Victorian Circular Economy Recycling Modernisation Fund (Round 5)

Sustainability Victoria (SV) is supporting eligible organisations through Round 5 of the Victorian Circular Economy Recycling Modernisation Fund.

The fund aims to:

• build the capacity, capability and resilience of Victoria’s resource recovery sector
• support Businesses to respond to the national regulation of waste exports
• increase the quality of materials for manufacturing
• create jobs in the circular economy.

Projects will be co-funded through the Victorian government’s circular economy policy, Recycling Victoria: a new economy. Those projects addressing materials impacted by the national regulation of waste exports are additionally co-funded by the Australian Government’s Recycling Modernisation Fund.

Applications must be submitted by 11:59 pm Monday 12 May 2025. Late applications will not be accepted except under exceptional circumstances.

The following are the guidelines for applying for this fund.

Information bulletin

Read questions and answers about this program in the information bulletin.

1. Fund overview

1.1 Fund objectives

Projects must achieve at least one of the following objectives:

• increase the recovery and local reprocessing of hard-to-recycle plastics (including plastics from e-waste and soft plastics)
• increase the capacity for domestic reprocessing and manufacturing of hard-to-recycle plastics affected by the National regulation of waste exports
• improve the quality of recovered hard-to-recycle plastics to increase market uptake and/or meet market specifications
• increase the use and market demand of recovered hard-to-recycle plastics in remanufacturing and to make new products .

Additional objectives:

• improve recycling outcomes by addressing critical infrastructure gaps in Australia’s waste management and resource recovery system including, where possible, addressing Australia's regional and rural waste challenges 
• manage hard-to-recycle plastics in line with the waste hierarchy and national regulation of waste exports
• create jobs in the resource recovery sector 
• increase other economic development opportunities such as economic performance and growth of hubs 
• reduce the amount and environmental impact of waste going to landfill.

The Fund aims to achieve the following outcomes:

• diversify and attract new investment to increase the quality of materials recovered for recycling
• attract reprocessing infrastructure to increase the quantity of materials re-entering manufacturing streams and improving the circularity of materials
• support technologies and processes that provide new or improved recycling and manufacturing solutions.

1.2 Funding available

Grants of between $250,000 and $1,000,000 (ex GST) are available per project, SV reserves the right to negotiate the funding amount. 

1.3 Co-contribution

Applicants must contribute at least $1 for every $1 funded.  
Co-contributions must be for eligible activities (refer to 2.3 What will be funded). Note that In-kind Contributions cannot be included in the Applicant’s co-contribution.
Investment leverage will be a key consideration as part of application assessments. Higher investment from the Applicant will be looked upon more favourably.

2. Eligibility

2.1 Who can apply

Eligible organisations must be one of the following organisation types:

An Australian business.

A social enterprise (must be currently registered with Social Traders or prove accreditation before entering into a funding agreement).

A Victorian local government organisation.

Other not-for-profit organisation, ideally registered on the ACNC charity register.

Note: If the Applicant is a Trust, the Funding Agreement must be executed by the Trustee of the Trust. For example XYZ Pty Ltd as The Trustee for the XYZ Trust. The Trust as the trading entity must meet all the eligibility requirements of the fund (for example ABN).

Applicants must:

• have a current Australian Business Number (ABN). If the applicant is a Trust, the Trust as the trading entity must meet this requirement
• have been operating for a minimum of 2 years by the application closing date (to be validated by the date that the organisation’s ABN is active from)
• be able to demonstrate financial viability to undertake the project (will meet or exceed the minimum co-contribution requirements)
• agree to comply with the Terms of Participation in Grant Programs
• agree to comply with the funding terms and conditions in the General grant funding agreement terms and conditions
• agree to implement recycled content traceability consistent with the National Framework for Recycled Content Traceability and register the use of the national framework with the Department of Climate Change, Energy, the Environment and Water
• submit their Fair Jobs Code Pre-Assessment Certificate Number with their application if applying for $500,000 or more (exclusive of GST). A Certificate must be held prior to applying for the grant.

Applicants who do not agree with the Grant Funding Agreement Terms and Conditions will be asked to provide full details of proposed amendments that would render the contractual provision acceptable to the Applicant in the SmartyGrants application form.  Applicants should note that significant or substantive variations will not be viewed favourably unless the Applicant is able to demonstrate the necessity for such variations. Should applicants be successful, no further amendments to SV’s standard terms and conditions will be considered beyond the variations included in the application form.

2.2 Who cannot apply

Individuals, and unincorporated entities are not eligible for funding.  

