Local Capability Fund 2025 – 26: Regional Supplier Round (Australia)

Funding Information

• The maximum grant amount under this round is $20,000 per applicant. Applicants are required to co-contribute to the approved activities. The LCF will cover 50 per cent of eligible project costs, excluding GST.
• To receive the full $20,000, applicants must demonstrate eligible costs of at least $40,000 (excluding GST). The Department will not reimburse a grant recipient for GST paid to a third party.

Eligible Expenditure

• To be eligible, expenditure must:
  • Be incurred by you within the project period.
  • Meet the eligible expenditure guidelines below.
  • Be at least $10,000 in total.
• Eligible activities must be implemented in WA and have a clear and direct link to the grant objective. The following activities are eligible for funding:
  • External Expertise:
    • Planning and Business Advice:
      • Strategic and business planning
      • Development and implementation of marketing plans
      • Supply chain facilitation
      • Tender submission advice and preparation
      • Preparation and submission of applications for other government and international grants
    • Improvements to Internal Business Infrastructure / Systems:
      • Production systems
      • Transportation and distribution systems
      • IT and communication systems, including cyber security
      • Operational systems and other activities necessary to meet the pre-qualification requirements of the target market
    • Training:
      • Up-skilling of employees to improve operational processes
      • Training as part of the employer’s staff development requirements
      • Travel and accommodation costs associated with training where local options are not available
      • Costs involved in bringing registered trainers to deliver local group training
  • Plant and Equipment:
    • Acquiring new equipment or machinery
    • Acquiring second-hand equipment or machinery through a dealer
    • Modifying existing equipment or machinery
    • Upgrades or expansions to applicant-owned business operating facilities
    • Purchase of specialised motor vehicles used exclusively for business purposes (e.g., bobcats, forklifts, cherry pickers, back hoes, bucket trucks) Note: Utility vehicles, 4x4s and vans are not considered specialised vehicles
    • Purchase of specialised computer hardware and software (e.g., tender management software; project management software; online sales and marketing systems)
    • Related freight and installation costs on capital expenditure.

Ineligible Expenditure

• Examples of ineligible expenditure include:
  • Works carried out by consultants without the appropriate expertise
  • Works carried out by third parties where the Department determines there is a conflict of interest
  • Support of any legal action
  • Purchase of equipment and machinery second-hand through a private sale
  • Purchase of non-specialised motor vehicles (e.g., utility vehicles, vans, 4x4s)
  • Purchase of general computer hardware, software, and office furniture / equipment upgrades (e.g., Microsoft Office, Windows operating systems, photocopiers), unless vital to the operations of the applicant’s business and used exclusively for business purposes
  • Land and property acquisitions
  • Upgrades or expansions to privately owned residential property or leased / rented property
  • Internal research and development activities
  • Any cost that is considered “business as usual” or operational expenditure (e.g., wages, advertising, office expenses, accounting, legal, purchase of inventory, IT maintenance services, repair and maintenance of existing assets)
• This list is not exhaustive and applies to all expenditure, including both grant-funded and applicant contributed costs.

Regions

• The objective of this round is to provide funding support to Western Australian SMEs in the following regions:
  • Gascoyne
  • Goldfields-Esperance
  • Great Southern
  • Kimberley
  • Mid West
  • Peel
  • Pilbara
  • South West
  • Wheatbelt

Eligibility Criteria

• To be eligible for funding, applicants must:
  • Have their principal place of business in one of the Local Government Areas (LGAs) listed in Schedule 1 of the Regional Development Commission Act 1993 and remain based there for at least 12 months after applying. This must align with the ‘Main business location’ in ABN Lookup.
  • Have been actively operating in that region for at least 12 months before applying.
  • Primarily supply goods or services to businesses or government, rather than relying on walk-in retail trade. However, consideration will be given to businesses whose proposed activities will enable them to shift or expand into broader supply chains.
  • Have been registered for GST for at least 12 months before applying and intend to remain registered for the next 12 months.
  • Be a solvent business at the time of application and throughout the project duration.
  • Have an Australian Business Number (ABN).
  • Be a for-profit business, or an incorporated not-for-profit Aboriginal Corporation operating as a commercial enterprise.
  • Be an SME with fewer than 200 full-time equivalent (FTE) employees at the time of application.

For more information, visit Government of Western Australia.