Manufacturing funding opens as Sustainability Victoria launches $1M recycling grants

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Image supplied by Sustainability Victoria.

Manufacturing businesses in Victoria are being invited to apply for up to $1 million in funding under a new grants round aimed at strengthening recycling and resource recovery, according to Sustainability Victoria.

In a media release, Sustainability Victoria said Round 6 of the Victorian Circular Economy Recycling Modernisation Fund (CERMF) is open to manufacturing businesses seeking support for projects that expand recycling capability and improve the resilience of the state’s resource recovery system.

The program offers grants ranging from $50,000 to $1 million to support the purchase or upgrade of recycling, reprocessing and remanufacturing equipment. 

Eligible projects include those that enable the recovery of materials such as soft plastics, e-waste, tyres, liquid paperboard and textiles.

Sustainability Victoria said the fund is designed to attract new investment, improve the quality of recovered materials and support the development of new or improved recycling and manufacturing solutions.

Chief executive officer Matt Genever said the initiative is intended to support greater circularity in the manufacturing sector. 

“By investing in new or improved recycling and manufacturing solutions we can increase circularity, so more materials can be recovered, reused and made into new products locally,” he said.

“Victoria has the technology, talent and drive to lead the nation in circular innovation. This fund is a chance to scale promising ideas, build new infrastructure and create new, circular jobs,” Genever added.

According to Sustainability Victoria, the latest round builds on more than $67 million in joint Australian and Victorian government funding previously awarded to 24 infrastructure projects across the state. 

Past projects have included initiatives targeting hard-to-recycle items such as coat hangers and automotive components, as well as the development of products using fully recycled materials.

The Australian Government is contributing to the program through its $190 million Recycling Modernisation Fund, while the Victorian Government’s share forms part of a broader $515 million investment in the state’s waste and recycling sector.

Applications for the current round close on 1 July 2026 and will be assessed on a rolling basis, with Sustainability Victoria noting that submissions may close earlier if available funding is fully allocated.