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NSW Innovative Manufacturing Adoption Fund (IMAF) – Stage 1: Discovery and Feasibility

NSW Innovative Manufacturing Adoption Fund (IMAF) – Stage 1: Discovery and Feasibility

  • Funding pool: $1 million total available for Stage 1
  • Grant amount: $10,000 to $50,000 (excluding GST) per project
  • Funding covers 50% of total eligible project costs, matched by a minimum 50% cash co-contribution
  • Eligible project costs are capped at $100,000 (excluding GST); costs above this must be covered by the applicant
  • Applications close: 6 October 2026
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Stage 1 of the Innovative Manufacturing Adoption Fund helps NSW manufacturers assess advanced manufacturing technology before they invest in it. Funding supports businesses to engage external experts for feasibility studies, business cases, pilot projects and testing.

The Fund is a three-year, $6 million NSW Government program. It aims to strengthen manufacturing capability, productivity and competitiveness, create skilled jobs, and help manufacturers win higher-value work through export markets and government procurement.

Stage 2 (Implementation) is expected to open in early 2027 with $5 million to help businesses adopt new technologies and scale their operations. Stage 1 participation isn't required for Stage 2, but the Stage 1 report can form the basis of a Stage 2 business case.

Key Requirements

Business requirements

  • Be an Australian corporation headquartered in NSW with an active ABN
  • Operate a manufacturing facility in NSW under a relevant manufacturing ANZSIC or BIC code
  • Have a minimum turnover of $1 million in each of the two financial years before applying
  • Employ between 10 and 100 full-time equivalent staff
  • Supply, or intend to supply, products or manufacturing services to at least one Target Sector

Target sectors
Construction and building products (including modern methods of construction), clean energy products, transport and rolling stock, defence and aerospace, health and medtech manufacturing, advanced electronics, mining equipment, technology and services (METS), agriculture, and food and beverage manufacturing. Net zero and energy-related manufacturing, such as solar panels and wind turbines, isn’t supported.

Project requirements

  • Investigate adoption of one or more Target Technologies: additive manufacturing, precision machining, electronics and mechatronics manufacturing, advanced materials and processing, robotics and automation, digital manufacturing and Industry 4.0, or advanced quality and inspection systems
  • Be delivered by an external consultant or manufacturing service provider
  • Deliver an evidence-based report that assesses technical feasibility and commercial viability and recommends an adoption pathway
  • Take place within NSW, unless activity outside NSW can be justified
  • Not have started before the application was submitted

Other conditions

  • Only one application per business, including related entities, is accepted at a time
  • Projects already funded, or previously funded, by an Australian government agency for the same or related activities are ineligible

Applicants should read the IMAF Stage 1 program guidelines in full before starting an application.

What is eligible for funding?

Eligible activities include:

  • Feasibility studies and business case development
  • Pilot projects, prototyping and process testing
  • Assessment of new equipment, software or systems
  • Certification and compliance requirements

Eligible costs include external consultant or manufacturing service provider fees for advice and technical services, pilot production runs and samples, and testing of equipment, software and processes. Internal wages needed to deliver the project can make up to 25% of the budget.

What companies are eligible for funding?

NSW-headquartered Australian corporations operating a manufacturing facility in NSW, with 10 to 100 FTE employees and turnover of at least $1 million in each of the past two financial years.

Is this grant competitive or entitlement based?

Competitive. Your application will be assessed among other applications by a judging panel.

How can I increase my chances of winning this grant?

By engaging a professional government grant writer consultant. Avant Group is Australia’s largest independent grants advisory firm. Find out more about our government grant writing and consulting service here. 

How can I get help understanding if I’m eligible for this grant? Or know if I’m likely to win funding?

Avant Group offers a no-obligation assessment of your eligibility for funding and will assess your likelihood of a successful grant application.