NSW Sustainable Communities Program Business and Industry Round

NSW Sustainable Communities Program Business and Industry Round is sponsored by NSW Government. This program invests in projects that improve business and industry sustainability, retain and create jobs, and provide lasting economic growth for local communities in NSW.

NSW Sustainable Communities Program Business and Industry Round | NSW Government NSW Sustainable Communities Program Business and Industry Round The $50 million NSW Sustainable Communities Program Business and Industry Round will invest in projects that improve business and industry sustainability, retain and create jobs and provide lasting economic growth for local communities.

Grant amount: From $100,000 to $5,000,000 NSW Sustainable Communities Program The $160 million NSW Sustainable Communities Program (NSW SCP) is providing support for regional NSW communities, businesses and industries to help minimise the social and economic impacts of water recovery under the Murray-Darling Basin (Basin) Plan.

The NSW Sustainable Communities Program aims to strengthen NSW Basin communities by creating and supporting jobs, encouraging innovation, productivity and diversification, and delivering critical infrastructure that helps people to live and work locally.

The Business and Industry Round builds on earlier investment rounds as part of a coordinated approach to support economic development and deliver long‑term social and economic benefits in impacted NSW Basin communities. The $16.

3 million Early Investment Round provided initial stimulus to support investment in exposed and vulnerable communities, followed by the $69 million Economic Development and Infrastructure Round, which delivered investment in critical infrastructure to unlock industrial development and activate economic opportunities. This Round represents the next phase of this approach.

Program purpose and objectives The $50 million NSW Sustainable Communities Program Business and Industry Round (the Program) will invest in projects that improve business and industry sustainability, retain and create local jobs and provide long-lasting benefits and economic growth for local communities and economies.

This round is focused on real and positive outcomes by delivering opportunities that encourage business and industry growth, support workforce participation and enable economic development in NSW Basin communities exposed and vulnerable to the impacts of the Australian Government’s Voluntary Water Purchase Program for the 450 GL.

The objective of the Program is to support businesses, industry and jobs now and into the future in exposed and vulnerable NSW southern Basin communities.

This includes opportunities that: Sustain and strengthen local businesses, including retaining jobs and creating new employment opportunities and improving workforce participation Increase local economic activity through innovation, skills development, productivity improvements, business growth, job creation, asset activation and local business opportunities Support existing businesses and industry to value-add or diversify their product offerings Enable the development of new and emerging industries and associated businesses and employment opportunities.

Frequently Asked Questions are available to support applicants. A live online information webinar was held on the 25 June 2026, and a recording is available to view: NSW Sustainable Communities Program Business and Industry Round Information Webinar. This program is administered by Department of Primary Industries and Regional Development.

The intended recipients of grants under the program are business and industry, local councils, joint organisations of councils / regional organisations of councils, Aboriginal organisations including Local Aboriginal Land Councils, universities and not-for-profit entities The selection criteria comprise of eligibility criteria and merit assessment criteria.

Project proposals that are assessed as eligible will progress to merit-based assessment. This section details who can apply for this grant and what it can be used for. Eligible locations have been identified based on exposure and vulnerability to adverse socio-economic impacts to the Australian Government’s voluntary water purchasing program.

Projects must be located within one of the following NSW Basin Local Government Areas (LGAs): a company incorporated in Australia a legally binding partnership or trust a registered training organisation an incorporated association, public/private not-for-profit organisation or co-operative an Australian University or nationally accredited provider of tertiary education an Aboriginal and Torres Strait Islander Corporation incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) a Local Aboriginal Land Council (LALC) an eligible Local Government organisation (per the eligible LGAs below) a NSW Joint Organisation of Councils and/or Regional Organisations of Councils.

