Grants up to $2 million for the translation of research into devices and systems for commercialisation, and deliver social, economic and environmental benefits to NSW.
Current status of program
CLOSED
To register your interest in future rounds or discuss alternative grant opportunities please contact us here.
On this page you will find
What is the NSW Physical Sciences Fund (PSF)?
The Physical Sciences Fund (PSF) is a $3.5 million competitive technology development and commercialisation program funded by the NSW Government. It is administered by the Office of the NSW Chief Scientist & Engineer (OCSE) within the NSW Department of Enterprise, Investment and Trade (DEIT).
The PSF began in 2019 as an annual $5 million program funded by the NSW Government. Through the first four rounds, the PSF awarded over $19 million to 18 companies in areas such as mining, communications, agriculture and farming, AI and robotics, hydrogen, aviation and space.
At the application stage, applicants will provide an estimated TRL (ranging from TRL 3 to TRL 7) for the project at the commencement date and at the completion date. Further details regarding the TRL scale are available in Appendix A, Table 3 of the guidelines.
PSF level of support
Grants
- Minimum amount – $200,000
- Maximum amount – $2,000,000
The applicant must repay the grant if the organisation achieves a specified level of economic success from project outcomes (e.g. once the recipient reaches an agreed revenue threshold through the commercialisation of the device or system).
Successful applicants will be required to pay back grant funds where the corresponding spending was not in accordance with the Deed of Agreement.
Co-contribution
- Applications can include co-funding proposals and potential leveraging opportunities. If other in-kind assistance is sought, these should be included in proposals where feasible, and will be considered during the assessment process.
PSF important dates
- This program is currently closed
- Register your interest here with GrantHelper
PSF objectives and outcomes
The overall objectives of the Program are to:
- improve commercialisation opportunities for NSW-based startups and businesses
- provide financial support to progress the development of new and innovative devices and systems across the branches of the physical sciences and engineering, including physics, chemistry, astronomy and the earth sciences
- to realise benefits from innovation in NSW.
The intended outcomes of the Program are to:
- help promising startups develop their technologies, to the point they attract future funding and investment
- support the growth of innovative global companies headquartered in NSW
- deliver social, economic and/or environmental benefits in NSW. The PSF targets companies with innovative devices/ systems within the Technology Readiness Level (TRL) range of 3 – 7 and aims to help them move along the TRL scale and commercialise their idea.
Activities and expenditure eligible for PSF support
For a grant activity to be eligible it must:
- have a maximum project period of two years (unless there are exceptional circumstances). Projects will require clear and achievable milestones (e.g. moving from TRL 3 to TRL 5) to support appropriate staging and monitoring
- seek to progress an innovation along the commercialisation pathway
- have an existing prototype/proof-of-concept
- be TRL 3-7 on the TRL Scale (Figure 1)
- demonstrate why sufficient funding for the entire project cannot be accessed from alternative sources and that the project would not proceed at the proposed scale in NSW without government support
For applications in digital technology or defence related technology, the following eligibility criteria apply:
- only digital technology systems that support a physical science project will be eligible for the PSF
- technologies that have applications in the Defence sector will only be deemed eligible for the PSF if its primary purpose and revenue stream is commercial applications
- the Subcommittee or the Expert Panel reserves the right to determine the eligibility of an application in software or defence-related technology based on the information provided in the application.
The majority of project activities should be based in NSW. In cases where project partners or project locations are outside NSW, the application should provide details as to why (e.g. providing a specific capability, expertise or technology that is not available in NSW).
To be eligible, costs must be used for:
- prototyping and piloting studies
- manufacturing and/or scaling
- conducting market research, testing and trials
- regulatory approvals and other relevant certifications
- salaries and access to external expertise that is directly related to delivery of the project
- commercialisation strategies and commercial feasibility studies
- project consumables directly related to delivery of project outcomes
- specialist equipment and/or infrastructure necessary to progress the project
- intellectual property protection or advice.
The grant cannot be used for the following activities:
- the purchase of land or property
- costs incurred in the preparation of a grant application or related documentation
- overseas travel
- the covering of retrospective costs
- wage costs incurred prior to the activity period of the project or outside of approved project activities
- projects requiring ongoing funding from the NSW Government
- projects that are ongoing or constitute the normal course of business
- activities that have commenced or been completed prior to an offer of funding made to successful applicants
- activities that will not be delivered prior to the end of the grant funding period.
See the guidelines for full details of activities and expenditure eligible for PSF support.