Organisations that do not currently operate the facility where the project will be located. 

2.3 What will be funded

Funding will support projects that:

• meet one or more of the fund objectives
• operate at an existing facility that increases processing capability and capacity or improves the quality of hard-to-recycle plastics to meet product specifications for products or for re-manufacture or use
• target hard-to-recycle plastics which are plastics in waste streams where there are:
  • very low recovery and recycling rates due to difficulties in recycling
  • limited infrastructure and technology solutions to support circularity in the supply chain.
• are aligned with the Recycling Victoria: A new economy policy and, for applicable materials, the Australian Government’s national regulation of waste exports.

Project types:

• purchase, install and commission new equipment or upgrades to existing equipment to meet one or more objectives of the fund.

Project costs:

• capital purchases: equipment only (including shipping of this equipment, installation and commissioning) that delivers on the objectives of the fund.

Projects must:

• source 50% or more of the project feedstock (materials) from Victorian sources
• meet regulatory and/or planning requirements
• be located in and service Victoria
• enter into a funding agreement within 60 days of being notified of a successful outcome.
• be commissioned and operational by 30 April 2026.

You can submit multiple applications. Each application must be for a different project. An application must not be for multiple projects. If recommended for funding, only one project per applicant will receive funding.

2.4 What will not be funded

SV will not fund projects that have commenced before the applicant is notified by SV in writing that their grant application has been successful. Note: if applicants fail to execute a Funding Agreement, their eligible costs will not be reimbursed. 

Project activities:

• Projects that:
  • focus on materials not listed in this guideline
  • focus on producing energy from waste solutions
  • seek to use the equipment to solely manage their waste generated from their own operations and do not use the equipment to provide services to external customers (e.g. processing only the waste generated by their own primary business activities)
  • seek to extend capacity for receipt or sorting only of unsorted materials. For example infrastructure for transfer stations or materials recovery facilities
  • require any building construction or civil works as part of the project.

Project types:

• Projects that:
  • do not meet the eligibility criteria of the grants funding
  • do not clearly demonstrate a need for government support
  • are being undertaken solely in order to comply with regulation or a regulatory notice or order
  • have received funding or support for the same activities from other sources
  • do not meet regulatory or planning requirements
  • will not be commissioned and operational by 30 April 2026.
  • are not located at an existing facility.

• Requests for retrospective funding, where projects have commenced before the Applicant is notified by SV in writing that their grant application is successful.
• Note: once notified that the application is successful, project equipment may be ordered or purchased to accommodate shipping and delivery time and prevent delays in completing the project. If Applicants fail to execute a Funding Agreement, their eligible costs will not be reimbursed.

The following costs are ineligible for funding:

• in-kind contributions
• requests for assistance in managing cash flow
• civil works and other site preparation works
• construction of slabs, sheds, buildings or other housing structures
• upgrades to site as part of equipment installation. For example fire management equipment or electrical works (outside of installation of equipment)
• lease or purchase of land
• permit, licensing, or approval costs
• routine or cyclical maintenance works
• security such as fences, cameras, and alarm systems
• repair of facilities damaged by vandalism, fire, or other natural disasters where damage should be covered by insurance
• operating costs (for example staff costs such as salaries, electricity, water and other utilities)
• consultancy or project management costs
• marketing, advertising, or promotional costs
• purchase of vehicles (For example front-end loaders or forklifts)
• business case development, feasibility studies, consultancy or contract work
• pre-construction (site preparation) such as site clearing, earthworks or site accessibility works
• costs of equipment not dedicated to the project purpose (e.g. establishment of an office including the building and fit out)
• research, development and demonstration
• leasing of equipment
• travel, conferences, training and other educational activities
• contingency costs
• fuel costs.

3. Assessment process

3.1 Assessment criteria

The assessment panel will assess the application based on merit according to the criteria below.

How

Weighting: 30%

Describe how the project will be delivered including:

• a sound approach to delivering the project

• how the applicant can meet their co-contribution

• realistic and achievable timeframes for delivery, including any EPA permissions.

• that the project will be completed and commissioned by 30 April 2026.

What

Weighting: 30%

Demonstrate the project meets at least one of the objectives of the fund including:

• increase the recovery and local reprocessing of hard-to-recycle plastics (including plastics from e-waste and soft plastics)
• increase the capacity for domestic reprocessing and manufacturing of hard-to-recycle plastics affected by the National regulation of waste exports
• improve the quality of recovered hard-to-recycle plastics to increase market uptake and/or meet market specifications
• increase the use and market demand of recovered hard-to-recycle plastics in remanufacturing and to make new products .

