Up to $50,000 to help New South Wales manufacturers assess advanced technologies through feasibility studies, business cases, pilot projects, prototyping, process testing and equipment assessments.
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What is the Innovative Manufacturing Adoption Fund (IMAF)?
The Innovative Manufacturing Adoption Fund (IMAF) is a three-year NSW Government competitive grant program supporting NSW manufacturers to adopt innovative technologies, strengthen manufacturing capabilities and improve productivity and competitiveness.
The Fund will be delivered in two stages:
Stage 1 – Discovery and Feasibility (now open)
- Stage 1 provides $1 million in funding to help manufacturers investigate new technologies and manufacturing capabilities before making larger-scale investments.
- Supported projects may include feasibility studies, business case development, pilot projects, prototyping, process testing, equipment assessments and certification activities.
Stage 2 – Implementation (opening early 2027)
- Stage 2 will provide $5 million in competitive grant funding to help manufacturers implement new technologies and scale their operations.
- The Fund supports manufacturers operating across a range of NSW industries, including construction and building products, clean energy products, transport and rolling stock, defence and aerospace, health and medtech manufacturing, advanced electronics, mining equipment and technology, agriculture, and food and beverage manufacturing.
- Participation in Stage 1 is not required to apply for Stage 2. However, Stage 2 applicants will need to demonstrate a strong business case for investment.
Innovative Manufacturing Adoption Fund level of support
Funding amount
- Minimum grant: $10,000
- Maximum grant: $50,000
- Total Stage 1 funding pool: $1 million
- Funding covers 50% of total eligible project costs
- A minimum 50% cash co-contribution is required
- Total eligible project expenditure submitted for funding can be up to $100,000
- Projects costing more than $100,000 can remain eligible, but the applicant must fund all costs above the $100,000 cap
The overall IMAF has $6 million allocated across three financial years from 2025–26 to 2027–28.
Co-contribution
- Applicants must provide a minimum 50% cash co-contribution towards total eligible project expenditure.
Payment
Funding is paid in two instalments:
- 80% after the Funding Agreement is signed and required documentation is provided
- 20% after project completion and submission of satisfactory evidence of eligible expenditure and a completion report
- Applicants must provide evidence of expenditure, including tax invoices and proof of payment
Innovative Manufacturing Adoption Fund important dates
- Applications close: 6 October 2026 at 5:00 pm, or earlier if funds are fully allocated
- Maximum project period: 4 months
- Stage 2 expected to launch: Early 2027
- Register your interest with GrantHelper
Applications are assessed as they are received, with funding allocated on a first-come, first-served basis to applicants meeting the eligibility and assessment criteria. The published dates are subject to change.
Innovative Manufacturing Adoption Fund objectives
The Fund aims to strengthen the capability, productivity and competitiveness of NSW manufacturers by accelerating the adoption of advanced technologies, processes and systems.
The Fund supports manufacturers to:
- Improve productivity, efficiency and operational performance
- Build advanced manufacturing capability
- Win higher-value work through new export markets
- Win higher-value work through government procurement opportunities
- Create and retain skilled jobs
- Make informed decisions before investing in new technology
Projects and expenditure eligible for Innovative Manufacturing Adoption Fund support
Stage 1 supports manufacturers to engage an external consultant or manufacturing service provider to investigate adopting an eligible target technology.
Projects must be completed within four months.
Eligible activities include:
- Feasibility studies
- Business case development
- Pilot projects
- Prototyping
- Process testing
- Assessment of new equipment
- Assessment of software or systems
- Certification and compliance requirements
Projects must result in an evidence-based report that:
- Assesses the technical feasibility of adopting the proposed technology
- Assesses the commercial viability of adopting the proposed technology
- Provides a recommended pathway for adoption
- Demonstrates how adoption of the technology could be transformative for the business
The report can form the basis for consideration under Stage 2.
Target technologies
Projects must investigate the adoption of one or more of the following:
- Additive manufacturing
- Precision machining
- Electronics and mechatronics manufacturing
- Advanced materials and processing
- Robotics and automation
- Digital manufacturing and Industry 4.0 capabilities
- Advanced quality and inspection systems
Eligible expenditure
Eligible expenditure must be reasonable, necessary and directly related to delivering approved project activities.
- Activities and associated expenditure should occur within NSW
- Expenditure outside NSW must be justified
- At least 75% of the project budget must be spent on external consultant or manufacturing service provider fees and disbursements
- Eligible external costs can include advice and technical services
- Eligible external costs can include pilot production runs and samples
- Eligible external costs can include assessment and testing of equipment, software and processes
- External costs must align with the provider’s proposal and be consistent with market rates
- Up to 25% of the project budget may be used for internal wages necessary to facilitate project delivery
Ineligible activities
Funding cannot be used for:
- Internally produced business cases
- Pilot projects or testing conducted internally
- Purchase of machinery, equipment or physical hardware
- Training and skills development
- Capital works
- Activities that do not align with the Fund’s objectives
- Activities that do not focus on manufacturing capability
- Activities already funded through another government program
- Activities commencing before the application is submitted
- Other activities considered inconsistent with program requirements
Machinery, equipment, physical hardware, training and skills development may instead be supported through Stage 2.
