Victorian Circular Economy Recycling Modernisation Fund – Round 6

Purpose and Program Overview

The Victorian Circular Economy Recycling Modernisation Fund (VCERMF) Round 6 is an initiative administered by Sustainability Victoria (SV) on behalf of the Victorian Government. The fund is co-funded through the Victorian Government’s circular economy policy, Recycling Victoria: A New Economy, and, for eligible materials, the Australian Government’s Recycling Modernisation Fund (RMF). The program provides capital grants to eligible organisations to build the capacity, capability, and resilience of Victoria’s resource recovery sector.

The fund supports the domestic reprocessing of specific target materials, improves the quality of recovered materials for manufacturing, and increases market demand for recycled commodities. It is designed to help businesses respond to national waste export regulations introduced following a 2020 Council of Australian Governments (COAG) agreement to phase out the export of waste plastic, mixed paper and cardboard, glass (regional only), and tyres from Australia.

Round 6 is a competitive, merit-based program. Applications are assessed on a rolling basis from the opening date of 10 December 2025 through to the closing date of 1 July 2026, or until funding is fully subscribed. Projects must be commissioned and operational by 30 April 2027.

Key Grant Details

• Grant Amount (For-Profit Businesses): $100,000 – $1,000,000 (ex GST) per application
• Grant Amount (NFPs, Social Enterprises & Local Government): $50,000 – $1,000,000 (ex GST) per application
• Applications Open: Wednesday 10 December 2025
• Applications Close: Wednesday 1 July 2026, 11:59 pm (or until funding is fully subscribed)
• Assessment Basis: Rolling (as received)
• Eligible Organisation Types: Australian businesses, social enterprises, Victorian local government organisations, and other not-for-profit organisations
• Co-Contribution Required: Yes – see Section 3 for details
• Location: Victoria, Australia (projects must be located in and service Victoria)
• Project Completion Deadline: 30 April 2027

Priority Sectors and Target Materials

The fund targets specific materials and processing stages as outlined in the program guidelines. The following materials are eligible:

• Hard-to-recycle plastics (including e-plastics, EPS/PS, flexible packaging plastics, and agricultural plastics)
• E-waste (including photovoltaic panels, batteries, vapes, and household appliances)
• Tyres – recovery to create crumb rubber for local markets only (no other tyre recovery projects are eligible)
• Liquid paperboard / liquid packaging board
• Textiles

The fund does not support energy-from-waste solutions, materials outside those listed above, or projects that solely manage a business’s own internally generated waste without providing services to external customers.

Funding Scope

Funding Structure by Organisation Type

• For-Profit Businesses: Minimum $100,000 – Maximum $1,000,000 (ex GST). Co-contribution of at least $2 for every $1 of grant funding is required.
• Social Enterprises, Not-for-Profits & Local Government: Minimum $50,000 – Maximum $1,000,000 (ex GST). Co-contribution of at least $1 for every $1 of grant funding is required.

Eligible Infrastructure Types (per Table 1 in Guidelines)

• Sorting infrastructure
• Primary processing equipment
• Secondary sorting and secondary processing infrastructure
• Baling and storage (agricultural plastics only, under hard-to-recycle plastics)

Note: Shredders are only eligible in conjunction with further reprocessing equipment.

Project Timeline

• Applications Open: 10 December 2025
• Applications Close: 1 July 2026
• Project Completion Deadline: 30 April 2027
• Funding Agreement Execution: Within 60 days of notification of a successful outcome (30 days upon receipt of the funding agreement via DocuSign)

Eligibility Criteria

Who Can Apply

• Australian businesses (including for-profit and social enterprises)
• Victorian local government organisations
• Not-for-profit organisations, ideally registered on the ACNC charity register
• Social enterprises registered with Social Traders or able to prove accreditation before entering a funding agreement

Key Requirements

• Must hold a current Australian Business Number (ABN) that has been active for a minimum of 2 years by the application closing date (1 July 2026)
• Must demonstrate financial viability to meet or exceed the minimum co-contribution requirements
• Must agree to comply with Sustainability Victoria’s Terms of Participation – Grants Funding Programs
• Must agree to comply with SV’s General Grant Funding Agreement terms and conditions
• Applicants seeking $500,000 or more (ex GST) must submit a Fair Jobs Code Pre-Assessment Certificate Number with their application
• Must have adequate insurance: Public Liability minimum $10M; Professional Indemnity minimum $5M (if required); and WorkCover
• Must have had no unresolved Environmental, Safety or Workplace Breaches in the last five years
• Must not have been subject to an enforceable undertaking or successful litigation under the Fair Work Act 2009 within the last five years

