Photo: Kangaroo Island- WanderPods.
In a bid to invigorate South Australia’s economy, the State Government has opened the first round of the $122 million Economic Recovery Fund (ERF), a funding initiative aimed at strengthening the state’s manufacturing and regional tourism sectors.
This round of the ERF will make $20 million accessible for co-investment with successful businesses and organisations in the form of grants or concessional loans.
To be deemed successful, businesses must validate that their projects will produce broader economic advantages, such as consistent job creation, workforce upskilling, productivity enhancement, and the introduction of novel products, services, or technologies.
Manufacturing stands as the state’s largest sector. With more than 6,700 businesses, it contributes to an impressive 17% of SA’s yearly output. It also accounts for a quarter of business research and development and a fifth of exports. The ERF emphasises Manufacturing Innovation, where applicants are required to present:
- Existing advanced manufacturing know-how, capabilities, and potential for advanced manufacturing through the proposed project.
- Competitive neutrality, ensuring the project will not adversely affect other SA-based advanced manufacturers.
- Noteworthy innovation and distinctiveness of the project, especially if it’s a first for South Australia.
Regional tourism infrastructure development is another cornerstone of the ERF. Tourism is a major growth sector in South Australia, employing around 40,000 residents. The industry is currently valued at a record $9.9 billion and is on track to reach $12.8 billion by 2030.
The ERF’s Regional Tourism funding will bolster infrastructure in 11 key areas:
- 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
Eligible projects under this funding stream can include new accommodation builds, infrastructure to amplify visitor engagement like cellar doors, and necessary infrastructure for novel tour offerings that capitalise on existing products and experiences.
The ERF is also set to augment the government’s existing Major Events Fund and Tourism Industry Development Fund. Highlight events such as LIV Golf, AFL Gather Round, and the Adelaide 500 will benefit from this additional backing.
Treasurer Stephen Mullighan says 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,” he says.
Future targeted rounds are in the pipeline, which will be designed to bolster business growth, job creation, productivity enhancements, and technological and product innovation in South Australia. Details on future ERF rounds will be revealed as they are launched.
The ERF was established in the 2022-23 Budget and is now being rolled out in response to the tempering of national and global economic conditions.
The State Government will allocate the remaining $5 million of the $10 million Manufacturing Innovation Grants Program from the ERF. $4 million has already been allocated to the Flinders University Factory of the Future project, with $1 million assisting Belgravia Apparel in expanding its manufacturing operations.
The State Government is also releasing South Australia’s Advanced Manufacturing Strategy, a 10-year blueprint which aims to leverage South Australia’s competitive strengths to foster opportunities in defense, transition to a sustainable industrial future, and elevate innovation and skilled job prospects.
The application window for this initial round is open until 15th December 2023. For those interested in the comprehensive guidelines for Round 1 and additional details on the ERF, visit the Department of Treasury and Finance’s official website.
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