Ineligible expenditure
The following costs are not eligible:
- Purchase or lease of equipment
- Research and development not directly related to the approved project
- General administrative expenses
- Ongoing operational expenses
- Equipment maintenance and repairs
- Standard IT equipment unrelated to project testing or delivery
- Software unrelated to project testing or delivery
- Activities undertaken before the application was submitted
- Property or land acquisition
- Costs associated with applying for the grant
- Costs associated with complying with grant obligations
Other Innovative Manufacturing Adoption Fund important details that you will need to know
Organisations eligible for Innovative Manufacturing Adoption Fund support
To be eligible, a business must:
- Have an active Australian Business Number (ABN)
- Be an Australian corporation
- Be headquartered in NSW
- Have an account with an Australian authorised deposit-taking institution
- Have at least $1 million turnover in each of the two financial years before applying
- Have between 10 and 100 full-time equivalent employees
- Operate a manufacturing facility in NSW
- Operate in a manufacturing industry under a relevant ANZSIC code or Business Industry Code
- Demonstrate current or potential advanced manufacturing capability within a target sector
- Be investigating adoption of one or more eligible target technologies
- Provide a minimum 50% cash co-contribution towards total eligible project expenditure
Ineligible applicants include:
- Insolvent businesses
- Individuals and sole traders
- Unincorporated associations
- Trusts or trustees
- Partnerships
- Tax-exempt entities
- Bankrupt entities
- Entities subject to ongoing legal proceedings
- Australian Government agencies
- NSW Government agencies
- Local government entities or authorities
- State-owned corporations
- Statutory authorities
- Australian subsidiaries of international companies
- Businesses not supplying or intending to supply a target sector
- Businesses receiving or previously receiving Australian Government funding for the same, similar or related grant activities
Innovative Manufacturing Adoption Fund assessment criteria
Applicants must address all three assessment criteria. Eligible applications progress to competitive assessment.
1. Impactful Upgrade – 55%
Applicants must demonstrate:
- How the proposed target technology addresses a capability gap in current manufacturing operations
- How adoption could increase production output
- How adoption could improve product quality
- How adoption could enable manufacturing of new products
- How adoption could reduce maintenance requirements
- How adoption could reduce downtime
- How adoption could reduce energy consumption
- How adoption could enable access to new customers
- How adoption could enable access to new markets
- How adoption could increase the competitiveness of the business
2. Project Quality and Delivery – 30%
Applicants must demonstrate:
- How the project will assess the feasibility of adopting the target technology
- A clear methodology for evaluating costs
- A clear methodology for evaluating risks
- A clear methodology for evaluating benefits
- A clear methodology for evaluating implementation requirements
- A realistic project timeline
- Appropriate and achievable milestones
- A fit-for-purpose project budget
- Value for money
- Relevant expertise and experience of the proposed external consultant or service provider
- Consultant or provider expertise relevant to the target technology and/or manufacturing assessment
3. Alignment with NSW Government Strategic Objectives – 15%
Applicants must demonstrate alignment with:
- The objectives of the IMAF guidelines
- NSW Industry Policy priorities
- NSW Innovation Blueprint priorities
- NSW Trade and Investment Strategy priorities
How do I get the Innovative Manufacturing Adoption Fund support?
To put forward a competitive application, applicants should demonstrate:
- A genuine manufacturing capability gap that the proposed technology will address
- A clear need for the proposed technology
- Strong potential for measurable productivity or quality improvements
- Potential to increase manufacturing output or enable new products
- Potential to reduce downtime, maintenance or energy consumption
- Clear commercial benefits from technology adoption
- Potential to reach new customers or markets
- Potential to improve business competitiveness
- A robust approach for assessing technical feasibility and commercial viability
- A clear methodology for evaluating costs, risks, benefits and implementation requirements
- A realistic four-month project plan with achievable milestones
- A well-supported and value-for-money budget
- An appropriately qualified external consultant or manufacturing service provider
- Clear alignment with the Fund’s objectives and relevant NSW Government strategic priorities
- Capacity to provide the required minimum 50% cash co-contribution
- A credible pathway towards adopting the technology if the investigation demonstrates viability
Because applications are assessed as received and funding is allocated first-come, first-served to applications meeting the requirements, eligible businesses should consider preparing and submitting a strong application as early as practical.
Information to prepare for the Innovative Manufacturing Adoption Fund support
Applicants must provide:
- Financial statements for the previous two financial years
- Balance sheets for the previous two financial years
- Profit and loss statements for the previous two financial years
- A Business Activity Statement, Payroll Tax Statement or accountant’s letter confirming current FTE employees
- Any other supporting evidence required by the application form
Applicants must also obtain a proposal from an external consultant or manufacturing service provider covering:
- Purpose of the engagement
- Description of the capability gap or opportunity
- Statement of need or problem definition
- Scope of work
- Project methodology
- Proposed deliverables
- Expected productivity or quality improvement metrics where appropriate
- Project plan
- Project timeframe
- Budget and cost breakdown
- Details of key personnel
- Relevant experience of key personnel
Applying for the Innovative Manufacturing Adoption Fund support
Applications must be submitted through the SmartyGrants online application form.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Innovative Manufacturing Adoption Fund resources
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