WA Local Capability Fund: Supplying Key Projects Round

Purpose and Program Overview

The WA Local Capability Fund – Supplying Key Projects Round is a Western Australian Government initiative. It gives funding to help small to medium enterprises (SMEs) improve their capability and capacity. The goal is to help these businesses supply goods and services to major projects. These projects are from Western Australian State or Local Government agencies, the Australian Government, and the private sector.

This grant is part of the larger Local Capability Fund, which has a total funding pool of approximately $5 million across all rounds for the 2025-26 financial year. The fund helps businesses meet the requirements of large contracts. It supports economic growth by helping local businesses compete and win major work.

LCF Supplying Key Projects Round is a strategic part of the government’s plan to help local businesses. It aims to keep more of the economic value from major projects within the state. This helps create and maintain jobs in Western Australia.

Key Grant Details

• Grant amount: Up to $50,000 per successful applicant.
• Application open: 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 Western Australia.
• Co-contributions: Applicants must provide a 50% co-contribution of eligible project costs.
• Location/state/territory applicability: Western Australia only.

Priority Sectors

The grant is open to a broad range of sectors. However, this round focuses on assisting SMEs that supply to projects in these priority sectors:

• Energy (oil, gas, and renewables).
• Mining.
• Civil construction (including infrastructure related to water, earth, transport, and built environment).
• Defence.
• Marine.

Funding Scope

• Minimum and maximum amounts per stream: Up to $50,000. The project’s eligible costs must be at least $100,000 to receive the maximum grant.
• Categories or streams of funding: Funding helps with business capability and capacity. This includes:
  • Planning and business advice.
  • Improvements to internal business infrastructure and systems.
  • Staff training and skills development.
  • Acquisition of plant and equipment.
• 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. The specific amount for this round is not detailed.

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 Western Australia. It must have been operating there for at least three years.
• The business must have an active ABN.
• The business must be registered for GST for at least 12 months.
• The business must have fewer than 200 full-time equivalent employees.
• The business must be solvent.
• The business must primarily supply to other businesses or the government.

Eligible Activities and Expenses

LCF Supplying Key Projects Round supports activities that enhance business capability for key projects. This includes:

• Purchasing new or second-hand specialised equipment or machinery.
• Upgrading business operating facilities.
• Acquiring specialised computer hardware and software.
• Staff training and upskilling.
• Hiring external consultants for business planning and tender advice.
• Meeting pre-qualification requirements for supply chains.
• Related freight and installation costs.

Assessment Process

This is a competitive, merit-based grant. An independent Assessment Panel reviews applications. Key criteria include:

• 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 funding round is now open for applications. The closing date is 4 September 2025. The program continues to focus on helping WA SMEs to win work on major projects.

Application Tips

• Read the guidelines carefully to ensure your business and project are eligible.
• Provide a detailed project plan. Clearly explain how the funding will help you win contracts.
• Gather all required documents, including at least two quotes for each activity.
• Ensure your budget shows the 50% co-contribution.
• Apply early to give yourself time to address any potential issues.

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.