Funding for SMEs to increase capability, capacity and competitiveness as suppliers of products, services and works to Western Australia, major projects and other important markets.
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 Local Capability Fund (LCF)?
The Local Capability Fund (LCF) is designed to help small and medium-sized enterprises (SMEs) in Western Australia boost their capability, capacity, and competitiveness as suppliers of products, services, and works to the WA Government, major projects, and other important markets.
The LCF offers different rounds of funding, each with its own focus:
- Aboriginal Business Round (with Clean Energy Incentive): Supports Aboriginal-owned SMEs to grow and compete, with bonus weighting for projects linked to the clean energy supply chain.
- Digital Transformation Round: Helps SMEs adopt digital tools and technologies to improve efficiency, productivity, and competitiveness.
- Standards Compliance Round: Assists SMEs with the costs of achieving certifications and standards needed for supply-chain entry and expansion.
- Supplying Key Projects Round: Builds SME capability to supply goods and services to WA Government and major industry projects.
- Regional Supplier Round: Strengthens regional SMEs by funding initiatives that improve market access and supply-chain participation.
Local Capability Fund level of support
Each round provides funding on a co-contribution basis, covering 75% of eligible costs, with applicants contributing the remaining 25%.
- Aboriginal Business Round (with Clean Energy Incentive): $5,000 – $50,000
- Digital Transformation Round: $5,000 – $25,000
- Standards Compliance Round: $2,000 – $20,000
- Supplying Key Projects Round: $5,000 – $20,000
- Regional Supplier Round: $5,000 – $25,000
Local Capability Fund important dates
- This program is currently closed
- Register your interest with GrantHelper
Local Capability Fund objectives
The Local Capability Fund supports WA SMEs to:
- Grow Aboriginal-owned businesses, with additional incentives for projects linked to the clean energy supply chain.
- Adopt digital tools and technologies that improve efficiency, productivity, and competitiveness.
- Achieve national and international standards or certifications required for supply-chain entry and expansion.
- Build capacity to supply WA Government strategic projects and major industry contracts.
- Strengthen the ability of regional SMEs to access new markets and participate in regional supply chains.
Projects eligible for Local Capability Fund support
1. Aboriginal Business Round (with Clean Energy Incentive)
Eligible projects include:
- Business planning and development
- Staff training and workforce development
- Certification and standards compliance
- Purchase or upgrade of specialised plant and equipment
- Consultancy support (e.g. marketing, finance, OHS, cybersecurity)
- Projects aligned with clean energy supply chains (receiving a 10% assessment weighting bonus)
2. Digital Transformation Round
Eligible projects include:
- Development of digital strategies and transformation plans
- Adoption of new ICT systems and tools (e.g. ERP, CRM, automation software)
- Cybersecurity upgrades and compliance improvements
- Training staff in digital tools and systems
- Online marketing and e-commerce development
- Purchasing/upgrading IT hardware and software that directly support digital business improvement
3. Standards Compliance Round
Eligible projects include:
- Gap analysis against required industry standards (e.g. ISO, AS/NZS)
- Consultancy support to prepare for certification
- Auditing, certification, and recertification costs
- Staff training directly linked to compliance standards
- Upgrading processes, systems, or equipment to meet certification requirements
4. Supplying Key Projects Round
Eligible projects include:
- Upgrading plant, equipment, or facilities to meet supplier requirements of WA Government or industry projects
- Workforce training to meet major project specifications
- Accreditation, standards, and compliance upgrades
- Tender preparation and contract negotiation support
- Market research and business development targeting identified projects
5. Regional Supplier Round
Eligible projects include:
- Market development activities to expand regional SME participation in supply chains
- Equipment purchases/upgrades necessary for regional operations
- Business planning and strategy development for regional growth
- Training and skills development for staff in regional locations
- Tender and proposal preparation for regional contracts
See the guidelines for full details of activities eligible for LCF support.
Other Local Capability Fund important details that you will need to know
Organisations eligible for Local Capability Fund support
To apply, businesses must:
- Have their principal place of business in WA (and remain based there for at least 12 months after applying).
- Have been operating in WA for at least three years.
- Be GST-registered and hold an ABN.
- Be solvent and a for-profit entity (or an incorporated not-for-profit Aboriginal Corporation operating commercially).
- Employ fewer than 200 full-time equivalent staff.
- Only submit one application per financial year (per ABN).
Local Capability Fund assessment criteria
Applications will be assessed based on:
- Relevance/Need – 40%
- Expected Outcomes and Impact – 30%
- Capability and Capacity – 10%
- Value for Money – 10%
- Financial Viability and Risk – 10%
How do I get the Local Capability Fund?
When applying, SMEs must demonstrate how their project meets the objectives of the specific round. This goes beyond eligibility — applicants need to show clear outcomes, value, and readiness.
1. Aboriginal Business Round (with Clean Energy Incentive)
Applicants should demonstrate:
- Majority Aboriginal ownership and active involvement in the business.
- How the project will grow capacity to compete for contracts and supply opportunities.
- A clear business case for training, equipment, certification, or consultancy support.
- Where applicable, how the project contributes to the clean energy supply chain (for bonus weighting).
2. Digital Transformation Round
Applicants should demonstrate:
- A defined digital strategy or clear plan for adoption of new technologies.
- How the digital investment will improve productivity, competitiveness, and supply-chain readiness.
- Staff capacity to implement and sustain new systems or processes.
- Tangible outcomes (e.g. efficiency gains, cost savings, access to new markets).
3. Standards Compliance Round
Applicants should demonstrate:
- The specific standard(s) or certification(s) being targeted (e.g. ISO, AS/NZS).
- Evidence of the need for compliance to access contracts or supply chains.
- A realistic pathway (gap analysis, training, audits, certification).
- The expected impact of achieving certification on the business’s growth opportunities.
4. Supplying Key Projects Round
Applicants should demonstrate:
- Alignment with identified WA Government or industry project opportunities.
- Evidence that the project will position the SME to become a supplier.
- How infrastructure, equipment, or training upgrades directly respond to project requirements.
- The broader benefit to the supply chain, region, or industry.
5. Regional Supplier Round
Applicants should demonstrate:
- How the project increases capacity to access regional supply chains and markets.
- A strong business case for equipment, planning, or training in regional operations.
- Evidence of potential contracts, partnerships, or market opportunities.
- The long-term benefits to the regional economy and workforce.
Information to prepare for the Local Capability Fund application
Applicants should prepare the following before applying:
- ABN and GST registration details
- Business description and financial statements (balance sheet and P&L)
- Evidence of being operational in WA for at least three years
- Competitive supplier/consultant quotes (minimum of two per activity where possible)
- Supporting documentation such as project plans, certificates, or market evidence
Applying for the Local Capability Fund
Submit your application through the SmartyGrants portal.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Local Capability Fund resources
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