AI Grants in Australia: Funding Opportunities You Should Know About
Federal and state AI grants are available now for Australian businesses and researchers. Here's what funding exists, who qualifies, and how to apply.
Australia's governments — federal and state — have made significant commitments to funding AI adoption across the economy. Whether you're a small business owner, a researcher, a startup founder, or a not-for-profit, there are programs designed to help you access the tools, training, and technology you need to benefit from artificial intelligence.
Here's a practical guide to the major AI grant opportunities available to Australians in 2026.
Federal Government Programs
Industry Growth Program
The Australian Government's Industry Growth Program provides grants of between $50,000 and $5 million to small and medium businesses developing new products and services — including those built on AI. The program is administered by the Department of Industry, Science and Resources and is open to businesses across all sectors.
To be eligible, your business must be developing a genuinely new product, process, or service. AI-powered tools, platforms, and applications are explicitly included. Applications are assessed on commercial viability, innovation, and the potential to create Australian jobs.
Entrepreneurs' Programme
The Entrepreneurs' Programme connects Australian businesses with experienced business advisers and provides access to grants for innovation and commercialisation. The Business Growth stream includes funding for businesses looking to adopt new technologies — including AI tools that improve productivity, reduce costs, or open new markets.
The programme also includes an Accelerating Commercialisation stream that provides grants of up to $500,000 to help businesses bring novel AI products to market.
Australian Research Council Grants
For researchers and universities, the Australian Research Council (ARC) funds a wide range of AI-related research through its Discovery, Linkage, and Industrial Transformation programs. Linkage grants in particular are designed to connect university researchers with industry partners — making them well-suited to applied AI projects with real commercial applications.
State Government Programs
New South Wales
NSW's Digital Restart Fund supports digital transformation projects across government and industry, with a strong focus on AI and data analytics. The NSW Government also supports businesses adopting AI through its digital transformation initiatives, with matched funding available through various industry programs.
Victoria
Victorian businesses can access the Digital Jobs program, which funds AI training and upskilling for workers. The LaunchVic accelerator program also supports AI startups with grants, mentoring, and connections to investors.
Queensland
Queensland's Advance Queensland program includes specific funding streams for AI and advanced technology businesses. The Business Development Fund provides equity investment to early-stage technology companies, including those building AI products.
Western Australia
The WA Government supports businesses developing innovative products and services through programs including the New Industries Fund and the Small Business Development Corporation, with AI-related projects eligible across multiple streams.
Research and Development Tax Incentive
Beyond grants, the R&D Tax Incentive is one of the most accessible forms of government support for AI development. Businesses with annual turnover under $20 million can claim a 43.5% refundable tax offset on eligible R&D expenditure — which includes the cost of developing and testing AI systems.
For larger businesses, a non-refundable 38.5% tax offset applies. The incentive is administered jointly by the ATO and the Department of Industry, Science and Resources.
How to Find the Right Grant
The best starting point for finding AI grants is the Business.gov.au grants finder, which allows you to search by business size, location, industry, and funding type. The site is updated regularly and covers both federal and state programs.
For research-focused grants, the ARC's grants search tool and the National Health and Medical Research Council (NHMRC) portal are the most comprehensive sources.
If you're unsure where to start, a registered grants consultant can help you identify the programs you're eligible for and prepare a competitive application — the cost is often worthwhile given the size of the grants available.
Not-for-Profit and Community Sector Support
AI grants are not limited to commercial businesses. Not-for-profit organisations and community groups can access support through programs including the Digital Inclusion Fund and various state-level community technology programs. For organisations working in areas like disability services, aged care, and community health, AI tools that improve service delivery and reduce administrative burden can have significant social impact.
The Australian Government's Digital Inclusion Index tracks digital access and capability across the population, and programs targeting not-for-profits are designed to ensure that the benefits of AI reach the communities these organisations serve — not just the commercial sector.
Making the Most of Your Application
Grant applications for AI projects are most successful when they clearly articulate the problem being solved, the specific AI approach being taken, and the measurable outcomes expected. Reviewers are looking for evidence that the applicant understands both the technology and the market or social context it is being applied to.
For businesses applying for the first time, the Business.gov.au grants adviser service provides free guidance on which programs are most relevant and what a competitive application looks like. Taking the time to speak with an adviser before submitting can significantly improve your chances of success — and help you avoid the common mistakes that cause otherwise strong applications to be unsuccessful.
Sources: Australian Government, Industry Growth Program (industry.gov.au); Australian Government, Entrepreneurs' Programme (business.gov.au); Australian Research Council (arc.gov.au); Australian Taxation Office, R&D Tax Incentive (ato.gov.au); Business.gov.au grants finder (business.gov.au).
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