To be eligible for grant funding, an applicant must meet all the following requirements: demonstrate that the project will be delivered within one of the eligible LGAs be one of the eligible applicant types must hold an Australian Business Number (ABN), Australian Company Number (ACN) or be registered under the Associations Incorporations Act 2009, o r another act (e.g. the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth)) be financially viable and able to demonstrate ongoing viability through provision of accounting statements (profit and loss, cash flow, balance sheet) from financial years 2023-2024 and 2024-2025 hold or commit to obtaining public liability insurance of not less than $20 million per occurrence or hold equivalent or better self-insurance to the satisfaction of the department, prior to executing a funding deed with the department be a fit and proper person/legal entity not be insolvent, bankrupt or subject to ongoing legal proceedings declare in the application form that the applicant is not aware of any issues which could cause reputational or other risks to the NSW Government have previous project delivery experience provide evidence of capacity to make the minimum co-contribution if successful.

If an applicant’s circumstances in relation to the above eligibility criteria change, the applicant should provide updated information by contacting the department using the details within the Support and contact section.

Location that are eligible include Balranald, Berrigan, Carrathool, Edward River, Federation, Griffith, Hay, Leeton, Murray River, Murrumbidgee, Narrandera, Wentworth Types of projects funded under this grant Applications must meet all the following requirements to be eligible: the project must be able to meet the stipulated project delivery timeframe requirements the project must not result in a substantive increase in irrigated water use over the life of the investment, (for example: require acquisition of a water licence for farming purposes or establishment / expansion of irrigated agriculture productive capacity that requires additional water to be purchased).

The department may apply discretion where a project can demonstrate broad enduring industry benefit (e.g. consumptive water use required to undertake a drought resilient research & development project). the project must not only benefit private individuals or businesses without also generating broader economic benefits evidence of land ownership or consent and access agreement for the project must be provided as part of the application.

If the applicant is not the owner of the land where the project will be located, landowner’s consent and access agreements will be required as part of the application. a NSW Treasury compliant Short-Form Assessment will be required for projects with a Total Project Cost exceeding $10 million or a Business Case where the Total Project Cost exceeds $20 million.

Applicants should refer to current NSW Government Business Case Guidelines ( TPG24-29 ) and contact the department if required using the details in the Support and contact section. applications must identify all necessary approvals, advise the status, demonstrate that the approvals can be obtained within 6 months of being notified and that they have been factored into the overall project delivery timeframes.

When the project can start and end Projects must commence within 6 months of the commencement date of the funding deed and be completed by 31 May 2029. (These timeframes are subject to the terms and conditions of an executed funding deed) The project must be completed by 31 May 2029. What costs you can apply for The project costs must support the objectives of the Program.

Eligible project costs include those associated with the delivery of Eligible Projects.

Costs may include: Up to 10% of costs from the grant funding requested towards project management and project assurance support, including employment of project managers either directly or through outsourcing to an external organisation Up to 25% of costs from the grant funding requested towards project contingency to allow for any cost escalation Applicants will be assessed as ineligible if they cannot provide sufficient evidence to meet the requirements of the eligible applicant criteria.

The following will be considered as ineligible applicants for funding: unincorporated associations businesses that are insolvent NSW Government agencies, state-owned corporations or statutory authorities. The provision of financial assistance to businesses may require consideration of the impact on local competition.

Competition issues will be reviewed as part of the assessment process to avoid advantaging or disadvantaging businesses legitimately competing in the same immediate market.

What costs you can't apply for The following project costs are ineligible for funding: costs associated with the purchase of, or improvement to, irrigation infrastructure, assets or equipment costs associated with the acquisition of irrigation water, including purchase of water or water entitlements (except in instances where the department applies discretion, for example where broad enduring region-wide benefit can be demonstrated) costs related to buying or upgrading non–fixed equipment, supplies or vehicles such as cars, trucks and vans, unless considered essential to the overall project delivery and are incidental costs to the project budget.

