Local Capability Fund Grant

Win Major Contracts with LCF Funding

To win lucrative state government tenders, supply to major mining and civil projects, or break into competitive export markets, your business needs to match the capability of larger players. The Western Australian Government’s Local Capability Fund (LCF) is designed to bridge this exact gap—providing local small and medium-sized enterprises (SMEs) with up to 50% matched funding to completely transform their operational capacity.

However, the LCF is not a general handout. Funding is split across highly specific, time-sensitive rounds, and applications are intensely competitive. Assessors look for strategic projects that directly drive local jobs, industrial efficiency, and market competitiveness.

LCF Grant Key Aspects

The LCF operates through distinct funding rounds tailored to your specific growth needs. We align your business upgrades with the most high-yielding stream for your project.

  • Digital Transformation
    Secure funding to implement advanced cloud technologies, enterprise software, and automated services that drastically scale your productivity and efficiency.

  • Standards Compliance & Certification
    Engage external expertise to achieve critical third-party certifications (such as ISO 9001 for quality, ISO 45001 for safety, or cyber security frameworks) required to win tier-one corporate and government tenders.

  • Supplying Key Projects
    Specifically engineered to upgrade your infrastructure, buy advanced machinery, or train your workforce to actively supply major civil, defence, mining, or energy projects.

  • Regional & Aboriginal Business Uplift
    Dedicated pathways designed to strengthen the localised supply chains, capacity, and market footprint of regional and Indigenous-owned enterprises across Western Australia.

If eligible, businesses can claim a percentage of their qualifying R&D expenditure through their company tax return.

LCF Framework

The program is strictly capped, and funding is allocated in the exact order that applications are received. Timeliness and precision are mandatory.

Supplying Key Projects
Up to $50,00050% matched (You cover the other 50%)

Digital Transformation
Up to $50,00050% matched (You cover the other 50%)

Aboriginal Business Round
Up to $50,00050% matched (You cover the other 50%)

Standards Compliance
Up to $20,00050% matched (You cover the other 50%)

Regional Supplier Round
Up to $20,00050% matched (You cover the other 50%)

Funding Model
Reimbursement You must fund 100% upfront; LCF reimburses 50% upon completion

Is Your WA Business Eligible for LCF Funding?

The Location Test:

Your principal place of business must be registered and physically operating within Western Australia, with an intent to remain for at least 12 months post-submission.

Operational History

For major streams, your business must have been actively operating in WA for a minimum of 3 consecutive years (shortened to 12 months for specific Regional and Aboriginal business rounds).

Corporate Structure & Size

Your business must be a for-profit entity, registered for GST for at least 12 months, and employ fewer than 200 people (with at least one full-time equivalent employee in addition to the owner).

Trade-Exposed Requirement

You must operate in a sector that primarily supplies to other businesses or government bodies, rather than relying strictly on standard, walk-in local retail trade.

Frequently Asked EMDG Questions

This is the most critical aspect of the LCF. If you are successful, you must have the financial capability to pay for 100% of the project expenses, equipment, or consultancy fees upfront. Once the project is complete and we submit your proof of payment and receipts, the government reimburses your 50% grant component.

No. The LCF strictly prohibits retrospective funding. Any quotes, machinery purchases, or consulting engagements must formally commence after you have received official, written notification that your grant application has been approved.

Previous recipients are entirely eligible to apply for current or upcoming rounds, provided they have fully complied with their past funding agreements and have received less than $200,000 in total LCF funding over the last five years.

Final Thoughts

Australia’s R&D Tax Incentive remains one of the country’s most valuable innovation support programs. Whether through a cash refund or a tax credit, the incentive is designed to fuel cash flow, support investment, and drive long-term growth.

If your company is developing new technology, improving products, or solving complex technical challenges, it is worth reviewing your activities to ensure you are capturing the full benefits available to you.