Local Capability Fund: Digital Transformation Round

Local Capability Fund: Digital Transformation Round is sponsored by Western Australian Government. Provides matched funding to small and medium enterprises in Western Australia for digital and data technologies that improve productivity, competitiveness, resilience, safety, and sustainability.

Local Capability Fund: Digital Transformation Round English Afrikaans Albanian Amharic Arabic Armenian Azerbaijani Basque Belarusian Bengali Bosnian Bulgarian Catalan Chichewa Chinese (Simplified) Chinese (Traditional) Corsican Croatian Czech Danish Dutch Esperanto Estonian Ewe Filipino Finnish French Frisian Galician Georgian German Greek Guarani Gujarati Haitian Creole Hausa Hawaiian Hebrew Hindi Hungarian Icelandic Igbo Indonesian Irish Italian Japanese Javanese Kannada Kazakh Khmer Kinyarwanda Korean Krio Kurdish (Kurmanji) Kurdish (Soranî) Kyrgyz Lao Latvian Lingala Lithuanian Luganda Macedonian Malagasy Malay Malayalam Maltese Maori Marathi Mongolian Nepali Norwegian Odia (Oriya) Oromo Pashto Persian Polish Portuguese Punjabi Quechua Romanian Russian Scots Gaelic Serbian Sesotho Shona Sindhi Sinhala Slovak Slovenian Somali Spanish Sundanese Swahili Swedish Tajik Tamil Tatar Telugu Thai Tigrinya Turkish Turkmen Uyghur Ukrainian Urdu Uzbek Vietnamese Welsh Xhosa Yiddish Yoruba Zulu Local Capability Fund: Digital Transformation Round Support for eligible businesses to enhance their operations through digital and data technology.

Last updated: 30 March 2026 The Local Capability Fund is currently under review. The Digital Transformation Round provides financial support for eligible businesses to adopt and use digital and data technology for the purpose of improving their productivity, competitiveness, resilience, safety and sustainability. There are two streams of funding available under this round.

Stream 1 – Operational improvements Applicants can apply for funding for operational /process improvements that will increase efficiency, strengthen cybersecurity, and contribute to a more resilient and streamlined operating environment. Eligible applicants can receive up to 50% of eligible costs, for a maximum of $25,000 per successful applicant.

Examples include, software purchase and integration, cyber audits and mitigation strategies, automation of business processes. Stream 2 – Advanced technology purchase and integration Businesses considering applying under this stream are strongly encouraged to email digital. industries@deed.

wa. gov.au to confirm alignment with the stream, prior to applying. Applicants can apply for funding towards the purchase of technology that will improve the business’s productivity and competitiveness.

This stream is designed to support the purchase of innovative and/or advanced technologies that will increase or improve the business’s deliverables. Eligible applicants can receive up to 50% of eligible costs, for a maximum of $50,000 per successful applicant. Examples include additive manufacturing software, technologies to support 3D printing; IoT warehousing, predictive maintenance, robotics and automation.

To find out more, read the information below. To be eligible for funding, applicants must meet the following criteria: Have an Australian Business Number (ABN). Be registered for GST for at least 12 months prior to application submission and intend to remain registered for the next 12 months.

Have been operating in Western Australia for at least three years at the time of application submission. Supply goods or services to businesses; or local, state or commonwealth government agencies. Consideration will be given to consumer-focused businesses whose proposed activities demonstrate strong potential to expand into new markets.

Be a for-profit business, or an incorporated not-for-profit Aboriginal Corporation operating as a commercial enterprise. Have its principal place of business in Western Australia and remain based there for at least 12 months after submitting the application. This must align with the ‘Main business location’ listed in ABN Lookup.

Have a turnover of more than $500,000 in at least one of the previous three financial years. Have at least one WA based, full-time equivalent (FTE) employee, in addition to the owner, but fewer than 200 FTE total employees at the time of application submission. See the Guidelines for a complete list of business and project eligibility requirements.

Eligible applicants must submit their application online via the SmartyGrants portal. A preview of the application form detailing the information required is available through the portal. Before applying, applicants must read and understand the guidelines below and the Financial Assistance Agreement found on the portal.

Applications are assessed by an independent Assessment Panel, comprising officers from the Department of Energy and Economic Diversification (DEED) and external experts as required.

Applications are evaluated against their eligibility, relevance to the round objectives and the following criteria: Evaluation Criteria Weighting Business need 30% Solution suitability and implementation readiness 20% Potential for digital transformation and impact 30% Value for money 10% Financial viability and risk 10% A satisfactory response across all criteria is required for a successful application.

Start Early: Leave enough time to collect quotes and prepare evidence. Double-Check: Ask someone else to review your application for clarity and completeness. Be Concise: Include enough detail to support your case, but don’t overwhelm the panel.

Highlight Strengths: Make it easy for the panel to understand your value proposition. Check Eligibility: Make sure your business and activities meet all eligibility criteria before applying. Submit Required Documents Only: Extra attachments will not be considered Review AI generated content : Make sure the content is relevant to your situation.

Using AI-generated content may result in similarities across various applications, which may weaken your competitive edge. Additionally, AI-generated material may contain inaccuracies or misrepresent the unique aspects of your business or project LCF - Digital Transformation Round Guidelines - 2025-26 (PDF, 335. 9KB) LCF - Digital Transformation Round FAQs - 2025-26 (PDF, 164.

59KB) Regional Business Engagement Forums Department of Energy and Economic Diversification Local Capability Fund: Guidelines Collection Facebook share (Opens in a new tab/window) X (Opens in a new tab/window) LinkedIn (Opens in a new tab/window) Have a question or want to report a problem? Fill in the form to get assistance or tell us about a problem with this information or service.

Acknowledgement of Country The Government of Western Australia acknowledges the traditional custodians throughout Western Australia and their continuing connection to the land, waters and community. We pay our respects to all members of the Aboriginal communities and their cultures; and to Elders both past and present.