Victorian Circular Economy Recycling Modernisation Fund – Round 6 is sponsored by Sustainability Victoria (Victorian Government) & Australian Government. This fund provides capital grants to eligible organisations to build the capacity, capability, and resilience of Victoria's resource recovery sector.

Victorian Circular Economy Recycling Modernisation Fund Round 6 Updated statement on outcomes from the Silver Review (19 March 2026) In its response to the Silver Review, the government has determined that Sustainability Victoria and its functions will be abolished in 2026. Read our full statement .

Victorian Circular Economy Recycling Modernisation Fund Round 6 Last updated: 25 March 2026 Sustainability Victoria is supporting eligible organisations through Round 6 of the Victorian Circular Economy Recycling Modernisation Fund. Wednesday 1 July 2026, 11:59 pm Sustainability Victoria (SV) is supporting eligible organisations through Round 6 of the Victorian Circular Economy Recycling Modernisation Fund.

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 may be additionally co-funded by the Australian Government’s Recycling Modernisation Fund (RMF). Applications must be submitted by 11:59 pm Wednesday 1 July 2026. Applications will be assessed on a rolling basis (as received).

The following are the guidelines for applying for this fund.

Projects must achieve at least one of the following primary objectives: improve the quality of recovered target materials to increase market uptake and/or meet market specifications increase the use and market demand of recovered target materials in remanufacturing and to make new products increase the recovery and domestic reprocessing of one of the following target materials and equipment types as outlined in the Eligible Materials and Equipment Table 1 below: hard-to-recycle plastics (Including e-plastics, EPS/PS, packaging (soft / flexible) plastics, agricultural plastics 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.

e-waste, such as photovoltaic (PV) panels, batteries, vapes or household appliances recovery of tyres to create crumb rubber for local markets (no other tyre recovery projects will be eligible) liquid paperboard / liquid packaging board Additional objectives (optional): 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 target materials 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.

Eligible infrastructure/Target material Eligible for agricultural plastics only Liquid paperboard / liquid packaging board *Shredders are eligible only in conjunction with further reprocessing. Applicants are required to meet the following requirements: for profit businesses must co-contribute at least $2 for every $1 funded and funding requests must be between $100,000 and $1,000,000 (ex GST).

social enterprises, not-for-profit organisations and local government organisations must co-contribute at least $1 for every $1 funded and funding requests must be between $50,000 and $1,000,000 (ex GST). SV reserves the right to negotiate the funding amount. Co-contributions must be for eligible activities (refer to 2.

3 What will be funded). Note that In-kind Contributions are not eligible under this fund and 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. Eligible organisations must be one of the following organisation types: 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). 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 – Grants Funding Programs agree to comply with the funding terms and conditions in the General grant funding agreement terms and conditions 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 are encouraged 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.

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. Individuals, and unincorporated entities are not eligible for funding. Organisations that have been operating for less than two years.

Funding will support projects that: meet one or more of the fund’s primary objectives are aligned with the Recycling Victoria: A new economy policy and, for applicable materials, the Australian Government’s national regulation of waste exports.

increase processing capability and capacity or improves the quality of target materials to meet product specifications for products or for re-manufacture or use target one or more of the following materials and equipment types as outlined in the Eligible Materials and Equipment Table 1 . purchase, install and commission new equipment or upgrades to existing equipment to provide services to external customers.

capital purchases: equipment only (including shipping of the equipment, installation and commissioning). source 50% or more of the project feedstock (materials) from Victorian sources, exemptions will be considered. 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 2027. Applicants must only submit one application per ABN and per facility. If a business has multiple eligible ABNs, it may submit one application per ABN, provided each application is for a different facility and the ABN provided will be the asset owner of the funded equipment.

Except Councils who can submit multiple applications for different sites. Before submitting an application, applicants are strongly encouraged to confirm with their organisation whether another application has already been or will be submitted. If more than one application is received under the same ABN and for the same facility, SV will contact the applicant to prioritise which application should proceed.

If another application is already being assessed for the same ABN and facility, subsequent applications will be deemed ineligible. 2. 4 What will not be funded SV will not fund projects that have commenced (e.g. funded equipment ordered and deposit paid) before the applicant is notified by SV in writing that their grant application is successful.

