NSW Innovative Manufacturing Adoption Fund
The NSW Government has opened Stage 1 of the Innovative Manufacturing Adoption Fund (IMAF), providing matched funding grants of $10,000 to $50,000 to help eligible NSW manufacturers investigate the adoption of advanced manufacturing technology.
The $6 million fund will be delivered in two stages:
- Stage 1: $1 million for discovery and feasibility
- Stage 2: $5 million for implementation, expected to open in early 2027.
What can Stage 1 fund?
The grant can fund external expertise to investigate:
- Robotics and automation
- Digital manufacturing and Industry 4.0
- Additive manufacturing
- Precision machining
- Advanced materials and processing
- Electronics and mechatronics
- Advanced quality and inspection systems.
Eligible activities include feasibility studies, business case development, pilot projects, prototyping, process testing and assessment of new equipment, software or systems.
Who is eligible?
The business must:
- Be an Australian corporation with an active ABN
- Be headquartered in NSW
- Operate a manufacturing facility in NSW
- Have turnover of at least $1 million in each of the previous two financial years
- Employ 10–100 FTE employees
- Operate in an eligible manufacturing industry
- Be supplying, or intending to supply, a target sector
- Provide at least a 50% cash co-contribution.
Key dates
Applications close 6 October 2026 at 5:00pm.
Importantly, applications are assessed as received and funding is allocated first-come, first-served, subject to eligibility and assessment.
📌Frequently Asked Questions:Â
Q: How much funding is available?
Grants are between $10,000 and $50,000, covering 50% of eligible project expenditure.
The maximum eligible project cost for the grant calculation is $100,000. Projects can exceed $100,000, but the applicant must fund the additional costs.
Q: Can the grant pay for machinery?
No. Stage 1 does not fund the purchase or lease of machinery, equipment or physical hardware.
Training and capital works are also excluded. These may be eligible under Stage 2.
.
Q: What does the project need to deliver?
The project must produce an evidence-based report assessing:
- The technical feasibility of the proposed technology
- Its commercial viability
- A recommended pathway for adoption.
Q: Does the work have to be done by an external provider?
Yes. At least 75% of the project budget must be spent on an external consultant or manufacturing service provider.
Up to 25% can be used for internal wages where necessary to deliver the project.
Q: How long is the project?
The project must be completed within four months.
Q: What sectors are covered?
Target sectors include:
- Construction and Building Products
- Clean Energy Products
- Transport and Rolling Stock
- Defence and Aerospace
- Health and Medtech
- Advanced Electronics
- Mining Equipment, Technology and Services
- Agriculture
- Food and Beverage Manufacturing.
Solar panel and wind turbine manufacturing are specifically excluded.
Q: How will applications be assessed?
The assessment weighting is:
55% — Impactful Upgrade
The capability gap being addressed and the expected productivity and commercial benefits.
30% — Project Quality and Delivery
Methodology, costs, risks, benefits, timeline, budget and the external provider’s expertise.
15% — Strategic Alignment
Alignment with NSW Government industry, innovation and trade objectives.
Q: When is the grant paid?
The grant is paid in two instalments:
80% after the funding agreement is signed and required documentation provided.
20% after completion and submission of satisfactory expenditure evidence and the completion report.
Q:Do I have to apply for Stage 1 to access Stage 2?
No. Stage 1 participation is not required to apply for Stage 2.
Stage 2 is expected to open in early 2027 with $5 million in funding and will support implementation and scaling.
Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably.Â
Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.
Â
Click on the below buttons to access free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably
And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably. Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.
Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052