For example, incidental non‑fixed equipment, such as laptops or computers required for services or program delivery, may be funded where the item’s useful life aligns with the project duration and the full cost can be depreciated within the project period financing, including debt financing and insurance costs relating to depreciation of plant and equipment beyond the life of the project advertising costs, including marketing campaigns, unless directly linked to project delivery purchase of land or buildings funding for any ongoing staff or operational costs that are not directly related to the project or beyond the duration of the project costs that would be considered business-as-usual activities and operations (including costs associated with regular maintenance and repairs, recruiting employees, staff development and training) costs associated with early project planning and future planning, (i.e. business case development, economic/financial or feasibility analysis, strategies or plans) ongoing or recurrent funding that is required beyond the stated timeframe of the project retrospective project costs already incurred prior to the executed funding agreement it has more than 50% of the funding request allocated to ineligible project costs costs already funded by insurance or other State or Australian Government programs project management and administration costs that exceed 10 per cent of the total funding requested; and/or project contingency costs that exceed 25 per cent of the total funding requested.

The following are indicative examples and not an exhaustive list.

Business productivity and enhancement that supports job creation and/or retention Expansion of existing or development of new facilities that contribute to an increase in capability and productivity Introduction of new technologies, innovations, plant and equipment, systems and processes to improve business growth Purchase and integration of more advanced technologies that will enhance the business’s deliverables and competitiveness Project that results in increased access to existing and new export markets Business and Industry Diversification Transition new products or processes from pilot/prototype stage to full commercial operations Value-add of local product, including initiatives such as a processing and packing facility Industry specific program to improve business capability and sustainability Program to assist businesses reach new domestic and international markets Program to enhance local business resilience and ability to adapt to changing market conditions Social enterprise to drive inclusive economic growth and build community resilience Program to assist in overcoming workforce and skills shortages in eligible Basin communities Projects to revitalise or repurpose assets to enhance usage and increase local economic activity Activation of culturally significant assets led by Aboriginal businesses and organisations Innovation (including Research & Development*) Research project with a focus on sustainability, water efficiency, and innovation that has the potential to lead to tangible benefits for growers and producers ineligible LGAs Innovation Hub that delivers expert support to new and established business to grow new products and services from the region and to capture business opportunities emerging through renewable energy projects, agricultural production and circular economy *Projects must not duplicate or substitute for other Research & Development programs such as Commonwealth Research and Development Corporations (RDCs) .

What co-contributions are required Grant recipients must provide a cash co-contribution as follows: Aboriginal and Torres Strait Islander Corporations: Nil, but strongly encouraged Local Government organisations, Universities and Not-for-profit entities: A minimum of 25% of the total project cost Businesses and all other applicants: A minimum of 50% of the total project cost Evidence of the co-contribution and applicant entity type must be provided at the time of application In-kind contributions may be included in addition to the minimum financial contribution, however they cannot be provided in place of or as part of the required financial contribution.

Co-contributions may include funding from other grant sources including other secured State or Australian Government grants. Applicants must provide information on the value of the grant, name of the grant and deliverables funded by the other grant. Grants not secured should not be relied on as co-contribution.

Where a project has received funding from the NSW, other State or Australian Government and any part of the project scope duplicates deliverables to be funded by this program, the project will be assessed as ineligible (see Ineligible projects). Requests for an exemption from the mandatory co-contribution requirement may be considered only in exceptional circumstances.

Applicants wishing to claim an exemption must provide details of their request at the time of application. Requests for consideration or approval of exceptional circumstances prior to application submission and commencement of the assessment phase commencing will not be considered.

What your application needs to include Prepare your application with this checklist Each application must include the documents listed in the Application Form including: a clear project scope and description of activities a detailed project budget based on recent quotes a detailed project management plan information on key personnel involved in project delivery a detailed risk management plan All applications must provide evidence of: co-contribution (if required) landowner consent if the land is not owned by the Applicant (if required) evidence of regulatory approvals have been /or can be obtained without delaying the project completion timeframe (if required) evidence of valid public liability insurance evidence of financial viability evidence of local need for the project entity specific evidence (where applicable): partnership deed/agreement to confirm partners and signatories for partnership entities current Trust Deed confirming signatories for trust entities proof of incorporation and/or not for profit status NSW Government compliant Short-Form Assessment for projects with a Total Project Cost exceeding $10 million or; For projects with a total project cost greater than $20 million a full Business Case consistent with the NSW Government Business Case Guidelines ( TPG24-29 ).

False and misleading information Applicants must not include false or misleading information in their applications. If an application contains false or misleading information, the department may deal with the application as the Department determines in the circumstances and may, for example, determine that the application is ineligible.

