VIC Circular Economy Recycling Modernisation Fund Round 6

  • The fund focuses on enhancing the capacity, capability, and resilience of Victoria’s resource recovery sector.
  • For Profit Businesses: Funding from $100,000-$500,000. Must co-contribute at least $2 for every $1 in funding.
  • Social Enterprises, NFP organisations and local government organisations: Funding from $50,000-$500,000. Must co-contribute at least $1 for every $1 funded.
  • Applications are open until July 1, 2026.

The VIC Circular Economy Recycling Modernisation Fund provides financial support to businesses, local and state government authorities, social enterprises, and not-for-profit organisations. The fund focuses on building capacity, capability, and resilience within the sector, supporting businesses in complying with national waste export regulations, improving the quality of materials for manufacturing, and creating jobs in the circular economy.

Key Requirements

Projects must achieve at least one of the following objectives:

Projects must achieve at least one of the following primary objectives:

  • improve the quality of recovered target materials to increase market uptake and/or meet market specifications
  • increase the use and market demand of recovered target materials in remanufacturing and to make new products
  • increase the recovery and domestic reprocessing of one of the following target materials and equipment types as outlined in the Eligible Materials and Equipment Table 1 below:
    • hard-to-recycle plastics (Including e-plastics, EPS/PS, packaging (soft / flexible) plastics, agricultural plastics where there are:
      • very low recovery and recycling rates due to difficulties in recycling
      • limited infrastructure and technology solutions to support circularity in the supply chain.
    • e-waste, such as photovoltaic (PV) panels, batteries, vapes or household appliances
    • recovery of tyres to create crumb rubber for local markets (no other tyre recovery projects will be eligible)
    • liquid paperboard / liquid packaging board
    • textiles.

Additional objectives (optional): 

  • improve recycling outcomes by addressing critical infrastructure gaps in Australia’s waste management and resource recovery system including, where possible, addressing Australia’s regional and rural waste challenges
  • manage target materials in line with the waste hierarchy and national regulation of waste exports
  • create jobs in the resource recovery sector
  • increase other economic development opportunities such as economic performance and growth of hubs
  • reduce the amount and environmental impact of waste going to landfill.

What is eligible for funding?

Funding will support projects that:

  • meet one or more of the fund’s primary objectives
  • are aligned with the Recycling Victoria: A new economy policy and, for applicable materials, the Australian Government’s national regulation of waste exports.
  • increase processing capability and capacity or improves the quality of target materials to meet product specifications for products or for re-manufacture or use
  • target one or more of the following materials and equipment types as outlined in the following Eligible Materials and Equipment Table:

Eligible Infrastructure by Material

Hard-to-recycle plastics

  • Bailing and storage: Eligible for agricultural plastics only
  • Sorting: Eligible
  • Primary processing*: Eligible
  • Secondary sorting: Eligible
  • Secondary processing: Eligible

E-waste

  • Bailing and storage: Not eligible
  • Sorting: Eligible
  • Primary processing*: Eligible
  • Secondary sorting: Eligible
  • Secondary processing: Eligible

Tyres

  • Bailing and storage: Not eligible
  • Sorting: Not eligible
  • Primary processing*: Eligible
  • Secondary sorting: Eligible
  • Secondary processing: Eligible

Liquid paperboard / liquid packaging board

  • Bailing and storage: Not eligible
  • Sorting: Eligible
  • Primary processing*: Eligible
  • Secondary sorting: Eligible
  • Secondary processing: Eligible

Textiles

  • Bailing and storage: Not eligible
  • Sorting: Eligible
  • Primary processing*: Eligible
  • Secondary sorting: Eligible
  • Secondary processing: Eligible

Project types: 

  • purchase, install and commission new equipment or upgrades to existing equipment to provide services to external customers.

Project costs: 

  • capital purchases: equipment only (including shipping of the equipment, installation and commissioning).

Projects must:  

    • source 50% or more of the project feedstock (materials) from Victorian sources, exemptions will be considered.
    • meet regulatory and/or planning requirements
    • be located in and service Victoria
    • enter into a funding agreement within 60 days of being notified of a successful outcome.
    • be commissioned and operational by 30 April 2027.

What companies are eligible for funding?

Eligible organisations must be one of the following organisation types: 

  • An Australian business.
  • A social enterprise (must be currently registered with Social Traders or prove accreditation before entering into a funding agreement).
  • A Victorian local government organisation.
  • Other not-for-profit organisation, ideally registered on the ACNC charity register.

Note: If the Applicant is a Trust, the Funding Agreement must be executed by the Trustee of the Trust. For example XYZ Pty Ltd as The Trustee for the XYZ Trust. The Trust as the trading entity must meet all the eligibility requirements of the fund (for example ABN).

Applicants must:  

  • have a current Australian Business Number (ABN). If the applicant is a Trust, the Trust as the trading entity must meet this requirement
  • have been operating for a minimum of 2 years by the application closing date (to be validated by the date that the organisation’s ABN is active from)
  • be able to demonstrate financial viability to undertake the project (will meet or exceed the minimum co-contribution requirements)
  • submit their Fair Jobs Code Pre-Assessment Certificate Number with their application if applying for $500,000 (exclusive of GST). A Certificate must be held prior to applying for the grant.

Is this grant competitive or entitlement based?

Demand Driven – Grants are awarded to eligible applicants in the order applications are received until funding is fully allocated.

How can I increase my chances of winning this grant?

By engaging a specialist government grants consultant, such as Avant Group to assist with eligibility checks and collation of relevant documentation.

As part of your engagement with Avant Group, your account manager will assess the required documentation and provide tailored support to strengthen your grant submission.

How can I get help with my application? 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.