Note: if applicants fail to execute a Funding Agreement, their eligible costs will not be reimbursed. 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.

focus on materials not listed in these guidelines 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) do not meet the eligibility criteria of the grants funding 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 2027 Requests for retrospective funding, where projects have commenced before the Applicant is notified by SV in writing that their grant application is successful.

The following costs are ineligible for funding: 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 other than electrical 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 travel, conferences, training and other educational activities The assessment panel will assess applications as received on a rolling basis (as received) based on merit according to the criteria below.

Applicants must demonstrate: that the project meets at least one of the primary objectives of the fund that the funding requested is for equipment only, including quote/s for technology with delivery timeframes market supply of the material feedstocks and demand for the processed products.

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 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.

Describe how the project will be delivered including: a sound approach to delivering the project how the applicant can meet their co-contribution itemised project budget including evidence (eg quotes).

value for money for Victorians and potential leveraged funding (e.g. greater co-contributions) funding requested is for equipment (and related installation and freight) only, evidenced by quote/s for technology with delivery timeframes realistic and achievable timeframes to be commissioned and operational, with all relevant EPA and local government permits/licences obtained, by 30 April 2027 (addressed in the risks section of the application) project risk identification with mitigation measures in place.

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 $10M minimum Professional indemnity $5M minimum (if required) 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. 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. If you receive funding of more than $250,000 and require capital works as part of your project, plan for capital works signage (note that capital works are ineligible for co-contribution funding).

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. The below dates may change. There is no date for the notification of application outcomes.

We will provide applicants with updates as much as possible and when necessary. Wednesday 10 December 2025 Wednesday 10 December 2025 Before applying, we recommend you view the information session . The recorded information session reflects the grant program guidelines at the time of recording.

The maximum grant amount has since increased from $500,000 to $1,000,000 . Applicants should refer to the current grant program guidelines for the correct maximum amount. The grant program involves a competitive, merit-based application process.

Ensure that your organisation can apply . Ensure that your project is qualified . Read Sustainability Victoria’s General grant funding agreement .

Read Sustainability Victoria’s Terms of Participation – Grants Funding Programs . Create an account and start your application on the SmartyGrants website . Submit your application by 11:59 pm, 1 July 2026.

Late applications will not be accepted except under exceptional circumstances. 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. Tips for using SmartyGrants Click ‘Save progress’ every 10 to 15 minutes. This prevents your data from being lost if something happens when you’re filling in the form.

You will be automatically logged out of the system after 60 minutes of inactivity (where you did not click ‘Save progress’ or navigate between pages). Once logged out, you will lose any changes that were not saved. Wait for your file to be uploaded.

Wait for your document to be successfully attached before going to another page. If not, the file upload will be cancelled. The maximum size per file is 25MB.

Once you’ve submitted your application, you cannot make any changes. Check your application carefully. You will receive a confirmation email.

When your application has been submitted successfully, you will get an automatic receipt from SmartyGrants. For any technical issues, please contact SmartyGrants on +61 3 9320 6888 during business hours. 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 Round 6 . 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 whilst the fund is open, up to 19 June 2026 at the latest, 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 assessment process.

Use of this service does not guarantee any level of success with any application. Please note: questions about the program eligibility or guidelines must be directed to the Grants Enquiries team at grants. enquiries@sustainability.

vic. gov.au 8. Why the Victorian Government is providing this funding In 2020, the Council of Australian Governments (COAG) agreed Australia should establish a timetable to regulate 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.

To support the COAG waste regulations, the Australian Government announced a one-off boost to Australia's capacity to sort, process, and remanufacture , through the Recycling Modernisation Fund.

Victorian Circular Economy Recycling Modernisation Fund provides 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 regulation on waste materials, increase the quality of materials for manufacturing and create jobs in the circular economy.

The Australian Government is contributing over $200 million towards new and upgraded recycling infrastructure through the its Recycling Modernisation Fund . The RMF will see $1 billion of investment in recycling infrastructure, with contributions from the states and territories and industry. RMF projects already announced will increase Australia's annual processing capacity by over one million tonnes.

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.

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

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

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

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.

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. 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.

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.

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 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.

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

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. We cannot review drafts or provide feedback.

In the subject line, use the grant name VCERMF Round 6 . grants. enquiries@sustainability.

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