After submitting application Applicants will receive a notification of receipt through SmartyGrants upon submitting an application. The department may contact applicants to verify information or seek further information. Address the eligibility criteria Each applicant, as part of an application response, must confirm that they meet the eligibility criteria.

Applicants that do not address the eligibility criteria in full may be excluded from the application process at the department's discretion. Address the assessment criteria Merit Assessment Criteria Applications that have met the eligibility criteria will be assessed against the merit assessment criteria. Each criteria is weighted and this weighting is used to calculate a score for the outcome of the merit-based assessment.

This outcome is used to compare an application with other applications. The below lists the merit assessment criteria, the supporting evidence required and the weighting of the criteria.

Strategic alignment - 10% Degree of alignment of the project to the objectives of the Program Alignment of the project with local, regional and NSW strategic priorities and plans (such as under the Regional Drought Resilience Planning Program), including supporting existing regional development plans and aligning with Aboriginal priorities Alignment of the project with Australian Government’s Regional Investment Framework and the National Agreement on Closing the Gap , including the NSW specific Priority Reform 5.

The ability of the project to deliver measurable economic benefits in the LGA, e.g. job retention and creation developing more skilled workforces and broadening opportunities for workforce participation strengthening domestic economic capabilities including through stronger local supply chains enhancing economic diversification and / or resilience The inclusion of local procurement approaches (if applicable) e.g. from within the eligible 12 LGAs Deliverability, Feasibility and Affordability - 30% Comprehensive project proposal or business case including the following: project budget with recent quotes, and/or detailed cost estimates demonstration of project management experience and capacity all appropriate approvals are in place such as development applications, landowners’ consent and environmental approvals, or confirmation that they can be secured within 6 months of being notified of the outcome (e.g. evidence may include advice from relevant council on DA status).

Accessibility and inclusivity are considered in the project design and scope (where applicable) Extent to which the project responds to unmet local and/or regional demand Demonstrable current and ongoing support from within the LGA Intended benefits and outcomes of the project including demonstrating how the public benefits of the project will contribute to offsetting the local or regional socio-economic impacts of water purchasing The program is a single stage application process.

Applicants may submit more than one application, however, will be asked to rank projects in order of priority. Each application must consist of one project to be delivered in at least one eligible location. Applicants must submit their application via to SmartyGrants via the below Apply now button.

Applicants are encouraged to read these Guidelines and Application Form in full before starting their application. Applicants must submit their applications by the closing date and time outlined in these program guidelines. The department retains discretion to extend the closing date and time, and to accept late applications in extenuating circumstances.

Applicants cannot reopen or amend applications after the closing date and time. After the application is submitted Successful applications will be decided by: Minister for Regional NSW Determining which applications are successful involves these stages: Applicants are not guaranteed funding even if the application is of high merit. Further, successful applications may not be funded to the full amount requested.

At any stage, applicants may be referred to other, more suitable NSW Government programs. Applicants may need to update their applications to meet the criteria of the referred program. The department may seek advice from other NSW Government agencies and other sources such as subject matter experts and/or technical advisors during the assessment process.

Confidentiality will be maintained throughout the process. The department may contact applicants seeking clarification or further information. The selection criteria comprises of eligibility criteria and merit assessment criteria.

Project proposals that are assessed as eligible will progress to merit-based assessment The department will assess each application against the eligibility criteria. Applications deemed ineligible will not be considered for further assessment. The department will undertake an initial merit-based assessment for applications that have been determined as eligible.

The department may seek additional information to assist in the merit-based assessment process. The department will notify applicants if additional information and supporting material is required and the timeframes in which it is required. Other subject matter experts and/or technical advisors may be consulted to assist in the assessment of projects (if required).

Confidentiality will be maintained throughout the process. The department will provide the eligibility and merit-based assessment outcomes to the assessment panel for consideration. Assessment Panel and Recommendation An Assessment Panel will be convened to consider and determine the assessment outcomes for each application.