Other PSF important details that you will need to know
Organisations eligible for PSF support
To be eligible for the Program applicants must:
- have an Australian Business Number (ABN)
- be registered for the purposes of GST
- be headquartered in NSW
- be one of the following:
- a company incorporated under the Corporations Act 2001 (Cth) (including a company limited by guarantee)
- an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and/or Torres Strait Islander) Act 2006 (Cth)
- an individual or partnership who agrees to form a company under the Corporations Act 2001 (Cth) so that DEIT can enter into a legally binding Deed of Agreement, or
- a NSW public research organisation or not-for-profit organisation applying through its appropriate technology transfer office or the Chief Executive Officer (or equivalent) of the organisation that will become a separate entity before entering into a legally binding Deed of Agreement with DEIT.
- Applicants must hold the Intellectual Property or the rights to commercialise the device/system/innovation.
- An applicant can only apply for one project per funding round.
You are not eligible to apply for the Program if you are:
- an Australian or NSW Government agency
- a not-for-profit organisation (with no plans to spin out)
- a local government
- a state owned corporation or statutory authority
- an Australian subsidiary or an international company
- a business with revenue (excluding grant funding) of more than $2.5 million in FY2022/23
- an insolvent business
- an individual, unincorporated association or partnership that will not form a company under the Corporations Act 2001 (Cth).
See the guidelines for full details of organisations eligible for PSF support.
PSF assessment criteria
Stage One assessment criteria: Preliminary Application
1. Innovation (35%)
- uniqueness of technology/science and the need for it
- technical viability of product including technological feasibility, consideration for safety, quality, efficacy and cost-effectiveness, and scalability
- expected progress from the estimated TRL at the project commencement date to the objective TRL at the completion date
- details of intellectual property/licensing, current and expected registration of patents, trademarks etc.
2. Commercialisation (35%)
- a clear path to commercialisation including a detailed business plan
- product market viability including market research, competitor analysis, customer engagement, legal and regulatory challenges, and profitability
- value proposition of the innovation and project including competitive advantages, value creation, market disruption potential, expansion opportunities including export potential and extent to which it addresses the identified problem
- economic, environmental and/or social benefits to NSW
3. Deliverability (30%)
- a detailed project plan, key tasks and milestones, cost estimates, and feasibility including risk management. Note: Projects will have a maximum project period of two years (unless there are exceptional circumstances). Projects will require clear and achievable milestones (e.g. TRL 3 to TRL 4) to support appropriate staging and monitoring
- operating and financial model to ensure the project can be commercially scaled over time
- the project team’s track record, expertise and capacity to successfully deliver the PSF project
- why sufficient funding for the entire project cannot be accessed from alternative sources; why the project would not proceed in its current scale in NSW without government support and how future funding will be accessed
- the applicant’s financial viability and sustainability in operation.
Stage Two assessment criteria: Full Application
- Shortlisted applicants that are invited to submit a Full Application must submit a more detailed application that is assessed by the Expert Panel.
- The Expert Panel will assess Full Applications on the extent to which proposals address the Assessment Criteria outlined above.
See the guidelines for full details of the assessment criteria.
How do I get the PSF?
Applicants must:
- Read and understand the guidelines.
- Ensure eligibility for the funding. Applicants that do not meet all the eligibility criteria will not be considered.
- Deliver the project as outlined in the application.
- Provide complete information requirements.
Information to prepare for the PSF application
Preliminary Applications must include:
- a brief overview of the organisation and project and how it meets the eligibility criteria
- details of the applicant/partners involved (including any existing collaborative partnerships with industry organisations) and the impact/rationale for the grant sought
- project plan showing the key tasks and milestones linked to your funding request
- why sufficient funding for the entire project cannot be accessed from alternative sources
- project/product development stage, the value and type of support requested
- details regarding the technology, details of IP/licensing and benefits to NSW
- description of commercialisation pathway, market analysis and value proposition
- capability the project team to successfully deliver outcomes
- a two-minute video clearly explaining the scientific and technological basis for the device/system (including imagery of the device/system), how it works, the intended outcome/benefit to the community, and how the funding would be used to drive commercialisation.
Full Applications must include:
- details of how the proposal would be implemented, the requirements for successful implementation and identified risks and their mitigants and/or controls
- detailed market strategy, competitor analysis, business model and pricing strategy
- details of the market structure (e.g. supply chain logistics, end customers, distribution stream)
- details of whether the applicant has other income streams, future funding of project and capital raising strategies
- details of the project governance structure (e.g. project board, advisory boards, stakeholders, etc.)
- demonstrated capability and capacity to deliver the project; benefits to NSW
- detailed financial submission including submission of audited or certified financial statements, year-to-date management accounts etc. (not applicable to new companies/spinouts)
- for new companies that will be spun out from research organisations, details on spinout process, spinout company information, organisation structure, financial structure, IP/licensing rights etc.
See the guidelines for full details of information requirements.
Applying for the PSF
Submit the online application form via the SmartyGrants system.
Register your interest here with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
PSF resources
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