Australia’s manufacturers embrace advanced technologies. The Australian Government has powered up support for our manufacturing capability, focusing on high-value sectors.
We offer investors:
- Strong government support for industry innovation and commercialisation. This includes a new A$15 billion National Reconstruction Fund to help Australian industry move up the value chain.
- Strong talent pool of engineers and materials scientists. World-leading expertise in research fields including advanced materials, nanotechnology and 3D printing.
- Abundant natural resources that mean access to locally sourced raw materials. Space available to support manufacturing industries.
- Domestic demand for advanced manufacturing capability in sectors including energy, infrastructure, defence, aerospace, health, and agrifood.
- Access to customers in key export markets. Australia presents a strategic location for distributed/decentralised manufacturing opportunities
- “Made in Australia”: The opportunity to leverage Australia’s reputation for quality, and bespoke and customised products.
In 2022, there was A$118.4 billion foreign direct investment in Australia’s manufacturing sector – up 2.9 per cent from 2021
Source: Australian Bureau of Statistics, May 2023
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Australian manufacturing industry earnings grew $A7.6 billion (17.8%) in 2021-22
Source: Australian Bureau of Statistics, May 2023
Thinking about entering the Australian market?
- Investors typically establish a new company, register as a foreign company or acquire an existing company. Assess your options with our Investor Guide.
- Austrade is Australia’s national investment promotion agency. We attract and facilitate game-changing foreign direct investment into Australia. Our team of business and investment specialists can connect investors to early-stage opportunities in Australia and provide direct and tailored professional assistance. Find out how we can help.
Your future made in Australia
The Australian Government is working to establish a new A$15 billion financing vehicle to support Australia’s manufacturing industry. The National Reconstruction Fund will drive investments into priority areas of the Australian economy focussed on value adding and capability development to leverage Australia’s natural and competitive strengths. The Australian Government has announced target investment levels for several areas, including:
- A$1 billion targeted to advanced manufacturing. This investment will help grow advanced manufacturing and support businesses to innovate and move up the technological ladder.
- A$1.5 billion allocated for medical manufacturing
- A$1 billion allocated for investment for critical technologies. This could include technologies that underpin advanced manufacturing such as AI and robotics.
It will provide a range of financing options including loans, equity investment and guarantees.
“The National Reconstruction Fund will be the greatest investment in manufacturing capabilities in living memory.”
- Minister for Industry and Science Ed Husic
Video: Join Australia’s advanced manufacturing industry
Australia’s innovative culture, abundance of natural resources and generous funding and incentives are among our manufacturing sector’s competitive advantages. Watch to find out why there’s never been a more exciting time to be part of Australia’s thriving advanced manufacturing ecosystem.
Fast facts
- In 2019-20, the manufacturing industry had the second highest business R&D spend of any Australian industry at A$4,763 million. It also recorded the second largest increase in R&D spend, up A$164 million or 4 per cent, from 2017-18 (Australian Bureau of Statistics, 2021).
- Around 905,000 people were employed in the manufacturing sector in March 2023 – representing about one in every 16 Australian workers (Australian Bureau of Statistics, June 2023).
- Industry value added (IVA) for manufacturing increased 15.2 per cent (A$16.1billion) in 2021-22 (Source: Australian Bureau of Statistics, May 2023).
- Gross value added (GVA) of the manufacturing industry grew 2.4 per cent in December 2022 to March 2023 – representing the highest quarterly growth of any sector (Australian Bureau of Statistics, March 2023).
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An estimated 60 per cent of the world's physical inputs could one day be made with biology – and innovative Australian company, Provectus Algae, is leading the charge. Founder & CEO Nusqe Spanton explains why our innovative culture, natural resources and government support makes Australia’s manufacturing industry globally competitive.
Incentives, grants and support
In addition to the National Reconstruction Fund, support available in Australia includes:
- The Advanced Manufacturing Growth Centre (AMGC). A not-for-profit organisation led by a board of industry experts, it funds innovative projects with the potential to make the country’s manufacturing industry more productive and competitive. It has co-funded over 140 industry-led collaborative projects with A$137.2 million committed collectively.
- A National Robotics Strategy under development to boost responsible production and adoption of robotics and automation and support advanced manufacturing.
- The Research and Development Tax Incentive, a tax offset for companies conducting eligible R&D activities.
- The Australian Tax Office’s New Investment Engagement Service, which gives tailored guidance on tax issues to businesses planning significant new investments in Australia.
Additional funding and support is available in specific states and territories around Australia:
- Queensland’s Advanced Manufacturing 10 Year Roadmap and Action Plan outlines the north-eastern state’s plans to grow the sector. Initiatives include:
- the Industry Partnership Program, which will invest A$350 million over four years in priority sectors including advanced manufacturing.
- Made in Queensland (MIQ), a A$101.5 million Queensland Government program helping small and medium sized manufacturers to increase international competitiveness, productivity and innovation via the adoption of new technologies.
- the A$30 million Regional Manufacturing Hubs program.