The Assessment Panel will consider the relative merits of each application against the: outcomes of the Eligibility Assessment outcomes of the Merit Assessment The Assessment Panel will also consider any personal, businesses and/or probity issues and risks that could cause reputational or other risk to the NSW Government.

The Assessment Panel may request further details from applicants during this step to clarify information provided in their application. The department will notify applicants if additional information and supporting material is required and the timeframes in which it is required. Determining project funding suitability The Assessment Panel will form a list of projects that are deemed suitable/not suitable for funding consideration.

In determining funding suitability, the Assessment Panel may: recommend partial funding for projects where there is insufficient funding available for the whole project or where only a component of the project is considered eligible or suitable for funding. Partial funding will only be granted if the project can be completed within the identified funding amount or where the project can be staged.

recommend specific funding condition(s), where appropriate (such as engaging a third-party to manage the project delivery).

take other factors into consideration when recommending an application for funding, including but not limited to the: total amount of funding available level of impact of the projects on the relevant local community importance of the project to the local economy or local community level of impact of the projects on businesses legitimately competing in the same immediate market geographical distribution of projects across the eligible LGAs distribution of funding across different project types possibility of duplication or substitution of Research & Development programs, projects or initiatives being undertaken by a NSW or Australian Government entity, and other factors that are deemed relevant and important in a whole of NSW context.

Advice may also be sought from other NSW Government agencies or other sources (such as probity advisors). Following completion of the assessment process, the department will provide the assessment outcomes and recommendations of the assessment panel to Minister for Regional NSW (the decision maker) for final funding decisions. The decision maker is the Minister for Regional NSW as listed in the Key information .

The decision maker will review the availability of grant funds, the assessment outcomes and the recommendations of the assessment panel. The decision maker may take other factors into account including but not limited to advice from a probity advisor and issues that could cause reputational or other risks to the NSW Government.

In limited circumstances, the decision maker may waive selection criteria, for example, where not doing so would: lead to perverse or unfair outcomes; be contrary to the policy intent; or damage the reputation and integrity of the program. If the decision maker departs from the Assessment Panel’s recommendations, the decision maker will arrange for the departures to be published with reasons.

The decision maker’s decision is final in all matters, including: the approval to award a grant the terms and conditions of the grant. An independent probity advisor will provide guidance on issues concerning integrity, fairness and accountability that may arise throughout the submission, assessment and decision processes.

This will help ensure decisions are made with integrity, fairness and accountability, while delivering value for money for NSW. A probity advisor will be present at all assessment panel meetings. Notification of application outcome The department will send successful applicants a letter of conditional offer.

Successful applicants may be required to sign confidentiality undertakings, promising to keep the outcome of the application process confidential until the NSW Government makes a public announcement. Successful applicants will be required to sign funding deeds with the department. The department will notify unsuccessful applicants in writing of the outcome of their applications.

The department will offer unsuccessful applicants a feedback information session. There is no appeal mechanism from the decision-maker’s decisions. The NSW Government may announce the outcome of funding applications at its discretion.

Key information about the grants awarded will be published on the NSW Government Grants and Funding Finder, in accordance with the requirements of the Grants Administration Guide.

This information, plus information submitted in applications and related correspondence, maybe open access information under the Government Information (Public Access) Act 2009 (NSW) which must be made publicly available unless there is an overriding public interest against disclosure of the information. Information that is commercially sensitive may be withheld.

The NSW Government may use information submitted in applications and in funding deeds for promotional material and to develop case studies. Successful grant applications Successful applicants must execute a funding deed with the department within 60 days of receiving a Letter of Offer.

There is no commitment to provide funding until both the applicant and the department have executed a funding deed (and the applicant has met any other funding conditions). Importantly, this means that successful applicants must not make financial commitments for the funded activities until both the applicant and the department have executed a funding deed. A sample funding deed can be found here.

The department has discretion to amend and update this sample funding deed. The department will tailor the template funding deed for each project to include the grant instalment amounts, activities, deliverables, timeframes and any special conditions.