Additional objectives:

• improve recycling outcomes by addressing critical infrastructure gaps in Australia’s waste management and resource recovery system including, where possible, addressing Australia's regional and rural waste challenges 
• manage hard-to-recycle plastics in line with the waste hierarchy and national regulation of waste exports
• create jobs in the resource recovery sector 
• increase other economic development opportunities such as economic performance and growth of hubs 
• reduce the amount and environmental impact of waste going to landfill.

Applicants must demonstrate:

• that the funding requested is for equipment only, including quote/s for technology with delivery timeframes
• how the project is upgrading or expanding current operations
• market supply of the material feedstocks and demand for the processed products.

Who

Weighting: 20%

Applicants must demonstrate:

• their ability and any Project Partners’ ability to deliver the project including capability (skills) and capacity (resources)
• written internal approval for the project including approved budget and allocation of resources.

Why

Weighting: 20%

Applicants must demonstrate:

• the need for government financial assistance, including any impacts on scope and timing if the project is not funded
• how the project addresses a priority material
• job creation.

3.2 Due diligence checks

A risk-based approach will be used to assess the Applicant’s social, economic, safety and environmental risks in relation to the project. This assessment will include the Applicant’s Related Entities and may include Project Partners and/or Project Participants (see Section 9: Program definitions).

Applicants (and their Related Entities and, if applicable, their Project Partners and/or Project Participants) must:

• have had no Environmental, Safety or Workplace Breaches in the last five years or, if there was a breach, Sustainability Victoria may assess that the Applicant’s breach poses a satisfactory level of risk;
• have not been the subject of an enforceable undertaking or successful litigation by the Fair Work Ombudsman for a breach of the Fair Work Act 2009 or a fair work instrument within the last five years;
• demonstrate financial capability to undertake the project;
• have adequate insurance as outlined in the funding agreement such as:
  • Public liability $20M minimum
  • Professional indemnity $5M minimum (if required)
  • WorkCover
• have not failed to satisfactorily progress or complete previous projects funded by Sustainability Victoria within funding program timelines and without sufficient reason; and
• manage any conflicts of interest adequately.

Assessment of satisfactory level of risk will include but not be limited to Sustainability Victoria’s consideration of:

• the seriousness of any finding/s;
• whether the finding/s has been resolved to the satisfaction of the relevant enforcement agency, or the Applicant can demonstrate it is working effectively to resolve the finding;
• the efforts made by the Applicant including implementation of management systems, to ensure no further finding/s occur; and
• whether, since the finding, the Applicant has had a satisfactory level of compliance with relevant Environmental and Safety Laws and Workplace Laws.

Sustainability Victoria may conduct due diligence checks on the Project Partners and/or Project Participants involved in the delivery of the project. The Applicant must ensure that any Project Partners and/or Project Participants agree to cooperate with this requirement and will provide information at Sustainability Victoria’s request.

Sustainability Victoria reserves the right not to award funding to Applicants where the due diligence risk (including that of Project Partners and Project Participants) is unsatisfactory or not able to be managed.

4. Funding conditions

Successful applicants approved for funding must do the following. 

4.1 Before starting the project 

• SV will not enter into a funding agreement if the applicant does not have the required EPA approvals for the project.
• Participate in an inception meeting to discuss their project and the funding agreement.
• Agree to realistic evidence-based and performance-based milestone payments.
• Provide Sustainability Victoria with insurance certificates of currency.
• Sign Sustainability Victoria’s funding agreement within 30 days of receipt via DocuSign.
• Provide a project plan.
• If you receive funding of more than $250,000, plan for capital works signage.
• If your project is in regional Victoria, and is given funding of at least $1 million, you need to meet Local Jobs First requirements.

4.2 During and after the project 

• Deliver the project as outlined in the application and comply with the funding agreement. 
• Contribute to regular project progress updates or meetings.
• Notify Sustainability Victoria immediately about any delay or change to the project. 
• Provide update reports to Sustainability Victoria at agreed milestones with evidence of expenditure, progress and performance 
• Provide adequate monitoring and evaluation of the project according to the funding agreement.  
• Collect and release data to Sustainability Victoria. Sustainability Victoria may share or report on the data. 
• Contribute to the project’s promotional activities (for example, provide Sustainability Victoria with support by reviewing and approving written stories or videos). 
• Participate in and contribute to Sustainability Victoria activities to distribute the findings to broader stakeholders (for example, government and industry). 
• Acknowledge that Sustainability Victoria and the Australian Government through the RMF has contributed funding in all communications related to the project. 

