Victorian Freight Decarbonisation Co-Investment Program

Purpose and Program Overview

The Victorian Freight Decarbonisation Co-Investment Program (VFDC Program) is a Victorian Government initiative designed to support small and medium-sized land freight operators in transitioning to zero and low-emission vehicles and technologies. The program aims to reduce greenhouse gas emissions from the freight sector, build industry knowledge, and encourage the adoption of next-generation vehicles and infrastructure across Victoria.

Funded through Victoria Delivers: Victorian Freight Plan 2025–2030, the program provides $8 million over two years through a co-investment model. It addresses key barriers facing the freight industry, including uncertainty around vehicle range, charging infrastructure, and whole-of-life costs.

The longer-term outcomes of the program include reducing emissions from freight transport, enhancing industry understanding of decarbonisation opportunities, and boosting long-term productivity by supporting next-generation vehicles and infrastructure while reducing operating costs. The program also aims to improve community amenity through cleaner air and quieter freight routes.

Key Grant Details

• Maximum grant amount: Up to $300,000 (excluding GST) per eligible applicant
• Total funding pool: $8 million
• Expression of Interest (EOI) open: 8:30 am, 23 March 2026.
• EOI close: 4 pm, 22 April 2026
• Applications open (by invitation only): May 2026
• Applications close: June–July 2026
• Notification of outcomes: October 2026
• Eligible businesses: Small to medium land freight operators registered and operating in Victoria, employing 200 or fewer full-time equivalent employees
• Co-contribution required: Yes — minimum 1:5 ratio (i.e., a $300,000 grant requires a minimum $60,000 cash co-contribution from the applicant); co-contributions must be cash, not in-kind; government funding from another program cannot be used as the co-contribution
• Location: Victoria, Australia

Priority Sectors

The program is targeted at the land freight sector. Typical eligible businesses include road and rail freight transport operators, freight forwarding and logistics providers, courier and delivery businesses, and waste and bulk transport operators.

Eligible ANZSIC codes include:

• 4610 Road Freight Transport; 4710 Rail Freight Transport; 5292 Freight Forwarding Services; 5299 Other Transport Support Services; 6619 Other Motor Vehicle and Transport Equipment Rental and Hiring; 5102 Courier Pick-up and Delivery Services; 2911 Solid Waste Collection Services; and 2919 Other Waste Collection Services. Other ANZSIC codes may be considered at the Department of Transport and Planning’s (DTP) discretion.

Funding Scope

Individual grants of up to $300,000 (excluding GST) are available. The program operates as a single funding stream rather than tiered streams, with co-investment required from all applicants.

Key funding parameters:

• Maximum grant per applicant: $300,000 (ex GST)
• Minimum co-contribution: 1:5 ratio — for example, a grant of $300,000 requires a minimum co-contribution of $60,000 (ex GST)
• Project completion timeline: All funded milestones must be completed within 18 months of signing the grant agreement. Extensions, such as for infrastructure projects, are at the discretion of the Department of Transport and Planning.

Eligibility Criteria

To be eligible for the program, applicants must meet all of the following requirements:

• Hold an Australian Business Number (ABN) registered since 30 June 2022
• Be registered and operating in Victoria.
• Employ 200 or fewer full-time equivalent (FTE) employees.
• Be financially viable and not insolvent, with no directors who are undischarged bankrupts.
• Be able to enter into a grant agreement with the Victorian Government.
• Be able to provide three years of audited financial statements.
• Hold a WorkSafe Certificate of Currency, if applicable.

The following entities are not eligible:

• Government entities, overseas organisations, businesses with ABNs registered interstate, businesses employing more than 200 FTE employees, businesses not engaged in land freight operations, passenger transport services, and insolvent businesses or those with directors who are undischarged bankrupts

Eligible Activities and Expenses

To be eligible for funding, projects must support the shift to zero and low-emission freight vehicles and cleaner technologies. Eligible activities include:

• Buying or leasing low or zero-emission freight vehicles (including eligible second-hand vehicles that meet Australian Design Rules)
• Fit-outs or retrofits that customise a new vehicle for its freight task (e.g. refrigerated bodies, tail-lifts, specialised equipment)
• Installing charging or refuelling infrastructure (e.g. electric chargers, depot upgrades)
• The cost of charging or refuelling new low or zero-emission vehicles
• Adopting low-carbon liquid fuels such as renewable diesel or biodiesel
• Trying new technologies or innovative business ideas that reduce emissions
• Other proposals that contribute to program objectives, subject to DTP discretion

Ineligible expenses include:

• Routine operating or maintenance costs
• Work commenced before the grant agreement was signed
• Government funding is used as a co-contribution

Assessment Process

The program uses a two-stage, competitive application process: an Expression of Interest (EOI) stage followed by a full application (by invitation only).

Stage 1 – Expression of Interest:

EOIs and applications are assessed based on business eligibility, alignment to reduce freight emissions, and the applicant’s ability to deliver the project on time.

Stage 2 – Full Application (Invited Applicants Only):

Invited applications are scored on project alignment, design, delivery capability, and financial viability. The Minister makes final decisions for Ports and Freight.

Priority considerations:

Projects with greater emissions reductions, shared-use infrastructure, or stronger co-contributions may be prioritised.

Recent Program Updates

• The program guidelines were updated in March 2026 (Version 0.4), with the EOI phase opening on 23 March 2026.
• The program is funded under the Victoria Delivers: Victorian Freight Plan 2025–2030 policy framework.
• The EOI submission deadline is 4 pm, 22 April 2026 — applicants are encouraged to act promptly.

Application Tips

Applicants seeking to submit a strong EOI and subsequent application should consider the following practical steps:

1. Confirm eligibility early. Verify ABN registration date, employee count, Victorian registration status, and ANZSIC code alignment before commencing the EOI.
2. Prepare financial documentation. Applicants should have three years of audited financial statements ready and a current WorkSafe Certificate of Currency on hand.
3. Quantify emissions reductions. The assessment criteria favour projects with demonstrable, measurable reductions in freight emissions. Articulating specific emissions outcomes strengthens an application.
4. Maximise the co-contribution. Projects with stronger co-contributions may be prioritised during assessment. Where commercially feasible, offering a co-contribution above the minimum 1:5 ratio may improve competitiveness.
5. Do not commence work early. Projects must not begin until a grant agreement has been signed by both the successful applicant and the Victorian Government. Any work started before this point will not be funded.
6. Address the full scope. The EOI should clearly outline the proposed project, expected outcomes, delivery timeline, and funding request. Vague or incomplete submissions are unlikely to proceed to the application stage.
7. Align with program objectives. Frame the project around the program’s stated goals: reducing freight emissions, building industry capability, and trialling next-generation technologies.

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 website of the Victorian Freight Decarbonisation Co-Investment Program at vic.gov.au/vfdc and other associated Victorian Government websites.