Manufacturing and the 2020 – 2021 Federal Budget
3 mins reading time
Employing approximately 860,000 and generating over $100 billion in value annually, the manufacturing industry forms a cornerstone of the Australian economy.
Whilst the industry has felt the full effects of COVID-19, the pandemic has highlighted the critical importance of supply chains and flexible, adaptable and innovative manufacturing.
The 2020-2021 Federal Budget builds upon this, and contains measures designed to stimulate economic growth and jobs. As part of this, and in an effort to create a new era for manufacturing in Australia, the Modern Manufacturing Strategy (the Strategy) has been launched.
the Modern Manufacturing Strategy
With an investment of $1.5 billion over four years, the Strategy aims to encourage and support advanced manufacturing in priority sectors, including resources technology and critical minerals, food and beverage, medical products, recycling and clean energy, defence, and space.
The Strategy includes the following four key initiatives:
- Modern Manufacturing Initiative (MMI): $1.3 billion investment in large transformative projects to encourage private investment and build the scale, connections and capabilities of local manufacturers, allowing them to shift up the value chain and grow.
- Supply Chain Resilience Initiative (SCRI): $107.2 million investment to better understand supply chains, identify gaps and take action to address them.
- Manufacturing Modernisation Fund (round two) (MMF): Following the successful first round of the program, the MMF will receive an additional $52.8 million in funding to address the competitiveness of individual manufacturers in the priority sectors.
- Road maps to recovery and beyond: Facilitation of expert industry-led teams to develop road maps against each of the National Manufacturing Priorities, to identify roadblocks to growth.
what does the strategy aim to do?
The Strategy aims to make Australian manufacturers more competitive, resilient and able to scale up, whilst creating jobs and providing long-term employment opportunities. It is also focused on:
- upskilling workers;
- encouraging private sector investment;
- streamlining regulation and cutting red tape;
- reducing input costs; and
- increasing accessibility to affordable and reliable energy.
is my business eligible?
Eligibility for MMI: Eligible applicants will be confined to trading corporations. There will be no specific business size requirements. Funding will be focused on supporting businesses to scale.
Eligibility for SCRI: From 1 July 2021, businesses may be able to access support to establish or scale a capability that addresses a supply chain vulnerability.
Eligibility for MMF: MMF round two will open before the end of 2020. To be eligible for grants, businesses will need to show:
- expected job growth;
- upskilling of their existing employees; and
- alignment with the National Manufacturing Priorities.
If you have any questions or concerns about how the Budget will benefit your business or how to get the most out of the Budget for your business, please contact us.
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Manufacturing and the 2020 – 2021 Federal Budget
Employing approximately 860,000 and generating over $100 billion in value annually, the manufacturing industry forms a cornerstone of the Australian economy.
Whilst the industry has felt the full effects of COVID-19, the pandemic has highlighted the critical importance of supply chains and flexible, adaptable and innovative manufacturing.
The 2020-2021 Federal Budget builds upon this, and contains measures designed to stimulate economic growth and jobs. As part of this, and in an effort to create a new era for manufacturing in Australia, the Modern Manufacturing Strategy (the Strategy) has been launched.
the Modern Manufacturing Strategy
With an investment of $1.5 billion over four years, the Strategy aims to encourage and support advanced manufacturing in priority sectors, including resources technology and critical minerals, food and beverage, medical products, recycling and clean energy, defence, and space.
The Strategy includes the following four key initiatives:
- Modern Manufacturing Initiative (MMI): $1.3 billion investment in large transformative projects to encourage private investment and build the scale, connections and capabilities of local manufacturers, allowing them to shift up the value chain and grow.
- Supply Chain Resilience Initiative (SCRI): $107.2 million investment to better understand supply chains, identify gaps and take action to address them.
- Manufacturing Modernisation Fund (round two) (MMF): Following the successful first round of the program, the MMF will receive an additional $52.8 million in funding to address the competitiveness of individual manufacturers in the priority sectors.
- Road maps to recovery and beyond: Facilitation of expert industry-led teams to develop road maps against each of the National Manufacturing Priorities, to identify roadblocks to growth.
what does the strategy aim to do?
The Strategy aims to make Australian manufacturers more competitive, resilient and able to scale up, whilst creating jobs and providing long-term employment opportunities. It is also focused on:
- upskilling workers;
- encouraging private sector investment;
- streamlining regulation and cutting red tape;
- reducing input costs; and
- increasing accessibility to affordable and reliable energy.
is my business eligible?
Eligibility for MMI: Eligible applicants will be confined to trading corporations. There will be no specific business size requirements. Funding will be focused on supporting businesses to scale.
Eligibility for SCRI: From 1 July 2021, businesses may be able to access support to establish or scale a capability that addresses a supply chain vulnerability.
Eligibility for MMF: MMF round two will open before the end of 2020. To be eligible for grants, businesses will need to show:
- expected job growth;
- upskilling of their existing employees; and
- alignment with the National Manufacturing Priorities.
If you have any questions or concerns about how the Budget will benefit your business or how to get the most out of the Budget for your business, please contact us.