Funding & Startups

Australia's $287M startup grant program paused, funding pool cut by $102M

The Industry Growth Program, which has issued 1,000 advisory reports and up to $5M grants since 2023, stopped accepting applications last week. Federal budget cuts removed $102M in uncommitted funding. The pause hits deep-tech and industrial startups hardest, especially those building into National Reconstruction Fund sectors.

OnTargetIsh Team · · 2 min read
Australia's $287M startup grant program paused, funding pool cut by $102M

Australia's $287M startup grant program paused, funding pool cut by $102M

The federal Industry Growth Program has stopped taking new applications while the government reviews its future. The program was already running low on funds after budget cuts stripped $102M from the pool.

IGP launched in 2023 with $392.4M over four years. About $287M was earmarked for grants, the rest for admin. The Department of Industry, Science and Resources ran it alongside the National Reconstruction Fund, targeting renewables, medical science, transport, agriculture, resources, defence, and enabling tech.

The model worked in two steps: startups got an advisory report first, then could apply for matched grants. Early-stage commercialisation grants ranged from $50k to $250k. Growth-stage projects could get $100k to $5M. By August 2025, advisers had produced 1,000 reports. Much of the funding pool was projected to be committed by mid-2026.

Then the Federal Government's Mid-Year Economic and Fiscal Outlook removed $102M in uncommitted funding. That turned the pause from a review into a budget reality.

What this means for sales

IGP became a major non-dilutive funding source for deep-tech and industrial startups. The pause matters most for:

  • Later-stage commercialisation companies: Those counting on $1M-plus grants to fund customer acquisition and market entry just lost a funding path.
  • Grant consultants and advisors: Firms that built workflows around IGP advisory services and application support need new playbooks.
  • Accelerators: Programs that positioned IGP as part of their value prop now have a gap.

The timing is awkward. Budget week promoted startup tax incentives and R&D reforms while quietly cutting one of the largest grant programs. Existing applications are still being processed, but new applicants are stuck.

For sales teams at funded startups, this does not change your quota. For founders building pipeline around expected grant capital, it does. If your prospect was counting on IGP to fund a pilot, ask what Plan B looks like.

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