WA Local Capability Fund: Regional Supplier Round

Purpose and Program Overview

The WA Local Capability Fund: Regional Supplier Round is a Western Australian Government initiative. It provides funding to businesses in regional WA. The program helps them improve their capacity, capability, and competitiveness. The objective is to help regional SMEs supply to major projects and markets. This includes export markets, Western Australian or local government agencies, the Australian Government, and the private sector.

This grant is part of the larger Local Capability Fund. The fund aims to help businesses grow in their regions. It helps them overcome barriers to entering broader supply chains. The program is an important tool for economic diversification and growth in regional Western Australia.

The fund strengthens the business infrastructure of regional SMEs. It helps them compete for contracts. This aligns with broader government goals to support regional economies and create local jobs.

Key Grant Details

• Grant amount: Up to $20,000 per successful applicant.
• Application open: The 2025–26 funding round is now open.
• Application close: 4 September 2025 at 3:00 PM AWST.
• Eligible industries/business types: For-profit SMEs with fewer than 200 employees. The business must be based in one of the nine designated regions of Western Australia.
• Co-contributions: Applicants must provide a 50% co-contribution of eligible project costs.
• Location/state/territory applicability: Western Australia only. The business’s principal place of business must be in one of the eligible regions.

Priority Sectors

The grant is open to a broad range of sectors. The fund supports businesses that primarily supply goods or services to businesses or the government. It is not for businesses that rely on walk-in retail trade.

Funding Scope

• Minimum and maximum amounts per stream: Funding is up to $20,000. To receive the full amount, the project must have eligible costs of at least $40,000.
• Categories or streams of funding: Funding supports business capability and capacity. This includes:
  • Strategic and business planning.
  • Improvements to internal business infrastructure.
  • Staff training and upskilling.
  • Acquiring new or specialised plant, equipment, and software.
• Project timeline: Projects should be completed and claims submitted within the financial year.

Grant Amount in Total

The total funding available for all 2025–26 Local Capability Fund rounds is approximately $5 million. A portion of this is for the Regional Supplier Round. Each region has $100,000 initially reserved.

Eligibility Criteria

• The business must be a for-profit organisation or an incorporated not-for-profit Aboriginal corporation operating commercially.
• The business must have its principal place of business in one of the nine specified regions in Western Australia.
• The business must have been operating in that region for at least 12 months.
• The business must have an active ABN.
• The business must be registered for GST for at least 12 months.
• The business must have at least one full-time employee, besides the owner. The business must have fewer than 200 employees.

Eligible Activities and Expenses

The grant supports activities that enhance business capability. This includes:

• Purchasing new or second-hand specialised equipment or machinery.
• Upgrading business facilities.
• Acquiring specialised computer hardware and software.
• Staff upskilling and training.
• Engaging external consultants for business and marketing plans.
• Costs for pre-qualification requirements.
• Related freight and installation costs.

Assessment Process

This is a competitive, merit-based grant. An independent Assessment Panel reviews applications. Applications are evaluated based on:

• Relevance or need of the project (40% weighting).
• Expected outcomes or impact (30% weighting).
• Capability and capacity of the business (10% weighting).
• Value for money (10% weighting).
• Financial viability and risk (10% weighting).

Recent Program Updates

The 2025–26 Regional Supplier Round is open for applications. The application closing date is 4 September 2025. There is an ongoing focus on helping regional businesses enter broader supply chains.

Application Tips

• Double-check that your business and project meet all eligibility criteria.
• Prepare a clear and concise application. Simplify any technical details.
• Start early to gather quotes and all required documents. Applications without these will receive a lower score.
• Highlight how your project will help your business compete in larger markets.
• Ensure your budget shows the 50% co-contribution clearly.

Where to Get Help

Consider consulting with a professional grant specialist like Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit relevant government websites for application templates and further guidance.