- In Victoria, a A$2 billion investment fund called the Breakthrough Victoria Fund aims to cement the south-eastern state as a global innovation hub in key industry sectors including advanced manufacturing.
- NSW is developing a new Modern Manufacturing Strategy which will set out a roadmap for the state’s modern manufacturing sector – the country’s largest.
- Tasmania offers a range of grants for businesses in advanced manufacturing.
- The Northern Territory’s Advanced Manufacturing Ecosystem Fund provides grants to industry-led advanced manufacturing projects in the territory.
- Western Australia operates the A$16.7 million New Industries Fund (NIF) to support the acceleration of new and emerging businesses in the state, including Innovation Booster Grants to help start-ups and small businesses to commercialise and expand.
Join our thriving ecosystem
Innovators in advanced manufacturing capabilities will find a supportive environment that can help your business expand.
- Australia is home to five of the world’s top 200 institutions for materials science, according to the Nature Index 2021.
- Strong peer networks link industry, scientists and engineers including the Australian Academy of Science’s National Committee for Materials Science and Engineering and the Australian Materials Research Society.
- Our national science agency CSIRO has vast expertise in materials research, from early development to testing, scaling up and designing manufacturing processes. Its facilities include Lab22 Innovation Centre for Additive Manufacturing, FloWorks Centre for Industrial Flow Chemistry, the Biomedical Materials Translational Facility and the joint Swinburne CSIRO Industry 4.0 Testlab in Composite Additive Manufacturing.
- The Sovereign Manufacturing Automation for Composites Cooperative Research Centre (SoMAC CRC) is a national consortium of leading universities and industry partners with the goal to advanced and transform Australia’s next generation composite manufacturing industry. The SoMAC CRC is a $260m project over 10 years, and open to collaborating and partnering with international players.
- Innovation hubs and research facilities focused on advanced manufacturing and related disciplines such as robotics and automation, precision engineering, nanomaterials and additive manufacturing exist throughout the country.
- NSW: The A$150 million Sydney Nanoscience Hub is a world-class centre for nanoscale research and education. It houses labs and core nanofabrication and characterisation facilities, The Advanced Manufacturing Research Facility is a new collaborative research and manufacturing facility under development in western Sydney. The Sydney Manufacturing Hub is a manufacturing-focussed research facility geared to enable concept-to-production demonstration capabilities, including advanced pre- and post-processing of materials. And the Wagga Wagga Special Activation Precinct is a long-term project with a vision to be a sustainable regional hub for advanced manufacturing, renewables and recycling.
- Victoria: The capital city Melbourne is home to more than 20 cutting-edge advanced manufacturing research centres. The Australian Manufacturing and Materials Precinct (AMMP) is a hub for industry and science organisations to connect and commercialise research. It is home to 40 per cent of Victoria's manufacturing companies, as well as CSIRO, Monash University, the Australian Synchrotron, and the Melbourne Centre for Nanofabrication. The Advanced Manufacturing Precinct at RMIT University makes state-of-the-art research facilities available to industry partners.. The Additive Manufacturing Hub is working to grow capability for Australia’s 3D printing innovators. ManuFutures is a $20 million purpose-built, advanced manufacturing innovation hub within Deakin University in the Victorian regional city of Geelong.
- South Australia: The Australian Government is funding a A$10.1 million expansion of the Factory of the Future near the capital city Adelaide. It will work with more than 200 small-to-medium enterprises to build their technological capabilities and help them gain a foothold in critical supply chains. It’s part of the Tonsley Innovation District, which continues to be Australia’s most awarded innovation district. It is recognised for reimagining traditional manufacturing facilities, and is host to leading automation and simulation companies.
- Queensland: The University of Queensland hosts the Australian Institute for Bioengineering and Nanotechnology. An integrated multi-disciplinary research institute bringing together the skills of world-class researchers, its work includes precision nanomedicine and agriculture nanotechnology. Other research centres linked to universities include Advanced Materials Processing and Manufacturing (AMPAM) at the University of Queensland; Griffith University’s Advanced Design and Prototyping Technologies Institute (ADaPT) and James Cook University Makerspaces. Also in Queensland, the Advanced Robotics for Manufacturing Hub helps Australian manufacturers integrate robotics and AI into their operations. Queensland is also host to the Australian Space Manufacturing Network (ASMN), a collaboration between 30 space companies, universities and supply chain partners, with dedicated manufacturing and testing facilities being established in the state.
- Tasmania: The Manufacturing Centre of Excellence in Burnie is home to facilities, training spaces and equipment designed to develop workers’ and students’ skills in advanced manufacturing. The Tasmanian Advanced Manufacturing Action Plan 2024 sets the strategic framework to grow the state’s sector.
- Western Australia: The Australian Automation and Robotics Precinct (AARP), launched in October 2021, provides companies with a unique testing and development environment. The Global Advanced Industries Hub is a cross government initiative focused on developing the necessary infrastructure, partnerships, and innovation to support industries including minerals processing and shipbuilding and sustainment. And the Australian Marine Complex is a world-class centre of excellence for marine manufacturing, fabrication, assembly, maintenance and technology development.