Who Cannot Apply

• Individuals
• Unincorporated entities
• Organisations that have been operating for less than two years

Eligible Activities and Expenses

What Will Be Funded

• Purchase, installation, and commissioning of new equipment or upgrades to existing equipment used to provide services to external customers
• Capital purchases: equipment only, including shipping, installation, and commissioning costs

Ineligible Expenses

The following costs are explicitly excluded from funding:

• In-kind contributions
• Civil works, site preparation, earthworks, and construction of slabs, sheds, or buildings
• Electrical works (other than the electrical installation of funded equipment)
• Lease or purchase of land
• Permits, licensing, or approval costs
• Routine or cyclical maintenance
• Operating costs (staff salaries, utilities)
• Consultancy, project management, marketing, or advertising costs
• Purchase of vehicles (e.g. front-end loaders, forklifts)
• Business case development, feasibility studies, or R&D activities
• Leasing of equipment
• Travel, conferences, training, or educational activities
• Contingency costs and fuel costs

Assessment Process

The VCERMF Round 6 is a competitive, merit-based grant program. Applications are assessed on a rolling basis by an assessment panel in consultation with the Australian Government. The assessment criteria and weightings are as follows:

• Assessment Criterion Weighting & Key Considerations
• What (Project Description) 30% – Project meets primary fund objectives; funding request is for equipment only, with quotes; market supply and demand demonstrated.
• Why (Rationale) 20% – Demonstrated need for government support; addresses a priority material; job creation outcomes.
• Who (Capability) 20% – Applicant (and any Project Partners) can deliver the project; written internal approvals and budget allocations provided.
• How (Delivery Plan) 30% – Sound project approach; co-contribution capacity; itemised budget with evidence; value for money; realistic timeframes; risk identification and mitigation.

Due Diligence

A risk-based due diligence assessment will be conducted on all applicants, related entities, project partners, and project participants. This includes a review of environmental, safety, financial, and workplace compliance history. SV reserves the right not to award funding where due diligence risk is deemed unsatisfactory.

Recent Program Updates

• Round 6 opened on 10 December 2025 with rolling assessment up to the 1 July 2026 closing date.
• The maximum grant amount has been increased from $500,000 to $1,000,000 (ex GST) since the information session was recorded. Applicants should refer to the current program guidelines for the correct maximum amount.
• The fund operates under the Victorian Government’s Recycling Victoria: A New Economy policy, backed by a $380 million commitment to establish a reliable and modern recycling system in Victoria.
• The Australian Government’s Recycling Modernisation Fund is contributing over $200 million towards new and upgraded recycling infrastructure nationally, targeting $1 billion in total investment when including state, territory, and industry co-contributions.
• Sustainability Victoria has announced that it will be abolished in 2026 following the government’s response to the Silver Review. Applicants should monitor official communications for any changes to program administration.

Application Tips

• Review the program guidelines carefully to confirm that the organisation and project meet all eligibility requirements before commencing an application.
• Watch the official information session (available on Sustainability Victoria’s website) before beginning the application form.
• Prepare quotes from equipment suppliers, including delivery timeframes, before submitting. The application requires itemised evidence of project costs.
• Ensure all regulatory and planning approvals (including EPA approvals) are in place or clearly on track before submitting. SV will not enter into a funding agreement without the required EPA approvals.
• Applications requesting $500,000 or more must obtain a Fair Jobs Code Pre-Assessment Certificate before lodging an application.
• Applications are submitted via SmartyGrants. Save progress frequently and allow adequate time to complete the form. Submitted applications cannot be amended.
• Maximise co-contribution amounts where possible, as higher co-investment will be assessed more favourably.
• Applicants with projects requiring investment facilitation support are encouraged to engage SV’s free Application Review and Advisory Service before 19 June 2026.
• One application per ABN per facility is permitted. Confirm with internal stakeholders that no duplicate applications will be lodged.
• Address all four assessment criteria (What, Why, Who, How) with clear, evidence-based responses.

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 Australia’s best grant specialist, 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 Sustainability Victoria website and other associated Australian government websites.