“Should we automate?” NSW puts $6 million in grants behind the answer

The NSW Government has opened Stage 1 of its Innovative Manufacturing Adoption Fund (IMAF), with grants of up to $50,000 to fund the discovery work behind your next automation project. Applications close on 6 October 2026, and with $1 million available in Stage 1, it pays to move early.
For many NSW manufacturers, the automation question has been stuck in the too-hard basket. While the technology is proven and the use cases are clear, properly investigating a project takes time and money that operational budgets rarely allow for.

If automation has been on your list but never made it to the top, the IMAF could be the reason to move it up.

What the IMAF offers

The IMAF is a $6 million program delivered in two stages. Manufacturers match the grant dollar for dollar.

  • Stage 1: open now Provides grants of $10,000 to $50,000 to fund discovery and feasibility work – the investigation needed to assess whether an automation project stacks up. Eligible activities include feasibility studies, business case development, pilot projects, process testing, equipment assessments and certification.
  • Stage 2: opens early 2027 Will provide a further $5 million to help manufacturers implement new technologies and scale their operations.

The fund is open to NSW manufacturers across a broad set of sectors, including construction and building products, clean energy, transport, defence and aerospace, health and medtech, advanced electronics, food and beverage, mining services and agriculture.

Learn more and apply on the NSW Government website.

Dr Paul Wong & the Applied Team on an ADP discussing automation solutions for pre-existing lines onsite

Discovery: where automation projects succeed or fail

Manufacturers often move straight from deciding to automate a process to writing a tender, without the structured investigation that identifies where the real value lies and what the right technology is. That’s when scope gaps creep in and projects can head down expensive paths.

“Getting automation right comes down to robust front-end design and scoping before committing capital. This grant directly funds that groundwork.” – Andrew Hambly, Head of Solutions, Applied Robotics

Whether the question is quality control, throughput, visibility across the floor or optimising existing equipment, the discovery step is the same. It starts with understanding the problem and sizing the opportunity, then building a business case that carries the investment through. Stage 1 of the IMAF is designed to fund that groundwork.

How to get the discovery done

Stage 1 helps pay for you to bring in an expert partner for discovery work such as a feasibility study, business case, pilot project or proof of concept. It won’t fund work you do yourself, and at least 75% of the project budget must go to the external provider.

For example, Applied Robotics’ Automation Discovery Program starts with a feasibility workshop and delivers a full proposal within three weeks, covering what the grant is designed to fund: a clear scope, a costed plan and the business case behind it.

For new or technically complex processes, our Proof of Concept can validate the technology and expected performance before full implementation.

It’s the kind of work we’ve been doing for over 40 years, delivering 700+ automation solutions for domestic and international clients including Arnott’s biscuit lines, Capral’s aluminium extrusion facilities and Legrand’s electrical assembly.

Why now matters

With $1 million available in Stage 1, applications close on 6 October 2026, or earlier if the funding is fully allocated. It’s a competitive program, and your application must include a detailed proposal from an external provider, so the partner conversation needs to happen before you apply.

Stage 2 opens in early 2027 with $5 million for implementation, also awarded competitively. The evidence-based report your Stage 1 project produces is what Stage 2 consideration is built on, so manufacturers who do the discovery work properly will arrive ready to move, with a well-scoped project and the evidence to back it.

NSW Manufacturing Grants Stage 1 & Stage 2 Overview

Part of a national shift

The IMAF is one of a growing number of state and federal programs backing local manufacturing, including the Queensland Manufacturing Grants Program. Governments across the country are investing in the industry’s future to keep jobs and manufacturers thriving in Australia.

For NSW manufacturers, the funding is open now.

“Our vision is to transform Australian industry into a globally competitive manufacturing powerhouse. Programs like the IMAF are the kind of support we need to make that happen.” – Dr Paul Wong, Founder and Technical Director, Applied Robotics

If you’re a NSW manufacturer weighing up a grant-supported project, the best way to start is with a conversation. Contact our expert team to talk about the Automation Discovery Program.

To explore how creative automation solutions can transform your manufacturing capability, contact our expert team for a discussion.

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