Grants up to $1 million for projects that increase waste recycling capacity and demand for recovered materials, reducing landfill and creating jobs in circular economy.
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 Victorian Circular Economy Recycling Modernisation Fund (VCERMF)?
The Victorian Circular Economy Recycling Modernisation Fund (Round 5) provides matched funding to Victorian businesses, local governments, social enterprises, and not-for-profit organisations to modernise and expand the state’s recycling infrastructure. This grant program specifically supports projects that recover and reprocess hard-to-recycle plastics and respond to the national waste export ban.
Jointly funded by the Victorian and Australian Governments, this program is part of the broader Recycling Victoria: A New Economy strategy and the national Recycling Modernisation Fund. It aims to reduce waste going to landfill, drive innovation in recycling, strengthen regional recycling capacity, and generate new jobs in the circular economy.
Victorian Circular Economy Recycling Modernisation Fund level of support
Grant
- Minimum amount: $250,000
- Maximum amount: $1,000,000
Co-contribution
- Applicants must provide a co-contribution of at least $1 for every $1 of grant funding received.
- Co-contributions must be cash-based and directly support eligible activities.
- In-kind contributions are not permitted.
- Projects with higher levels of co-investment will be viewed more favourably during assessment.
Victorian Circular Economy Recycling Modernisation Fund important dates
- This program is currently closed
- Register your interest with GrantHelper
Victorian Circular Economy Recycling Modernisation Fund objectives
The program aims to support Victoria’s transition to a circular economy by funding projects that:
- Increase recovery and local reprocessing of hard-to-recycle plastics (including e-waste and soft plastics)
- Expand domestic reprocessing and manufacturing of plastics impacted by the national export ban
- Improve the quality of recovered plastics to meet market requirements
- Increase the use and demand for recovered plastics in remanufacturing
- Support innovative recycling and manufacturing solutions
- Address infrastructure gaps, including those in regional and rural areas
- Create jobs in the resource recovery sector and broader circular economy
- Reduce waste going to landfill and enhance recycling system resilience
Projects and expenditure eligible for Victorian Circular Economy Recycling Modernisation Fund support
Eligible Projects
Projects must meet one or more of the program’s objectives and must:
- Be located at and service an existing facility in Victoria
- Target hard-to-recycle plastics, especially those with low recovery rates and limited recycling infrastructure
- Purchase, install, and commission new or upgraded equipment
- Source at least 50% of feedstock materials from within Victoria
- Be aligned with the Recycling Victoria: A New Economy policy and, where applicable, the national waste export regulations
- Comply with regulatory and planning approvals
- Be commissioned and operational by 30 April 2026
- Be registered under the National Framework for Recycled Content Traceability
- Provide a Fair Jobs Code Pre-Assessment Certificate (required for projects seeking $500,000+ in funding)
Multiple applications may be submitted by an organisation; however, only one project per applicant will be funded.
Ineligible Expenditure
The following activities and costs are not eligible for funding:
- Retrospective funding for projects commenced before written approval
- In-kind contributions
- Cash flow support
- Civil and site preparation works (e.g., construction of slabs, sheds, buildings)
- Upgrades to site infrastructure (e.g., fire management systems, unrelated electrical works)
- Purchase or lease of land
- Permits, licensing or approval costs
- Routine maintenance or operating costs (e.g., staff salaries, utilities)
- Marketing, advertising, or promotional expenses
- Consultancy or project management fees
- Equipment used only for managing internal waste with no external service provision
- Pre-construction activities (e.g., site clearing)
- Vehicles (e.g., forklifts, front-end loaders)
- Equipment not dedicated to the project’s purpose
Other Victorian Circular Economy Recycling Modernisation Fund important details that you will need to know
Organisations eligible for Victorian Circular Economy Recycling Modernisation Fund support
Eligible organisations include:
- Australian businesses (must have operated for at least 2 years)
- Social enterprises (registered with Social Traders or equivalent)
- Victorian local councils
- Not-for-profit organisations (preferably ACNC-registered)
Ineligible applicants:
- Individuals or unincorporated entities
- Organisations not operating the project facility
Applicants must also:
- Have a current ABN
- Meet financial viability checks
- Agree to SV’s grant terms and funding agreement
Victorian Circular Economy Recycling Modernisation Fund assessment criteria
Applications will be assessed on merit across four weighted criteria:
1. How — 30%
- Project delivery plan, timeline, and budget
- Co-contribution amount and financial readiness
- Delivery feasibility, including regulatory approvals
- Completion by 30 April 2026
2. What — 30%
- Project alignment with program objectives
- Equipment focus (quotes required)
- Market readiness and demand for feedstock and end-product
- Level of innovation and impact on infrastructure gaps
3. Who — 20%
- Capability and capacity of the applicant and any project partners
- Internal resourcing and budget approvals
- Project management experience and roles
4. Why — 20%
- Justification for funding need and consequences if not funded
- Impact on job creation and economic activity
- Relevance to priority materials
Due diligence will include checks on past regulatory breaches, financial standing, insurances, and compliance history.
How do I get Victorian Circular Economy Recycling Modernisation Fund?
Follow these steps:
- Check if your organisation and project are eligible
- Attend the online information session (recommended)
- Prepare necessary documentation, including insurance certificates, Fair Jobs Code certificate (if applicable), and quotes
- Register or log in to SmartyGrants
- Submit your completed application by 12 May 2025, 11:59 pm
- Await outcome notification in September 2025 (tentative)
Late applications will only be accepted in exceptional circumstances.
Information to prepare for the Victorian Circular Economy Recycling Modernisation Fund application
Before applying, prepare the following:
- Detailed project plan and timeline
- Proof of financial viability and co-contribution
- Quotes for equipment to be purchased
- Fair Jobs Code Pre-Assessment Certificate (for grants ≥$500,000)
- Recycled content traceability registration
- Written internal budget approvals
- Evidence of project site compliance and regulatory readiness
Applicants are also encouraged to engage with SV’s Investment Facilitation Service by 2 May 2025 for pre-application guidance.
Applying for Victorian Circular Economy Recycling Modernisation Fund
Applications must be submitted online via SmartyGrants. Use of any other method requires written permission from Sustainability Victoria.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Victorian Circular Economy Recycling Modernisation Fund resources
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