As part of our JobMaker plan, the Morrison Government is launching a new era of Australian manufacturing to rebuild the economy, create jobs and recover from the COVID-19 recession.
The Government is investing $1.5 billion in new funding, over the next four years in the Modern Manufacturing Strategy to make Australian manufacturers more competitive, resilient and able to scale-up to take on the world.
The centerpiece of the Strategy is the $1.3 billion Modern Manufacturing Initiative (MMI), which will see the Government strategically invest in projects that help manufacturers to scale up and create jobs.
The MMI will support projects within six National Manufacturing Priorities which reflect Australia’s established competitive advantages or emerging areas of priority:
- Resources technology and critical minerals processing;
- Food and beverage;
- Medical products;
- Recycling and clean energy;
- Defence; and
Industry will be engaged to co-design tailored road maps for each of the priority sectors to set clear goals over the next two, five and 10 years, and identify the barriers and opportunities that will guide action and investment.
The Strategy will also address the competitiveness of individual manufacturers in our priority sectors, with a $52.8 million expansion of the Manufacturing Modernisation Fund.
The COVID-19 crisis has also highlighted the need to better understand and address our supply chain issues and opportunities. A $107.2 million Supply Chain Resilience Initiative will support projects that address an identified supply chain vulnerability.
Innovation and Science Australia will be repurposed as Industry Innovation and Science Australia, to provide a long-term perspective on growing the manufacturing sector and strong industry advice to Government throughout the implementation of the Strategy.
The Government is also comprehensively reviewing existing industry programs to better align them with the strategy. As part of this, we will provide an additional $50 million to the Industry Growth Centres initiative to support projects in the priority areas out until the end of June 2022.
This strategy builds on the work across Government to improve economic conditions for business, including streamlining regulation, cutting red tape and cutting input costs. A key part of that will be cutting energy costs as outlined in the Gas-fired recovery statement on 15 September 2020.