If you run a manufacturing business in Queensland and you have been putting off buying new equipment or upgrading your systems because of the cost, this grant is worth a close look. The Transforming Queensland Manufacturing Grants Program (TQMGP) is a Queensland Government fund set up to help local manufacturers invest in modern equipment and technology, and Round 2 is now open with $12.5 million available.
This guide walks through what the grant is, how much money is on offer, who can apply, who cannot, what you can spend the money on, key dates, what to prepare, and what to do if this program is not quite the right fit for your business.
What Is the Transforming Queensland Manufacturing Grants Program
The TQMGP is a Queensland Government funding program designed to help Queensland based manufacturing businesses buy advanced equipment and technology. The program’s overall aim is to lift manufacturing productivity and competitiveness across the state, encourage businesses to bring manufacturing work back to Queensland that is currently done interstate or overseas (known as reshoring or onshoring), open up new export opportunities, and support the creation of skilled manufacturing jobs.
The program runs across six competitive rounds, with a new round opening roughly every six months. Round 2 opened in September 2026 and is the current round accepting applications. In total, the Queensland Government has committed $79.1 million to this program over three years, delivered in stages through the six funding rounds rather than all at once.
Grants under this program are matched funding, which means the government will cover part of your project cost and your business needs to fund the rest. This is different to some grant programs that cover 100 percent of a project, so it is worth budgeting for your own contribution from the start.
How Much Funding Is Available
For Round 2, the Queensland Government has allocated $12.5 million in total grant funding. Individual grants range from $100,000 up to $1,500,000 per successful applicant.
There is an important funding cap to understand: the grant amount cannot exceed 50 percent of your total eligible project costs. In practical terms, if your project costs $400,000, the most you could receive from this grant is $200,000, and your business would need to fund the remaining $200,000 from its own resources or other means (as long as that other funding is not itself another government grant or scheme covering the same costs).
Half of the available Round 2 funding pool has previously been earmarked for regional Queensland businesses (that is, businesses located outside the South East Queensland region, which covers Brisbane, Gold Coast, Ipswich, Logan, Sunshine Coast, Moreton Bay and Redlands). This means manufacturers based in regional Queensland may find themselves competing against a smaller pool of regional applicants, which can work in their favour.
Payments are staged rather than paid in a single lump sum. Successful applicants may receive an upfront payment of 20 percent of the grant once the funding agreement is signed, with the remaining funds paid as the project reaches agreed milestones. The department also retains 5 percent of the grant for 12 months after the project is completed, as a standard accountability measure.
There is also a lifetime cap across all six rounds of the program: a business, or a group of related businesses under one structure, cannot receive more than $1.5 million in total TQMGP funding across every round it applies to. If your business has already received TQMGP funding close to this cap, you may not be eligible for a further Round 2 grant.
Who Qualifies for This Grant
Based on the program’s official guidelines, an eligible applicant generally needs to meet the following criteria:
Your business needs to employ between 5 and 200 full time equivalent (FTE) staff, either on its own or as part of a wider business structure that falls within that range. The majority of your business’s turnover needs to come from manufacturing activity, specifically manufacturing as defined under Division C of the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006. This is a fairly broad category covering most forms of physical product manufacturing, from food and beverages through to machinery, metal products, textiles, chemicals and more.
Your business needs an active manufacturing presence in Queensland at the time you apply, with a minimum of five full time equivalent employees based in Queensland. You also need to have been operating in Queensland for at least three consecutive years before you submit your application, so genuinely new start up manufacturers are unlikely to qualify for this particular round.
Your project needs a physical site in Queensland, and you need to be registered for GST with an active Australian Business Number (ABN). You will also need to demonstrate that your business has the financial capacity to actually deliver the project you are proposing, and neither your business nor its owners or directors can be insolvent or an undischarged bankrupt.
The equipment or technology you are applying to fund needs to have genuine advanced manufacturing features, described in the guidelines as Industry 4.0 or Industry 5.0 capability, and your manufacturing business needs to be the entity that will actually own that equipment once it is purchased (rather than, for example, leasing it or buying it on behalf of a related company that will use it).
Finally, you cannot already be delivering a project under an earlier TQMGP round at the same time, and as noted above, your business (or business group) cannot have already received more than $1.5 million in total TQMGP funding.
Who Does NOT Qualify
A number of applicant types are specifically excluded from this program. You are not eligible to apply if your organisation is a federal, state or local government entity, a statutory authority, a special purpose vehicle, a charity, a partnership, or a not for profit organisation. This program is squarely aimed at commercial manufacturing businesses, not government bodies or the community and charitable sector.
You are also not eligible if your proposed project is already being funded, or is subject to funding, under any other local, state or federal government grant or scheme. Queensland manufacturers who do not meet the 5 to 200 FTE employee range, who have not operated in Queensland for at least three years, or whose turnover is not primarily from manufacturing activity as defined above, are also unlikely to qualify.
