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.
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
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.
