materials. Funding is delivered through agreements with states and territories, with applications and project delivery managed by state agencies in partnership with the Department of Climate Change, Energy, the Environment and Water (DCCEEW).

Key Grant Details

• Grant amount or funding range: Typically co‑funding for capital and infrastructure projects, with specific ranges set under each state or territory stream; for example, some regional and remote programs offer grants from 10,000 up to 1 million per project.
• Application open and close dates: Determined by state and territory schemes and individual rounds; businesses must check relevant state agency or program pages for current round dates.
• Eligible industries or business types: Waste and recycling operators, manufacturers using recycled inputs, regional and remote organisations, local governments, and eligible not‑for‑profit organisations involved in resource recovery and recycling infrastructure.
• Required co‑contributions: Co‑funding from states, territories and industry is a core feature; most streams require applicant co‑investment, with ratios and minimum contributions specified in individual program guidelines.
• Location/state/territory applicability: National program delivered via state and territory schedules; separate RMF streams operate in jurisdictions including Western Australia, Queensland and New South Wales, with regional and remote programs targeted to non‑metro locations.

Priority Sectors

The RMF primarily targets sectors involved in the collection, sorting, processing and remanufacturing of glass, plastics, tyres, paper and cardboard. These include waste management, recycling facility operators, remanufacturing businesses using recovered materials, and regional and remote resource recovery services.

Where specific sector priorities are not listed, the program is open to a broad range of organisations that can deliver measurable increases in recycling and processing capacity for the targeted materials, particularly those aligned with waste export regulations and circular economy objectives.

Funding Scope

The RMF operates through several funding streams, including mainstream recycling infrastructure, plastics technology initiatives, and dedicated regional and remote infrastructure programs, allowing jurisdictions to focus investment on identified recycling gaps. Individual state programs may define minimum and maximum grant amounts per stream, such as 10,000 to 1 million for regional and remote processing capacity projects in New South Wales.

Funding is typically directed to capital works and infrastructure upgrades, including sorting, processing and remanufacturing facilities, with project timelines and eligible funding duration defined in state and territory schedules and program guidelines. Projects must generally be delivered within agreed milestones and completion dates to support timely outcomes under the national waste export ban framework.

Eligibility Criteria

• Applicant must be an eligible organisation such as a business, local government entity, regional organisation of councils, or non‑government/not‑for‑profit organisation, as defined in the relevant state RMF stream.
• Organisation must be operating, or proposing to operate, a recycling, processing or remanufacturing activity related to targeted materials (glass, plastics, tyres, paper and cardboard).
• Business or organisation must be located in Australia, with some streams specifically requiring projects to be in regional or remote locations within the relevant state.
• Applicants must comply with applicable environmental, planning and waste management regulations and any insurance or risk management requirements specified in program guidelines.
• Applicants are generally required to provide co‑funding and demonstrate financial capacity to complete the project, with detailed co‑contribution and financial eligibility criteria set by state agencies.
• Standard Australian business compliance such as valid ABN and GST registration is typically required under government grant administration frameworks.

Eligible Activities and Expenses

• Design, construction and upgrade of recycling facilities that increase sorting, processing or remanufacturing capacity for glass, plastics, tyres, paper and cardboard.
• Purchase and installation of capital equipment and modern recycling technologies, including sorting systems, processing lines and remanufacturing machinery.
• Infrastructure projects that improve collection, aggregation and transfer of targeted waste streams, particularly in regional and remote areas.
• Technology upgrades that enhance resource recovery efficiency, support compliance with waste export regulations and enable higher‑value products from recycled materials.
• Ancillary project costs necessary to deliver funded infrastructure, subject to specific eligibility rules in each program (for example, project management, commissioning and integration activities).

Assessment Process

The RMF is administered as a competitive grant program, with projects assessed against merit and strategic criteria rather than offered as automatic entitlements. Applications are evaluated by state and territory agencies in line with funding agreements, using information provided by project proponents during the application process and subsequent reporting.

Key evaluation considerations include the project’s ability to increase processing capacity, support the waste export ban, deliver value for money, and align with national waste and circular economy objectives. Additional criteria may cover project readiness, regional impact, environmental outcomes and applicant capability to complete infrastructure works within agreed timelines.

Recent Program Updates

The RMF was established in 2020 and continues to evolve, with ongoing investment rounds and additional projects announced as part of the National Waste Policy Action Plan. By mid‑2025, more than 50 new and upgraded recycling infrastructure projects across Australia had been completed under the fund, significantly increasing national processing capacity.

Recent updates include continued emphasis on regional and remote infrastructure, plastics technology streams and enhanced transparency through the RMF Data Viewer, which provides public access to project locations, materials and job metrics. Audit and oversight activities have also been flagged to review the effectiveness of DCCEEW’s administration and operation of the fund, reflecting an ongoing focus on governance and program performance.

Application Tips

• Review the relevant state or territory RMF guidelines carefully to confirm eligibility, co‑contribution requirements and any regional or material‑specific conditions before preparing an application.
• Prepare core documents in advance, including project plans, budgets, evidence of co‑funding, regulatory approvals and financial statements, as these will be critical to demonstrating capacity and compliance.
• Clearly align the proposal with government priorities, highlighting how the project will increase domestic processing capacity, support the waste export ban and contribute to circular economy outcomes for targeted materials.
• Emphasise organisational capability, including prior experience in waste or recycling infrastructure, partnerships with local stakeholders and realistic timelines for delivering the proposed works.
• Use the RMF Data Viewer to understand existing funded projects and identify gaps or complementary opportunities that strengthen the strategic case for your proposal.catalogue.data.

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 Pattens Group to discuss project concepts and receive guidance on structuring proposals, co‑funding and documentation for RMF‑related opportunities.

For official guidelines, application details, templates and further information, visit the Recycling Modernisation Fund pages on the Department of Climate Change, Energy, the Environment and Water website and the relevant state or territory government RMF program websites. The RMF Data Viewer also provides useful context on existing projects and investment patterns across jurisdictions.