The Albanese government has cut $102 million in uncommitted funding from its flagship Industry Growth Program, two years after the scheme was launched to help startups and SMEs bridge Australia’s commercialisation gap. The reduction, detailed in the Mid-Year Economic and Fiscal Outlook (MYEFO), is part of a broader $147.6 million reprioritisation across industry, science, and resources programs over the next five years. The savings will be redirected to other government priorities without affecting the overall Budget bottom line.
The Industry Growth Program, introduced in the 2023 Federal Budget with $392.4 million in funding, provides matched grants ranging from $50,000 to $5 million to startups and innovative SMEs operating in priority areas linked to the $15 billion National Reconstruction Fund. Most of the funding was intended for grants, while a quarter was allocated for advisory services, delivery partners, and departmental administration. Under MYEFO, the $102 million cut will mainly impact funding from 2025–26, with the majority occurring in 2027–28, coinciding with the program’s transition to ongoing funding arrangements. The program was designed to combine capital with capability support, drawing lessons from the former Coalition-era Entrepreneurs’ Programme while promising cleaner delivery and stronger alignment with national industrial priorities.
The funding cuts to the Industry Growth Program are part of wider reductions across the industry, science, and resources portfolio. These include $31.3 million over three years from the now-closed Modern Manufacturing Initiative, $12.3 million over five years from the Global Science and Technology Diplomacy Fund, and $73.1 million from the Economic Accelerator program, with most redirected to childcare and education initiatives rather than science or research. Simultaneously, MYEFO provided a $233 million funding boost to the CSIRO over two years to stabilise the agency amid rising operating costs and potential research job losses.
While current Industry Growth Program grants remain unaffected, the reduction in future funding raises concerns for startups and SMEs that rely on co-investment certainty for multi-year commercialisation projects. These changes follow broader shifts in publicly backed innovation programs, including Victoria’s decision to wind down startup support agency LaunchVic, highlighting a period of structural adjustment in Australia’s innovation and commercialisation landscape.
