The Malinauskas Government is investing in businesses located in South Australia to help them grow.
The first round of the $122 million Economic Recovery Fund (ERF) opens today, with a focus on Manufacturing Innovation and Regional Tourism Infrastructure Development.
A total of $20 million will be available to co-invest with successful businesses and organisations in the form of grants or concessional loans.
Successful businesses will need to demonstrate the project will have a wider economic benefit, such as creating ongoing jobs, upskilling an existing workforce, improved productivity, access to new markets or the introduction of new products, services and technologies.
Manufacturing Innovation applicants must also show:
*Current advanced manufacturing knowledge, capabilities, processes and business models or the potential to become an advanced manufacturer with the proposed project;
*Competitive neutrality – that is, the project will not be to the economic detriment of another South Australian based advanced manufacturer; and
*A level of innovation and uniqueness of the project, for example being new to South Australia.
Manufacturing is the state's largest sector, with more than 6,700 businesses contributing an estimated 17 per cent of SA's annual output, 25 per cent of business research and development and 20 per cent of exports.
The Regional Tourism funding stream is dedicated to eligible infrastructure projects, examples include:
*New accommodation or expansion builds;
*Infrastructure to enhance visitor engagement, including cellar doors; and
*Infrastructure required to develop a new tour offering utilising existing products and experiences.
The 11 regions are:
*Adelaide Hills
*Barossa
*Clare Valley
*Eyre Peninsula
*Fleurieu Peninsula
*Flinders Ranges and Outback
*Kangaroo Island
*Limestone Coast
*Murray River, Lakes and Coorong
*Riverland
*Yorke Peninsula
Tourism is a key growth sector in South Australia. The tourism industry employs around 40,000 South Australians. The sector is worth a record $9.9 billion to the State and is well on track to hit its 2030 target of $12.8 billion.
The ERF is in addition to the government's Major Events Fund and Tourism Industry Development Fund, and major drawcards such as LIV Golf, AFL Gather Round and the Adelaide 500.
This is the first of several targeted rounds specifically calibrated to assist business and industry grow jobs, improve productivity and introduce innovative technologies, products or services in South Australia. The focus of future ERF rounds will be announced as they are opened.
The ERF was established in the 2022-23 Budget. It's being deployed now to ensure the government is supporting businesses to grow as national and global economic conditions soften.
With the establishment of the new grants program the State Government will allocate the remaining $5 million of the $10 million Manufacturing Innovation Grants Program from the ERF. The other $5 million of the Manufacturing Innovation Grants Program saw $4 million allocated towards Flinders University Factory of the Future project and $1 million for Belgravia Apparel to expand its manufacturing operations.
Applications for the first round close on 15 December 2023. Further information on the ERF, including guidelines for Round 1, can be found at the Department of Treasury and Finance website (www.treasury.sa.gov.au).
Coinciding with the first round of the ERF, the Malinauskas Government will today release the South Australia's Advanced Manufacturing Strategy – the state's plan to drive greater economic productivity and complexity by exporting higher value-added goods and services.
The 10-year strategy aims to harness South Australia's competitive advantages to support multi-generational opportunities in defence, the state's transition to a low-carbon industrial future, and to increase innovation and skilled jobs.
As put by Stephen Mullighan
The Economic Recovery Fund will help local businesses and organisations to grow, diversify and transform.
It means more jobs and a stronger economy.
With national and international challenges upon us, now is the time to support our own.
An advanced manufacturing sector is vital for a smart, sustainable and inclusive future, while investing in our regions will only strengthen our visitor economy.
As put by Dr Susan Close
The Advanced Manufacturing Strategy responds to a rapidly shifting global dynamic where decarbonisation, geopolitical uncertainty, new technologies and disrupted supply chains will continue to present challenges and opportunities.
South Australia's international leadership in renewable energy and investment in hydrogen production, together with increased global commitments to the 2015 Paris Agreement, create new manufacturing opportunities for premium low-carbon products like green metals, minerals, and fuels that capitalise on the global green transition.
An increase in manufacturing activity will mean more South Australians in skilled, secure, well-paid work.
