WA Local Capability Fund – Digital Transformation Round

The Digital Transformation Round of the Local Capability Fund offers grants from $5,000-$50,000, depending on stream
50% co-contribution required
Applications are open until 4 September 2025

The Digital Transformation Round provides financial support for eligible businesses to adopt and use digital and data technology for the purpose of improving their productivity, competitiveness, resilience, safety and sustainability.

Key Requirements

The Digital Transformation Round is specifically designed to encourage eligible businesses to adopt transformational digital and data technologies that will improve their productivity, competitiveness, resilience, safety and/or sustainability.

This is the third Digital Transformation Round and it introduces a second stream of funding, designed to encourage businesses to invest in larger-scale digital transformation projects.

What is eligible for funding?

There are two streams of funding available under this round.

Stream 1 – Operational improvements

Applicants can apply for funding for operational /process improvements that will increase efficiency, strengthen cybersecurity, and contribute to a more resilient and streamlined operating environment.

Eligible applicants can receive up to 50% of eligible costs, for a maximum of $25,000 per successful applicant. Examples include, software purchase and integration, cyber audits and mitigation strategies, automation of business processes.

The following are examples of activities that may align with the objectives of this round.

Costs of consultancy services to audit, implement or to advise the business on digital or data adoption options.
Software purchase and integration such as enterprise resource planning and customer relationship management.
Improvements to business’s cybersecurity, including audits, penetration testing, data backup & recovery planning, secure cloud configuration review, mitigation strategies and cybersecurity awareness training for staff.
Implementation of data analysis tools and platforms, data governance and data management.
Establishment of an e-commerce platform and/or secure payment portals where these do not currently exist.
Integration of technologies to automate business processes, including artificial intelligence products.
Costs of short-term training to address a specific digital capability gap within the business.
Other technology related projects that can be linked to improving a business’s operational efficiency.

Stream 2 – Advanced technology purchase and integration

Applicants can apply for funding towards the purchase of technology that will improve the business’s productivity and competitiveness. This stream is designed to support the purchase of innovative and/or advanced technologies that will increase or improve the business’s deliverables.

Eligible applicants can receive up to 50% of eligible costs, for a maximum of $50,000 per successful applicant. Examples include additive manufacturing software, technologies to support 3D printing; IoT warehousing, predictive maintenance, robotics and automation.

The following are examples of activities that may align with the objectives of this round.

A business in the manufacturing sector may apply for projects aimed at integrating advanced manufacturing technologies to drive efficiency, strengthen sovereign capability, and promote sustainable growth. Specific examples include – additive manufacturing software, technologies to support 3D printing; IoT warehousing, predictive maintenance, and/or monitoring technologies (IoT sensors, smart shelves and bins, drones for inventory scanning, robotics, smart cameras for analytics); automation manufacturing technologies (including, but not limited to, Robotics, MES systems, CNC programming).
An agricultural business applying to adopt drone technology for crop monitoring to enhance precision agriculture by providing real-time data on crop health, soil conditions, and irrigation needs.
A fabrication business may seek funding to purchase automated welding equipment to boost productivity. This investment can lead to faster production times, improved weld consistency and quality, increased safety and reduced material waste.

What companies are eligible for funding?

In order to be eligible companies must:

To be eligible for funding, applicants must meet the following criteria:

Have an Australian Business Number (ABN).
Be registered for GST for at least 12 months prior to application submission and intend to remain registered for the next 12 months.
Have been operating in Western Australia for at least three years at the time of application submission.
Supply goods or services to businesses; or local, state or commonwealth government agencies. Consideration will be given to consumer-focused businesses whose proposed activities demonstrate strong potential to expand into new markets.
Be a for-profit business, or an incorporated not-for-profit Aboriginal Corporation operating as a commercial enterprise.
Have its principal place of business in Western Australia and remain based there for at least 12 months after submitting the application. This must align with the ‘Main business location’ listed in ABN Lookup.
Have a turnover of more than $500,000 in at least one of the previous three financial years.
Have at least one WA based, full-time equivalent (FTE) employee, in addition to the owner, but fewer than 200 FTE total employees at the time of application submission.

Only one LCF application per financial year is permitted (identified by ABN). If multiple applications are received, only the first application submitted will be considered, unless it is withdrawn prior to the round closing.

Previous LCF recipients may apply if:

They have complied with all requirements of prior Financial Assistance Agreements, including submitting all required reports (i.e., no overdue reports).
They have received no more than $200,000 in LCF grant funding over the past five years (excluding funding from the $10 million COVID-19 LCF Rounds in 2020-21).
All previously awarded funding has been claimed.

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 an accredited government grants consultant, such as Avant Group.

Competitive grants often require significant business case development and project analysis to support the application, this may include detailed presentations supporting the project’s merit, projected sales, cost-benefit analysis and more.

As part of your engagement with Avant Group, your account manager will assess the required documents and will provide the following as needed to support your grant submission.

Grant application writeup including a detailed presentation illustrating how the grant funding will contribute to your project, how the funding will contribute to the project’s budget, a project milestone plan, delivery timeline, impact on employment if applicable and a breakdown of the management and leadership team for the project

Industry analysis presentation
Competitor Analysis Presentation
Marketing and Sales Analysis Presentation
3-5 year Cashflow Forecast
3-5 year Balance Sheet Forecast
Cost-Benefit Analysis of Grant Funding
End-to-end grant application including information collating, analysis and application writing
CAPEX (Capital Expenditure) cost-benefit analysis
Stakeholder relations and Risk Mitigation Plans
Any other relevant forecasting that will support your application

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.

This grant is open

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