Transforming Queensland Manufacturing Grants Program

Purpose and Program Overview

The Transforming Queensland Manufacturing Grants Program is a Queensland Government initiative designed to strengthen the competitiveness, productivity and resilience of small to medium manufacturing businesses across the state. It supports manufacturers to adopt advanced technologies, expand into new markets and secure long‑term growth and high‑value employment in Queensland.

The program provides a total funding pool of $79.1 million over three years, delivered through six competitive rounds, with a new round scheduled approximately every six months. Round 1 allocates $12.5 million in matched funding, enabling eligible manufacturers to undertake projects that improve productivity, facilitate export pathways, reshore or onshore activity, and stimulate private sector investment.

By targeting investment in advanced manufacturing equipment and Industry 4.0/5.0 technologies, the grants program underpins Queensland’s broader Transforming Queensland Manufacturing Strategy 2025–30 and supports the state’s ambition to build a more innovative, globally competitive manufacturing base.

Key Grant Details

• Grant amount (per project): Minimum $100,000, maximum $1,500,000 in matched funding.
• Total program funding: $79.1 million over three years.
• Round 1 allocation: $12.5 million.
• Application status: Round 1 applications open now and close Thursday, 16 April 2026 at 1:00 pm (AEST); late applications are not accepted.
• Eligible business types: Queensland-based small to medium manufacturing enterprises (SMEs) with a majority turnover from manufacturing (ANZSIC Division C).
• Required co-contribution: Matched funding, with grant funding generally covering up to 50% of eligible project costs; minimum 50% cash co-contribution required.
• Location: Applicants must be based in Queensland, with funded projects delivered in Queensland.
• Payment structure: Grant payments are usually made in arrears against milestones; an upfront payment of up to 20% may be available, subject to security and program conditions.​

Priority Sectors

The program specifically targets manufacturers, with eligibility restricted to businesses whose primary activity is classified under ANZSIC Division C – Manufacturing. Within this, the grants support manufacturers adopting advanced technologies and pursuing export, reshoring or productivity-focused projects rather than specifying narrow industry sub‑sectors.

As a result, the program is suitable for a broad range of manufacturing subsectors (for example, food and beverage, metal products, machinery and equipment, chemical products, and other eligible manufacturing activities), provided they meet the core manufacturing and eligibility requirements.

Funding Scope

• Minimum and maximum amounts:
  • Minimum grant: $100,000.
  • Maximum grant: $1,500,000.
• Funding structure:
  • Matched funding model, with grants generally covering up to 50% of eligible project costs.
  • Applicant must provide at least 50% cash co-contribution; in‑kind contributions are not counted towards the matched funding requirement.​
  • Payments are typically milestone-based in arrears, with potential for an initial payment of up to 20% subject to security arrangements.​
• Project focus and scope:
  • Projects must involve investment in advanced manufacturing equipment or Industry 4.0/5.0 technologies that deliver measurable productivity, competitiveness, export or reshoring benefits.
  • Projects are expected to be ready to commence, with clear implementation plans, timelines and risk management.
• Project duration:
  • Detailed guidance on maximum project duration is set out in the official program guidelines; projects generally need to be completed within the timeframe specified for the round and the three‑year program window.

Eligibility Criteria

Applicants must generally meet the following key eligibility requirements:

• Be a Queensland-based manufacturing SME.
• Derive the majority of turnover from manufacturing activities (ANZSIC Division C).
• Employ between 5 and 200 full-time equivalent (FTE) employees, including any group entities.​
• Have operated in Queensland for at least three consecutive years prior to applying.​
• Have at least five FTE employees located in Queensland.​
• Be the manufacturing entity that will own and operate the funded equipment.​
• Hold an active Australian Business Number (ABN) and be registered for GST.
• Be financially viable and able to provide the required cash co-contribution and meet ongoing project costs.
• Not be a government entity, not‑for‑profit, charity or partnership, which are generally ineligible under the program.​

Applicants must also comply with all program terms, industrial relations, workplace health and safety and environmental obligations, as detailed in the official guidelines.

Eligible Activities and Expenses

The grant supports projects that involve investment in advanced manufacturing capability and technology‑driven upgrades that improve productivity and competitiveness. Examples of eligible activities and expenditure (subject to full guideline conditions) include:

• Purchase and installation of advanced manufacturing equipment and machinery (including automation, robotics and digitally enabled systems).
• Implementation of Industry 4.0/5.0 technologies such as smart sensors, data analytics platforms, integrated manufacturing execution systems and digital twins.
• Modifications to existing plant and equipment are necessary to integrate new advanced technologies, which are clearly linked to project outcomes.
• Specialist external services related to commissioning, integration and optimisation of new equipment and digital systems.
• Activities that support export market access, reshoring or onshoring of manufacturing currently undertaken interstate or overseas, where associated with advanced technology adoption.

Ongoing operational costs, routine maintenance, general working capital and retrospective expenditure are typically not eligible and should be checked against the program’s ineligible expenditure list.

Assessment Process

The Transforming Queensland Manufacturing Grants Program is competitive, with applications assessed against defined criteria rather than awarded on an entitlement basis. Only the highest‑scoring and best‑aligned projects within available funding for each round will progress to funding offers.

Key assessment criteria include:

• Productivity, competitiveness and profitability: Demonstrated capacity of the project to increase productivity, improve competitiveness and deliver measurable profitability improvements (e.g. throughput, lead time, margin or cost benefits).
• Export, reshoring and onshoring outcomes: Strength of the project’s contribution to export growth or to reshoring/onshoring manufacturing to Queensland.
• Jobs and workforce development: Evidence of job retention and creation of high‑value, high‑skill manufacturing roles, as well as workforce upskilling linked to advanced technologies.
• Strategic alignment and project delivery: Alignment with the business’s strategic direction, project readiness and feasibility, sound implementation planning, timelines and risk management.
• Value for money: Level of private sector co-investment, cost reasonableness and the extent of economic and regional benefits delivered for the grant investment.

Assessment is expected to occur over approximately 16 weeks from the round closing date, followed by contract negotiation and project commencement for successful applicants.​

Recent Program Updates

The Transforming Queensland Manufacturing Grants Program is a new initiative under the state’s Transforming Queensland Manufacturing Strategy 2025–30, with the first round announced and opened in February 2026. The program introduces a larger, structured grants package focused on advanced manufacturing, replacing or complementing earlier manufacturing support programs.

Round 1 has opened with $12.5 million available and applications closing on 16 April 2026 at 1:00 pm (AEST), and the program is scheduled to run six competitive rounds over three years. The Crisafulli Government has emphasised that at least 50% of the total funding is earmarked for regional manufacturers, reflecting a focus on statewide, including regional, manufacturing growth.

Application Tips

• Review the official program guidelines carefully to confirm eligibility, including business size, sector, Queensland presence and financial viability requirements.
• Define a clear, advanced manufacturing project that directly aligns with one or more program objectives: productivity improvement, competitiveness, export, reshoring or onshoring, and job creation.
• Prepare robust financial information, including evidence of your 50% cash co‑contribution and capacity to fund any non‑grant project costs.
• Quantify expected benefits wherever possible (for example, increased output, reduced waste or downtime, improved margins, expansion into new markets).
• Demonstrate project readiness with detailed implementation plans, realistic timelines, risk management, procurement processes and governance arrangements.
• Highlight workforce outcomes, including how the project will retain and create high‑skill roles and support staff training in advanced technologies.​
• Submit the application well before the published deadline to avoid last‑minute issues, noting that late applications are not accepted.

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 the best grant specialist in Australia, 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 Transforming Queensland Manufacturing Grants and other associated Australian government websites.