If your project is really about general business operations rather than your manufacturing process specifically, this is also likely to fall outside scope. The guidelines are clear that funded technology needs to demonstrate a genuine link to your manufacturing process, not simply to your business more broadly.
What the Funding Can Be Used For
This program funds the purchase of advanced manufacturing equipment and related technology. Based on the official guidelines, eligible spending generally includes:
Advanced robotics, automation equipment, and Industry 4.0 or 5.0 equipment more broadly. This can include simulation or digital twin technology, robotics or cobotics (collaborative robots designed to work alongside people), autonomous equipment, and augmented or virtual reality equipment used in a manufacturing context.
Software and digital systems that support your manufacturing operations, including enterprise resource planning (ERP) systems, material requirements planning (MRP) systems, and manufacturing execution systems (MES). Big data tools, artificial intelligence systems used in your manufacturing process, digital connectivity and Internet of Things (IoT) technology, digital twin technology, carbon monitoring systems, and sustainability management software can also be eligible.
Sector relevant technology that supports system integration, and artificial intelligence systems specifically applied to your manufacturing processes, are also within scope.
A number of supporting costs can also be included, though generally in a limited way. Freight and electrical upgrade costs that are specifically required for the new manufacturing equipment can be included, but only up to 10 percent of the equipment funding amount. Servers needed to run the new advanced systems, software licensing for up to 12 months (where that software is required to operate the new equipment), training that supports the implementation of a new software system, and cybersecurity costs can also be eligible.
What the Funding Cannot Be Used For
The guidelines set out a fairly long list of ineligible expenditure, and it is worth checking your planned project against this list before you apply.
You cannot use the grant to pay consultants or contractors that are associated entities of your business, and you cannot use it where your business or an associated entity is also the supplier of the equipment or service being purchased. General strategy or advice services are not eligible, and neither are modifications or extensions to existing infrastructure, or construction of new infrastructure, including wiring, cabling or building extensions.
General on the job training and supervision, training courses and training programs (outside the specific software implementation training mentioned above) are not eligible, and nor is travel and accommodation for your staff. You cannot claim any project costs that were incurred or paid before your grant agreement is formally signed, so it is important not to purchase equipment early in anticipation of a successful application.
Leased or hire purchased equipment is not eligible, and neither is equipment you intend to lease or sell on to a third party. Repair, maintenance, or like for like replacement of your existing equipment does not qualify, research and development activities are excluded, and legal advice and intellectual property costs of any kind are not eligible. Non fixed equipment, funding for project contingencies or cost overruns, vehicle repair, maintenance, purchasing or leasing, and staff salaries or other human resources related costs are also all excluded from this grant.
Key Dates and Deadlines
Round 2 of the Transforming Queensland Manufacturing Grants Program opened in September 2026. Applications close on 25 November 2026 at 1pm, and the guidelines are explicit that late applications will not be accepted under any circumstances, so it is worth building in extra time before that deadline rather than leaving your application to the last minute.
After applications close, the assessment period typically runs for around 16 weeks. If you are successful, you will generally have 10 business days to accept the funding offer once it is made, and the department aims to finalise grant agreements within three months of the results being announced. Given these timeframes, businesses applying in Round 2 should not expect a funding decision until well into 2027.
The guidelines also note that project delivery within 12 months of the grant agreement being signed is preferred. If your project genuinely needs longer than that, you can still apply, but you will need to provide detailed reasons for the extended timeframe as part of your application.
Documents You May Need to Prepare
Because this is a matched funding, equipment focused grant, the documentation requirements are more detailed than some grant programs. You will generally need a valid quote from the supplier of the equipment or service you want to purchase. That quote needs to clearly show what is being purchased, who it has been provided to, and the price excluding GST, and it should ideally be dated within six months of the application closing date.
You will also need financial documentation to support your application and demonstrate your business’s capacity to fund its share of the project. This can include bank statements or remittance advices showing project related expenditure, invoices from your suppliers, and other evidence of your financial standing.
Beyond the equipment quote and financial documents, you will need to complete the online application form in full, formally accept the program’s terms and conditions, and if your application is successful, provide one form of security, either a bank guarantee or a Personal Property Security Register (PPSR) registration, before your grant agreement is finalised.
Applications for this program are submitted through the SmartyGrants online portal used for this program, which is the standard way the Queensland Government manages applications and assessment for many of its grant programs.
How Competitive Is This Grant Likely to Be
With $12.5 million available in Round 2 and individual grants ranging up to $1.5 million, this round could realistically fund somewhere between roughly eight and well over one hundred businesses, depending heavily on how many applicants request funding at the higher or lower ends of that range. Because half the funding pool is set aside for regional Queensland applicants, manufacturers based outside South East Queensland may find themselves in a somewhat less crowded field than those competing for the metro Brisbane share.
