Regional Economic Development Grant

Up to $250,000 to Scale Your Regional WA Business

Operating a business in regional Western Australia comes with incredible opportunities, but it also carries unique structural challenges—including high infrastructure costs, logistics barriers, and workforce accommodation constraints. The State Government’s Regional Economic Development (RED) Grants program is designed to inject vital capital straight into locally driven projects, offering up to $250,000 in matched funding to stimulate long-term economic growth, job sustainability, and industrial diversification across WA’s nine regions.

The RED Grant is explicitly not a general business handout. It is an intensely competitive, merit-based program. To win approval, your business case cannot just focus on increasing your internal profits; it must explicitly prove how your project will ripples outward to benefit the broader regional community—whether through structural local content outcomes, Aboriginal empowerment, or supply chain resilience.

Key Aspects & Strategic Value

The independent regional boards evaluate submissions based on strict socioeconomic benchmarks. We strategically position your project budget to champion these core pillars:

  • Sustainable Job Creation:
    Clear evidence demonstrating how the funding will directly generate long-term, sustainable full-time equivalent (FTE) roles within the region, both during construction and ongoing operations

  • Industry Diversification & Expansion:
    Support to introduce completely new capabilities, innovation pilots, primary production techniques, or value-add processing models that reduce the region’s reliance on a single economic sector.

  • Localised Productivity Upgrades:
    Funding the purchase of advanced plant machinery, structural infrastructure, or digital automation that radically enhances your operating capacity and supply-chain efficiency.

  • Attracting New Investment:
    Projects engineered to create a magnetic economic effect, drawing secondary business activity, tourism traffic, or external private equity into the regional ecosystem.

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

Financial Framework of the RED Program

The RED Grant functions as a strict 50/50 cash co-contribution scheme. While most regions offer funding up to $250,000, specific regional boards enforce lower maximum caps to distribute funds further.

Standard Baseline Caps
(e.g., Gascoyne, Kimberley, Goldfields, Mid West, Peel)Up to $250,000Minimum 50% cash match (Dollar-for-dollar)

South West Region Cap
Up to $150,000Minimum 50% cash match (Dollar-for-dollar)

Wheatbelt Region Cap
Up to $150,000Minimum 50% cash match (Dollar-for-dollar)

Assessment Window
4 to 6 Months Thorough review by local RDC panels

Total Program Pool
$60.85 Million Allocated across an ongoing 11-year commitment

Is Your Company Positioned to Secure CBG Funding?

To qualify for a RED Grant, your enterprise must satisfy clear baseline legal boundaries, while demonstrating immediate operational readiness:

Legal Structure:

You must hold an active Australian Business Number (ABN) and be a legally incorporated entity capable of entering into a binding financial contract with the WA Government.

The Location Multiplier:

While your headquarters do not strictly have to be regional, the entirety of the proposed project must be physically executed within, and deliver verifiable economic benefits to, one of WA’s nine designated regions.

Financial Capability & Co-Contribution

You must possess the cash reserves or pre-approved finance to fund your minimum 50% share of the project cost upfront, alongside proving you can absorb any ongoing operational/maintenance costs.

Frequently Asked Commercialisation Bridge Questions

No. The guidelines strictly specify a minimum 50% cash co-contribution for business applicants. In-kind contributions (such as donating your own staff’s time or utilizing existing internal equipment) can be included in the application to demonstrate your overall commitment and strengthen the business case, but they cannot form part of your mandatory matching cash baseline.

Every single region is managed by a distinct Development Commission (e.g., GEDC for Goldfields, KDC for Kimberley) that publishes its own unique strategic priorities document. Applications that fail to engage with local grant officers prior to submission are rarely competitive. We manage this stakeholder alignment for you, ensuring your narrative addresses their specific localised needs (such as workforce accommodation or a low-carbon transition).

Funding cannot be used for retrospective expenses incurred before the funding agreement is signed, standard recurring operational costs, routine vehicle purchases, general marketing websites, or projects that create unfair commercial competition against an existing, established local regional provider.

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.