5. Timeline

Dates may change.

There is no date for the announcement of application outcomes. We will provide applicants with updates as much as possible and when necessary.

Applications open: 10 April 2025

Information session: 10 April 2025

Applications close: 11.59 pm 12 May 2025

Notification of outcome: September 2025 to be confirmed

Funding agreements established: October 2025 to be confirmed

Projects commenced by: October 2025 to be confirmed

Projects completed by: 30 April 2026

6. How to apply

Before applying, we recommend you view the information session.

The grant program involves a competitive, merit-based application process.

1. Ensure that your organisation can apply.
2. Ensure that your project is qualified.
3. Read Sustainability Victoria’s General grant funding agreement.
4. Read Sustainability Victoria’s Terms of participation in grant programs.
5. Create an account and start your application on the SmartyGrants website.
6. Submit your application by 11:59 pm, 12 May 2025. Late applications will not be accepted except under exceptional circumstances.

Your application

• Allow adequate time to plan, research, gather supporting documentation and draft your application.
• As this is a competitive grant, we cannot review drafts or provide feedback.
• You must use SmartyGrants, unless you have written permission from Sustainability Victoria.

7. Assistance available

7.1 Contact us

View the information session for details on the fund, help to get you started, how to complete the application form and guidance on addressing the assessment criteria.

Any question/s specifically related to eligibility for this program please email: grants.enquiries@sustainability.vic.gov.au

In the subject line, use the grant name, Victorian Circular Economy Recycling Modernisation Fund.

The Grants Team cannot review drafts or provide feedback, please see section 7.2 below if you require assistance with your application.

7.2 Investment facilitation

We recommend Applicants to engage with Sustainability Victoria’s investment support service before submitting their application to ensure their project is investment ready and set up for success. Sustainability Victoria offers an investment facilitation service for projects that increase Victoria’s resource recovery sector.

This service is available up to 2 May 2025 to allow time for review and any changes to your application.

Read about our free Application Review and Advisory Service.

Investment facilitation support services is separate and removed from the panel evaluation scoring process.

Use of this service does not guarantee any level of success with any application.

8. Why the Victorian Government is providing this funding

In 2020, the Council of Australian Governments (COAG) agreed Australia should establish a timetable to ban the export of waste plastic, mixed paper and cardboard, glass (regional only) and tyres, while building Australia’s capacity to generate high value recycled commodities and associated demand.

Victorian Circular Economy Recycling Modernisation Fund provides joint Australian and Victorian government funding for recycling infrastructure will build the capacity, capability and resilience of Victoria’s resource recovery system, support businesses to respond to the national export ban on waste materials, increase the quality of materials for manufacturing and create jobs in the circular economy.

The Australian Government is contributing up to $250 million funding as part of its Recycling Modernisation Fund. The RMF is accelerating Australia’s circular economy so that when a product is no longer useful or required for its initial purpose, it is either reused, recycled or remanufactured. Victorian Government funding for this fund is released as part of the Victorian Government’s circular economy policy, Recycling Victoria: a new economy and its $380 million commitment, which will fundamentally boost jobs and establish a recycling system Victorians can rely on.

Applications will be assessed in consultation with the Australian Government.

9. Definitions

Applicant

The applicant who applies for the funding and is responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Sustainability Victoria if successful for grant funding. Applicants must be legally constituted organisations and with a current ABN that has been active for a minimum of 2 years by the application closing date.

The funding that Sustainability Victoria will grant to successful applicants is public money which SV must ensure is expended prudently, accountably and to achieve maximum impact. By requiring businesses to have been in operation for a minimum of 2 years, governments can reduce the risk of investing in businesses that may not have fully established their business model or market demand. This requirement also ensures that the business will have two years of financial returns which can be reviewed to assess whether the business is financially viable and able to acquit the project for which it seeks funding, thereby maximising the sustainability impacts of the funding.

Business
A commercial enterprise seeking to generate profit through its activities, including Social Enterprises.

Charity
A Charity is an organisation that is not-for-profit and has only charitable purposes that are for the public benefit. A Charity must not be an individual, political party or government entity, and must be registered on the Australian Charities and Not-for-profits Commission Charity Register.

Co-contribution

The Applicant’s required cash or in-kind contribution to the total project income. Co-contributions must be for eligible activities.

