The Federal Budget 2020 sees the Morrison Government investing $1.5 billion in new funding over five years from 2020-21 to support the Modern Manufacturing Strategy. This strategy is an integral part of the Government’s $74 billion JobMaker Plan to tackle rising unemployment with sustainable long-term jobs.
Its aim is to “make Australian manufacturers more competitive, resilient and able to take on the world”.
The strategy has identified six areas of competitive advantage and strategic interest:
- Resources technology and critical minerals processing
- Food and beverages
- Medical products
- Recycling and clean energy
- Defence
- Space
Manufacturing partner, Rob Jackson commented that “the six industry sectors are vital to Australia, but all sectors must be looked after. The nature of innovation is that nobody can ever predict what the next new product is, or where the next new market is.”
The funding includes:
- $1.3 billion over five years from 2020-21 to establish the Modern Manufacturing Initiative (the headline initiative) which will support manufacturing projects focused on building long-term business collaboration at scale, translating research into commercial outcomes and bringing new products to market, and integrating local firms to deliver products and services into global value chains. This is the largest component of the new funding.
- $107.2 million over four years from 2020-21 to identify and address critical supply chain vulnerabilities by providing manufacturers support through the new Supply Chain Resilience Initiative.
- $52.8 million over three years from 2020-21 for a second round of the Manufacturing Modernisation Fund, which co-funds capital investments that help manufacturers scale-up, invest in new technologies, create and maintain jobs, and upskill their workers.
- There will also be an additional investment of $30million from 2020-21 over two years for the Advanced Manufacturing Growth Centre (AMGC). The AMGC will be able to continue to support projects, in consultation with other Industry Growth Centres, to build the capability and competitiveness of the manufacturing sector in alignment with the National Manufacturing Priorities.
- In 2021-22 there will be a further $20 million to Industry Growth Centres, including the AMGC, Food Innovation Australia, METS Ignited and MTPConnect. Funding of initiatives within these centres will need to align with the National Manufacturing Priorities.
As always, our Manufacturing team are here to support you with any questions you may have.
Sources
1. Federal Budget 2020-21 materials – Budget Paper No.2 2020-21
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