VIC Land Systems Fund Supply Chain Uplift Program

Purpose and Program Overview

The Victorian Land Systems Fund – Supply Chain Uplift Program (SCUP) is a targeted initiative by the Victorian Government. It supports local defence industry businesses to strengthen their capabilities. This helps them effectively join supply chains with Hanwha Defence Australia (Hanwha). The program helps Victorian suppliers to participate in major defence contracts. These include the $1 billion Land 8116 Self-Propelled Howitzer program and the Land 400 Phase 3 Infantry Fighting Vehicle project. Both projects are important to Victoria’s defence manufacturing sector.

With grants ranging from $2,000 to $100,000 (exclusive of GST), SCUP provides matched funding. It helps eligible Victorian SMEs gain relevant accreditations, meet compliance requirements, upgrade facilities, and enhance their products and services. It also helps them pursue export and collaboration opportunities. By building local business capacity, the program plays an important role. It helps capture long-term economic and employment benefits from critical defence projects. It also supports Victorian innovation and sustainable growth within the defence manufacturing ecosystem.

The Supply Chain Uplift Program contributes to Victoria’s strategic objective of developing a strong local supply chain for defence manufacturing. It strengthens the state’s industrial base. It boosts regional employment and advances technological capabilities in the defence and aerospace sectors. It is part of the broader Victorian Government’s Defence Capture Plan (2021).

Key Grant Details

• Grant amount: Between $2,000 and $100,000 (exclusive of GST) per grant.
• Application open: The program is open now with an ongoing intake.
• Application close: Applications are accepted on a rolling basis until the funding is exhausted or until 30 June 2024, whichever comes first. Given the date, the program is now closed.
• Eligible entities: Victorian small and medium-sized enterprises (SMEs) engaged in or seeking to engage in defence supply chains related to Hanwha Defence Australia contracts. SMEs are defined as businesses with 200 or fewer employees.
• Co-contributions: A mandatory 1:1 cash co-contribution is required. Applicants must match the grant funds with an equal amount of their own funds. Funds from other government grants cannot be used for this co-contribution.
• Location/state/territory applicability: Victorian registered businesses only. Projects must directly support business activities based in Victoria.

Priority Sectors

The grant specifically targets Victorian defence industry businesses. These businesses must be involved with or aspiring to support Hanwha Defence Australia’s land systems programs. Priority is given to sectors and enterprises focused on:

• Manufacturing.
• R&D.
• Defence-related technology development.
• Supply chain services tailored to defence and aerospace.
• Projects that help businesses join Hanwha’s domestic and global supply chains.

Funding Scope

• Funding range: $2,000 to $100,000 per applicant.
• Funding categories:
  • Business systems and process certifications (e.g., ISO 9001, International Traffic in Arms Regulations (ITAR), or Defence Industry Security Program (DISP)).
  • Tender preparation and bid support for defence contracts.
  • Industry-specific compliance and accreditation activities.
  • Minor facility upgrades and equipment fit-outs.
  • Development or enhancement of defence products and services.
  • Defence-related R&D and technology transfer.
  • Participation in trade missions to pursue collaboration or export opportunities. The maximum grant for trade missions is $5,000.
• Project timeline: Projects must be completed within 12 months of grant approval.

Grant Amount in Total

The total funding pool is not publicly disclosed. It was administered on a rolling basis until 30 June 2024 or until the funds were fully allocated.

Eligibility Criteria of Supply Chain Uplift Program (SCUP)

• A legal entity with an operating business presence in Victoria.
• Must have a current Australian Business Number (ABN).
• Applicants were required to register on Hanwha’s BenchOn portal before applying.
• Must have the capability to meet the mandatory 1:1 cash co-contribution.
• Must be able to attest that the business complies with all workplace health and safety and industrial relations obligations.
• Projects must be directly linked to the applicant’s Victorian business operations and demonstrate how they would support activities related to Hanwha contracts.
• Preference was given to SMEs, but companies with more than 200 employees could apply and were assessed on a case-by-case basis.
• Applicants needed Hanwha’s support for their application. The Department may have verified this claim with Hanwha.
• The business must have been financially solvent.

Eligible Activities and Expenses

The grant funds specific activities that directly support a business’s ability to join Hanwha’s supply chain.

• Achieving or renewing quality and process certifications (e.g., ISO 9001).
• Tender writing and procurement support specific to defence contracts.
• Upgrades to business premises or installation of specialised equipment.
• New or improved defence products and service development.
• Research and development tailored to defence supply chain needs.
• Expenses related to participation in Hanwha-led trade missions and export initiatives.

Ineligible expenses include:

• Costs incurred before a grant agreement was signed.
• Normal business operating costs.

Assessment Process

This was a competitive grant process. Applications were assessed on a rolling basis.

Criteria included:

• Business capability and readiness to engage with Hanwha’s supply chains.
• The project’s potential impact on Victoria’s defence industry and economy.
• Relevance of the project to Land 8116 or Land 400 Phase 3 contracts.
• Financial plan and certainty of the matched funding.
• Demonstrated compliance with workplace health and safety and industrial relations obligations.

The program was administered by the Department of Jobs, Precincts and Regions. The Department reserved the right to offer a lower grant amount than what was applied for.

Recent Program Updates

The application period for this program closed on 30 June 2024. The program had an enhanced focus on helping SMEs engage with major defence programs. It aligned with Victoria’s broader Defence Capture Plan and economic development priorities.

Application Tips

• Applicants needed to register on Hanwha’s BenchOn portal before applying.
• They had to prepare accurate and realistic project budgets. The budgets had to reflect the mandatory 1:1 cash co-contribution.
• Applicants needed to provide detailed documentation. This showed compliance with health, safety, and industry standards.
• Proposed activities had to be closely aligned with Hanwha defence project requirements and Victorian supply chain objectives.
• Since the program was administered on a first-come, first-served basis, submitting applications early was important.
• Applicants were encouraged to seek government or specialist advice to strengthen their application.

Where to Get Help

Professional grant specialists like Pattens Group offered eligibility reviews and application support. For official program details, applicants were directed to the Victorian Government Business Victoria website and Hanwha Defence Australia’s portal.