AI Grants and Funding Opportunities for Australian Businesses¶

Artificial Intelligence (AI) is reshaping industries across Australia. To support businesses in responsibly adopting and scaling AI, a mix of government grants, research programs, and industry‑backed accelerators are available. This article provides a consolidated overview of the most relevant opportunities for Australian businesses today.

Federal Government Programs¶

AI Adopt Program¶

Provided $3–5 million over four years for up to 50% of project costs.
Aimed at establishing AI Adopt Centres to help SMEs integrate responsible AI.
Currently closed, but future rounds may reopen.
➡️ Learn more

AI and Digital Capability Centres¶

The Australian Government allocated $44 million to establish four AI and Digital Capability Centres.
Grants of up to $11 million each, designed to help SMEs access AI training, services, and commercialisation pathways.
Program concluded, but may return in future iterations.
➡️ Source

Catalysing the AI Opportunity in Our Regions¶

Competitive grants between $250,000 and $500,000 for regional businesses to develop and demonstrate AI solutions.
Required matched co‑funding, and ran across three rounds.
Program concluded.
➡️ Program details

R&D Tax Incentive¶

Ongoing tax relief for businesses conducting R&D, including AI:
43.5% refundable offset for SMEs (<$20m turnover).
38.5% non‑refundable offset for larger firms.
Program is active and ongoing.
➡️ More information

Australian Research Council (ARC) Programs¶

Competitive grants supporting research between universities and businesses.
Discovery Projects: $30k–$500k annually for up to 5 years.
Linkage Projects: Promote industry–academic partnerships; in 2024 Round 2, $46.6m was awarded to 75 projects.
Program is active and ongoing.
➡️ Discovery Projects | Linkage Projects

State-Level Opportunities¶

South Australia: $28 Million AI Initiative (2025-2029)¶

$7 million annually for proof‑of‑value trials.
Focused on healthcare, policing, allied health, social work, and legal/financial services.
Supports public sector AI adoption while safeguarding jobs.
Program is active (2025-2029).
➡️ Read more

AIML (Australian Institute for Machine Learning) Programs¶

Centre for Augmented Reasoning: $20m federal funding.
Industrial AI SME Grant Program: Helps South Australian SMEs adopt AI, running until 2028.
RAIR (Responsible AI Research Centre): $20m investment in ethical AI.
Partnerships with industry (e.g., CommBank Centre for Foundational AI Research, $6m).
Programs are active.
➡️ More information

NSW: Early Adopter Grant Program¶

Part of the AI in NSW Planning project.
In 2024, 16 councils received a collective $2.7 million+ to trial AI in planning systems, backed by a $5.6m commitment.
Program active in 2024, future rounds uncertain.
➡️ Source

Industry and Private Sector Programs¶

National Reconstruction Fund Corporation (NRFC)¶

Government‑owned but industry‑driven co‑investment fund.
Committed $32m to Harrison.ai and targeting $550m by end of FY25.
Expanding to $1b in FY26 and $3b by 2028.
Program is active.
➡️ Read more

AWS Generative AI Accelerator¶

Backed by US$230m (~AU$346m) investment.
Supports 80 early‑stage Australian startups.
Offers up to US$1m in AWS credits plus 10 weeks of mentorship.
Program is active (global cohort includes Australian startups).
➡️ Details

Fearless Innovator Grant Program (South Australia)¶

$100,000 in grants for female entrepreneurs.
Finalists include AI‑powered startups such as Tutbob (education AI).
Program ran in 2024, future rounds uncertain.
➡️ Announcement

H2 Ventures Accelerator (Sydney)¶

VC‑backed accelerator focusing on fintech, data, and AI startups, based at the Sydney Startup Hub.
Backed by a $4m facility from Investec, with a $2m loan guarantee from NSW Government.
Program is active.
➡️ More info

Innovation Collaboration Centre (ICC, Adelaide)¶

Incubator at UniSA, supporting startups with mentoring, space, and growth programs since 2015.
Program is active.
➡️ About ICC

Australian Cyber Collaboration Centre (Aus3C, Adelaide)¶

Not‑for‑profit based at Lot Fourteen, opened in 2020.
SA Government‑funded, supporting industry with cybersecurity training, standards, and collaboration.
Program is active.
➡️ Aus3C

Summary Table¶

Program / Initiative	Type	Value	Key Focus	Status
AI Adopt Program	Federal Grant	$3–5m	SME AI adoption	Closed
AI & Digital Capability Centres	Federal Grant	$44m (total)	SME training, commercialisation	Concluded
Catalysing AI in Regions	Federal Grant	$250k–$500k	Regional AI solutions	Concluded
R&D Tax Incentive	Tax Offset	38.5–43.5%	AI R&D projects	Active
ARC Discovery & Linkage	Competitive grants	$30k–$500k annually	University–industry research	Active
SA AI Initiative	State Program	$28m over 4 years	Healthcare, policing, services	Active (2025-2029)
AIML Industrial AI SME Grant	SME Grant	Expert access	Industrial AI adoption	Active (to 2028)
NSW Early Adopter Program	State Grant	$2.7m+ (2024)	Planning system AI trials	Active (2024)
AWS AI Accelerator	Corporate	US$230m pool	Generative AI startups	Active
NRFC	Co‑investment fund	$550m+	Large-scale ventures	Active
Fearless Innovator Grant	Micro‑grant	$100k	Female founders in AI	Completed (2024)
H2 Ventures Accelerator	VC-backed	$4m+ facility	Fintech & AI	Active
ICC (Adelaide)	Incubator	Varies	Startup incubation	Active
Aus3C (Adelaide)	Cyber Hub	Varies	Cybersecurity & AI	Active

Final Thoughts for Businesses¶

For Australian businesses, the AI funding landscape is broad and diverse. SMEs can tap into practical support like the R&D Tax Incentive, AIML’s SME grant program, or AWS accelerator credits. Larger ventures and scale‑ups may find opportunities in NRFC co‑investment or ARC research partnerships. Niche initiatives, such as the Fearless Innovator Grant, highlight inclusivity and grassroots innovation.

With both government and industry partners investing in AI capability, now is the time for Australian businesses to explore these programs, align with responsible AI practices, and position themselves for future growth.