Applications are assessed competitively against five weighted criteria, so simply meeting the eligibility rules does not guarantee funding. The heaviest weighted criteria (25 percent each) relate to how well your project builds your business’s capability, capacity, productivity and profitability, and how well it supports export opportunities or reshoring or onshoring of manufacturing work into Queensland. A further 20 percent is allocated to how well the project supports and creates manufacturing jobs, and another 20 percent to how well your project planning aligns with your business’s strategic direction. The final 10 percent looks at value for money to the local industry and the state. Applications are also separately checked for financial probity and your ability to fund the portion of costs the grant does not cover, although this check is not part of the competitive scoring itself.
Given this structure, businesses that can clearly demonstrate export potential, onshoring of work previously done overseas or interstate, and a genuine boost to manufacturing jobs are likely to be more competitive than those applying for equipment upgrades with a more limited productivity or job creation story.
What to Prepare Before You Apply
Before you start your application, it is worth working through a short checklist. Confirm your business genuinely meets every eligibility criterion above, particularly the employee count, the three year Queensland operating history, and the ANZSIC manufacturing classification, since these are foundational requirements rather than scoring criteria.
Identify the specific piece of equipment or technology you want to fund and obtain a formal, dated quote from the supplier that meets the program’s documentation requirements. Work out your total project budget and confirm how you will fund your share of the costs, remembering that the grant can cover no more than 50 percent of eligible project costs.
Think through how your project supports the assessment criteria, particularly around productivity, competitiveness, export potential, reshoring or onshoring, and job creation, since a strong written case against these criteria is likely to matter more than simply having an eligible project. Gather your financial documentation early, and set aside enough time to complete the application well ahead of the 25 November 2026, 1pm deadline, since late applications are not accepted.
If you are unsure whether your particular equipment purchase or business structure genuinely fits within the program’s rules, take the time to read through the official guidelines carefully before you invest time in a full application.
Related Funding Options for Queensland Manufacturers
If the Transforming Queensland Manufacturing Grants Program is not the right fit for your business right now, whether because you do not yet meet the three year operating history requirement, your project does not fit the equipment focused funding model, or you simply want to compare your options, Grants Assist covers a number of other programs that may be relevant.
You can read more about funding options specifically for manufacturers on our Tasmanian manufacturing grants guide, which covers a different state program but is useful background if you operate across multiple states or want to compare how manufacturing grants are typically structured. If your business is in the food and beverage manufacturing space specifically, our guide to funding for food manufacturing businesses may be a closer fit than a general advanced manufacturing equipment grant.
For a broader look at what else is available to Queensland businesses more generally, our guide to equipment and services grants for Queensland businesses rounds up other programs that help cover the cost of business equipment. If your business is earlier stage or working on a broader innovation project rather than a specific piece of manufacturing equipment, our innovation grants guide is worth a look as well.
Frequently Asked Questions
Is the Transforming Queensland Manufacturing Grants Program open right now?
Yes. Round 2 opened in September 2026 and applications close on 25 November 2026 at 1pm. The program runs across six rounds in total, so if you miss Round 2, a future round may open roughly six months later, though the Queensland Government has not yet published details of Round 3.
How much can my business receive?
Individual grants range from $100,000 to $1,500,000, and the grant cannot cover more than 50 percent of your total eligible project costs. Your business needs to fund the remaining share.
Does my business need to be a certain size to apply?
Yes. Your business needs to have between 5 and 200 full time equivalent employees, with a minimum of 5 of those roles based in Queensland, and you need to have operated in Queensland for at least three consecutive years before applying.
Can not for profit organisations or government agencies apply?
No. This program is only open to commercial manufacturing businesses. Not for profit organisations, charities, partnerships, and government entities of any level are specifically excluded from applying.
What kind of equipment does this grant fund?
The program funds advanced manufacturing equipment and technology, generally described as Industry 4.0 or 5.0 capability. This includes robotics, automation equipment, artificial intelligence systems used in manufacturing, digital twin and simulation technology, and related software systems such as ERP, MRP and MES platforms, along with some closely related support costs like servers, software licensing and cybersecurity.
Can I use this grant to cover staff wages or general business costs?
No. Staff salaries, human resources costs, general business strategy advice, research and development activities, and day to day operating costs are all excluded from this program. The funding is specifically for eligible manufacturing equipment and technology purchases.
Keep Exploring Your Funding Options
Want to keep exploring your options? Grants Assist’s online portal gives you access to detailed, regularly updated information on grants and assistance programs across Australia. Explore the Grants Assist portal to browse more programs like this one, or call us on 1300-005-999 to speak with one of our advisors.