Collaborative Partnership

A relationship established between a Lead Applicant and Project Partner/s for the purposes of meeting common project objectives and outcomes. Collaborative Partnerships need to be demonstrated by a formal agreement between the partners that outlines the governance, financial and intellectual property arrangements and roles and responsibilities of each party. A formal agreement must either be in place or be finalised before commencement of the project.

Community Group

Any organisation engaged in charitable or other community-based activity operating under Australian law and not established for the purpose of making a profit. This definition can include not-for-profit entities pursuing a range of ‘for-profit’ commercial activities. It can also include organisations engaged in advocacy or other activities that may not be primarily charitable in nature. Unincorporated entities are ineligible to apply.

Construction Jobs

The number of construction jobs created directly by the project during the building/construction phase.

Direct Jobs

Actual new full-time positions created by your business. This can include training or upskilling of employees who would otherwise be made redundant through the implementation of your project.

Environmental, Safety or Workplace Breach

An environmental or safety breach is any past or current prosecution, reportable incident, investigation, notice, penalty, warning, regulatory intervention or enforcement action from the Environment Protection Authority (EPA), Victorian WorkCover Authority (WorkSafe) or Fair Work or failure to comply with any environmental, safety and workplace laws.

Environmental and Safety Laws

Environmental and safety laws are the Occupational Health and Safety Act 2004, Environment Protection Act 2017 or any other legislation, regulation, order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the protection and safety of persons or property or which regulate the environment including laws relating to land use planning, pollution of air or water, soil or groundwater contamination, chemicals, waste, the use, handling, storage or transport of dangerous goods or substances, greenhouse gas emissions, carbon trading, or any other aspect of protection of the environment.

Full-Time Equivalent Employees (FTE)

The hours worked by one employee on a full-time basis.

Calculating FTE

The calculation is used to convert the hours worked by several part-time employees into the hours worked by full-time employees. For example, you have three employees working the following - 40, 40 and 20 hours per week, giving you 100 hours per week in total.

Assuming full-time hours are 40 hours per week, your full-time equivalent calculation is 100 hours divided by 40 hours which equals 2.5 FTE.

Indirect Jobs

Jobs created by other businesses that come into existence due to the economic growth of your business.

In-kind Contribution

An in-kind contribution is a contribution of a good or a service other than cash.

In-kind contributions should include the cost for activities that are directly related to delivering your project. Examples include:

• staff time to manage project implementation (project management and installation costs that utilise existing internal resources);
• time spent on project activities by volunteers; and
• donated goods or services related to the project.

The following activities cannot be considered as in-kind contributions:

• operating expenses that are not directly associated with delivering the project; and
• opportunity costs such as staff ‘downtime’ during the installation of equipment or implementation of activities.

Applicants must fairly justify how they determined the dollar value for in-kind contributions.

Lead Applicant

The listed applicant for the purposes of a Collaborative Partnership. The Lead Applicant will be responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Sustainability Victoria if successful for grant funding. The Lead Applicant is also responsible for managing the project outcomes and deliverables of the Collaborative Partnership.

Not-for-profit

A not-for-profit (NFP) organisation is an entity that does not operate for the profit or gain (either direct or indirect) of particular people. Unincorporated entities are ineligible to apply.

Project Participant/s

An organisation engaged by the Applicant to assist in the delivery of the Applicant’s project, including but not limited to major subcontractors, contractors, product suppliers and consultants.

Project Partner/s

An organisation/s in a Collaborative Partnership with a Lead Applicant that have a critical role in the project and a formal commitment to delivering the support required to ensure the project’s success.

Related Entities

Entities which are related to the Applicant, including:

• Holding companies of the Applicant
• Subsidiaries of the Applicant
• Subsidiaries of holding companies of the Applicant
• Companies with common directors or shareholders as the Applicant
• Companies that are a beneficiary under a trust of which the Applicant is a trustee
• Trustees of a trust under which the Applicant is a beneficiary
• Companies that conduct business at the same address as the Applicant, or the same address as the location of the activity for which the funding is sought.

Social Enterprise

A social enterprise is a business that trades to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment.

Social enterprises:

• are driven by a public or community cause, be it social, environmental, cultural or economic
• derive most of their income from trade, not donations or grants
• use the majority (at least 50%) of their profits to work towards their social mission.

Related Person/s

Related Person means a director, officer, employee, agent, board member or contractor of the Applicant or a Related Entity.

Workplace Laws

Workplace laws are the Fair Work Act 2009, or any other legislation, regulation order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the provision of fair, relevant and enforceable minimum terms and conditions for all persons and to prevent discrimination against employees.