Australia’s flagship commercialisation grant program, the Industry Growth Program (IGP), has paused accepting new applications as the government reassesses the program’s future direction and funding allocation.
- Industry Growth Program pauses new grant applications
- Uncommitted funding to be reallocated over coming years
- Concerns rise over Australia’s innovation and startup funding stability
What happened
The Industry Growth Program (IGP), a federal grant initiative launched in 2023 to support startups and SMEs in commercialising new technologies, has stopped accepting new applications as of May 12, 2026. This move was quietly communicated to businesses and advisors while the Department of Industry, Science and Resources (DISR) reviews the program’s future.
The IGP combined advisory services with grants of up to $5 million and had delivered more than $200 million in matched grants. However, recent budget changes have reduced uncommitted funding levels, with $47.4 million now planned to be redirected across 2028-29 and 2029-30. Existing agreements and advisory services remain operational during the pause.
Why it matters
This pause occurs amid broader reform efforts in Australia’s startup and innovation ecosystem, including new tax incentives for startups and changes to the R&D Tax Incentive. However, reductions to commercialisation funding like the IGP raise concerns over the stability and predictability of support programs that startups rely on for growth and global scaling.
Australia has struggled historically to convert research into globally competitive companies, and support program interruptions exacerbate uncertainty. Many founders face challenges not only accessing funding but also trusting that these programs will continue through the lengthy grant preparation and commercialisation processes.
What to watch next
Stakeholders will closely monitor the government’s review outcomes to see how the IGP is reshaped, particularly whether grant rounds will become more targeted and have clearer, predictable application cycles. The program’s future design will influence how well startup commercialisation needs are met within Australia’s evolving innovation strategy.
Additionally, attention will focus on the department’s handling of remaining funds and how this pause fits with other federal and state innovation initiatives. The government’s response to the Ambitious Australia review recommendations on improving coordinated commercialisation support will also be a key factor shaping the longer-term startup funding landscape.