Local Capability Fund – Digital Transformation Round (Australia)

Objectives

• 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.

Funding Available

• There are two streams of funding available under this round.
  • Stream 1 – Operational improvements – $5,000 – $25,000 on a matched funding basis (i.e., total project cost would need to be at least $50,000 to receive the full $25,000 grant).
  • Stream 2 – Advanced technology purchase and integration – $5,000 – $50,000 on a matched funding basis (i.e., total project cost would need to be at least $100,000 to receive the full $50,000 grant).

Eligible Activities

• To be eligible, expenditure must:
  • Be incurred by the applicant after application submission.
  • 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 Digital Transformation Round is administered under two streams – operational improvements and Advanced technology purchase and integration.
• It is essential applicants select the appropriate funding stream.
• Stream 1 – Operational improvements:
  • Under this stream, applicants can apply for funding towards digital and data technologies that will improve efficiency, contribute to a more resilient and streamlined business environment and/or strengthen cybersecurity.
  • The digital transformation project must be presented as a single, clearly defined initiative, rather than a collection of general business improvements.
  • This program is designed to support the adoption of technologies that are new to the business. Upgraded technology that is already in operation within the business will only be considered when it is demonstrated that it will significantly enhance the business’s operations.
  • 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:
  • Under this stream, applicants can apply for funding towards the purchase and integration of more advanced technologies that will enhance the business’s deliverables and competitiveness.
  • The type of activity that may be supported should be directly related to the industry in which the business operates.
  • 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.

Ineligible Activities

• Examples of excluded activities under Stream 1 and Stream 2 include:
  • Research and development activities including product certifications, testing, product development costs, prototyping trademarking, etc.
  • Purchase of equipment or technology that is considered standard office technology for the business e.g., laptops, mobile phones, iPads, printers, conferencing equipment, general photographic or video equipment.
  • Replacement or upgrades of existing technology unless substantially different from current technology.
  • Costs of subscriptions that extend beyond 12 months.

Eligibility Criteria

• To be eligible for funding under this round, applicants must:
  • Have an Australian Business Number (ABN).
  • Be financially solvent
  • 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 their 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.

For more information, visit Government of Western Australia.