Native Forest Transition: Small Business Development and Diversification grants

This grant is not restricted to businesses in the designated native forest area. Any Western Australian business can apply as long as they meet the criteria set out below.

Eligibility criteria 1

Demonstrated reliance on the WA native forestry industry or reliance on native forestry or native forest products.

The accepted evidence is:

• full financials for 2020-21 and/or 2021-22 financial years, and
• a list of native forest suppliers and/or customers to evidence demonstrated reliance.

An eligible business must be able to prove that 50% of its turnover is derived from native forestry or 50% of a business model is focused on servicing the industry.

The Department of Jobs, Tourism, Science and Innovation (JTSI) and the South West Development Commission (SWDC) are working together to deliver this program.

The Native Forest Transition team can provide advice and some guidance, but to determine if your business meets the 50% threshold, we recommend you work with your accountant. If you’d like to speak to a member of the team to discuss the threshold, please email us.

Eligibility criteria 2

Your business must have an Australian Company Number (ACN) or an Australian Business Number (ABN).

Accepted evidence is:

• a copy of your ACN or ABN.

Eligibility criteria 3

Your business must be a valid legal entity that can enter into a legally binding funding agreement with the WA Government.

Accepted evidence is:

• a copy of your ACN or ABN.

Eligibility criteria 4

Your business must be a solvent Western Australian-based businesses or organisation. 

Accepted evidence is:

• full financials for the 2021-2022 financial year, and
• a third-party endorsement of business accounts from a certified accountant, certified financial advisor or certified tax expert or a statement of compliance.

Ineligible organisations

1. Local, state, or federal government authorities/agencies.
2. Government Trading Enterprises (GTEs).
3. Individuals (without an ABN).
4. Trusts (an incorporated trustee may apply on behalf of a trust where it meets the eligibility requirements set out above).
5. Any business that has received a payment from the Native Forestry Transition - Business Transition Programs of less than $400,000 can apply to this program. If successful, the amount of the payment you have already received will be deducted from the approved allocation from the SBDD grant. 

Eligible businesses must apply through the online Smartygrants portal.

Apply

How will you create jobs?

Your application for the SBDD grant must identify how your project will create new jobs or protect existing jobs. 

Objectives to address

The application must address one or more of the 4 SBDD objectives.

1. Business expansion – expanding diversified business operations.
2. Future Proofing – strengthening already diversified business operations.
3. Industry Diversification – entering a new market or industry with a new product.
4. Innovation – development and implementation of a new or significantly improve product or process.

Any application that fails to address the jobs component will not be assessed and will be deemed ineligible. 

Included activities

The SBDD grants will be awarded to proposals that demonstrate a commitment and capacity to create new jobs, expand, diversify, future proof and innovate.

Assistance will be flexible and tailored to specific project proposals and may include, for example, support to:

• develop and commercialise new business opportunities to replace native forest revenue streams 
• integrate new technology to improve the productivity of existing businesses or enable development of new business streams
• develop specific infrastructure, plant or equipment that supports development of new businesses or improves innovation and productivity of existing businesses
• protect and create existing jobs, particularly for displaced timber workers.

Excluded activities 

1. Projects that do not demonstrate sustained employment and/or the protection of existing jobs.
2. Project activities outside of Western Australia.
3. Retrospective, contingency or on-going operational costs (for example, operating, maintenance and office costs such as rent, insurance, telephone, salaries). 
4. Purchase of land.
5. Ongoing salaries/employment of new or existing staff.
6. GST payments (this applies to GST registered organisations only).
7. Activities that would be carried out in the normal course of business, such as maintenance.
8. Projects that would require ongoing assistance from the WA Government.
9. Core business, for example:
   - purchasing off-the-shelf software
   - costs of generic software associated with the normal administrative functions of the business
   - recruitment activities
   - developing sales promotion materials
   - advertising 
   - general legal advice.

Steps in the process

1. The Native Forestry Transition team will carry out a preliminary assessment of the eligibility criteria set out in Step 1.
2. A multi-agency WA Government assessment panel will assess eligible grant applications. 
3. Unsuccessful applicants will be notified following the assessment process.
4. Unsuccessful applicants in Round 1 can seek feedback on their application and resubmit a revised proposal to Round 2.

Assessment criteria

• Jobs - creating new or protecting existing jobs (40%)
• Demonstrated alignment with SBDD objectives (minimum of 1) - Business expansion, industry diversification, future proofing, innovation (40%)
• Value for money - Justification of the cost (financial, social or environmental) against the project’s expected benefits and results (20%)

Business plan components

In addressing the criteria above, you must submit a detailed business plan that covers the key business plan components below.

Depending on the nature of the application, the assessment panel may refer your business plan, in confidence, to a third party for independent technical assessment. If more detailed project information is required for the assessment process, you will be contacted. Following assessment, the panel will make recommendations for funding to the Minister for Forestry.