The federal budget will include a $100 million fund for manufacturers to diversify and expand their businesses, in the wake of the death of Australian car manufacturing.
Primarily, the money is aimed at South Australian and Victorian manufacturing bases, and will be used to boost innovation, according to Industry Minister Arthur Sinodinos. The minister said the initiatives included in the fund, coupled with tax cuts for approximately 3.2 million Australian businesses, will help the manufacturing sector.
The fund will comprise $47.5 million over two years, on top of the existing $155 million Advanced Manufacturing Growth Fund.
- $20 million will go towards larger scale advanced manufacturing research projects under the Cooperative Research Centre.
- There will be $13.5 million worth of tariff reductions on imported vehicle prototypes and components used by Australian motor vehicle design and engineering firms.
- $10 million will be put towards developing innovation labs in South Australia and Victoria.
- $5 million will go towards education at universities and technology institutions.
- $4 million will go to the Advanced Manufacturing Growth Centre to fund smaller scale research projects.