To enter a funding deed, successful applicants will be required to confirm project information and provide a copy of all relevant and applicable insurances, project approvals (for example, development approvals, landowner’s consent) and/or other supporting documentation relevant to the project or as requested by the department, as part of the contracting process.

If a Development Application is not in place within 6 months of notification the department may at its discretion terminate the funding deed and all funding will be forfeited.

The funding deed will set out the grant recipient’s obligations including, for example, to: meet activity timeframes and deliver the project on time notify the Department of any delays be responsible for project cost overruns repay grant funds which are not spent in accordance with the funding deed repay unspent grant funds submit progress reports as required meet monitoring and acquittal requirements acknowledge the grant as per the Funding Acknowledgement Guidelines for Recipients of NSW Government Grants acknowledge both the NSW and Australian Governments in funding announcements and signage, unless otherwise agreed provide data as requested by the department to support acquittal of grant funds and program evaluation participate in the Program evaluation and audits including to determine the extent to which the project has contributed to the Program objectives the department reserves the right to undertake an audit of grant funding within a period 7 years from the signing of the funding deed and applicants should maintain records for this period advise the department if additional funding is secured for the project advise the department of any changes to the grant recipient’s legal status.

The funding deed will include the department’s termination rights, including if the grant recipient has engaged in conduct that might cause reputational damage to the NSW Government or has provided misleading information in its application. After funding deeds are executed, the department may consider requests for variations to projects only in limited circumstances at the department’s discretion.

The department will pay grants in instalments. The funding deed will set out the instalment amounts and what the grant recipient needs to do receive each instalment (for example, complete specified activities and provide evidence of completion and reports within a timeframe). Grants are GST exclusive.

If a grant recipient is registered for GST, GST will be applied on top of the grant value when payment is made (where applicable). Grants are assessable income for taxation purposes, unless exempted by taxation law. Grant recipients should seek independent professional advice about taxation obligations or seek assistance from the Australian Taxation Office.

The NSW Government does not provide advice on individual taxation circumstances. If a grant recipient’s project is completed and there are unspent funds remaining from the grant allocation, the department may require the grant recipient to return the unspent funds.

Alternatively, the grant recipient may request to use the unspent funds on extending the scope of the project if the request aligns with the objectives of the Program and the grant recipient provides supporting information to the department. The department is under no obligation to agree with the request.

Indicative reporting and acquittal requirements The department will monitor how grant recipients are spending their grants and how their projects are progressing. Grant recipients will be required to submit regular progress reports, final reports and other information to the department. Grant recipients will be required to inform the department if their circumstances change.

The department will monitor the funded projects against the purpose and objectives of the Program. Grant recipients will be required to participate in evaluation activities, such as surveys and project reporting. The source agency for the Program is the Department of Primary Industries and Regional Development (the department).

The department is administering the Program. The Program must align with its obligations set out in the Federation Funding Agreement – Environment: Murray-Darling Basin – Sustainable Communities. Type of grant opportunity This grant opportunity is an open and competitive funding round.

A key principle of any grant program is to achieve value for money. This is important to ensure that the benefits of the grants are maximised for the people of NSW.

Some ways in which applicants may contribute to delivering value for money include: consider the most efficient and innovative means of carrying out grant activities consider how government objectives and the applicant’s identified needs can be mutually achieved adopt an effective approach to identifying and managing risks collaborate with officials in monitoring and evaluation processes the extent to which projects delivered and operated by for-profit businesses or organisations demonstrate strong evidence that the project will deliver clear public benefit.

The program is designed to deliver value for money by requiring applicants to address this requirement as part of the assessment criteria. Applicant responses to value for money questions in the program application form will be assessed and inform funding recommendations made to the decision maker. Applicant co-contributions will be considered as part of the value for money assessment.

Anticipated assessment outcome date is Applicants will be notified confidentially from October 2026 or as soon as possible after a decision has been made Applicants can obtain support in preparing their applications. All enquiries should be sent to nswscp@dpird. nsw.

gov.au in the first instance and include the LGA that the project is located in. Enquiries will then be referred to the relevant department Economic Development Manager (where applicable). Online information webinar : The department held a live online information webinar on the 25 June