Recycling Modernisation Fund - Plastics Technology stream – Queensland approach

Frequently asked questions

• What is the Recycling Modernisation Fund - Plastics Technology stream?

  The Recycling Modernisation Fund (RMF)- Plastics Technology stream is an initiative of the Australian Government, supported by the Queensland Government, to significantly increase recycling and recovery rates of hard-to-recycle plastics.

• Why is the Queensland Government supporting this program?

  We want to accelerate projects that will make a significant difference on plastics recovery and recycling in Queensland and will contribute to moving Queensland towards a circular economy by adding value to waste resources and retaining them where possible within local economies.

  This focus on the circular economy is a priority within the Queensland New-Industry Development Strategy, which sets out the Queensland Government’s approach to proactively developing the industries that will be in demand in a decarbonising world.

• What is the Queensland Approach?

  The Queensland Government sought proposals to be considered for funding under the RMF Plastics Technology stream that will establish on-shore capability and build capacity to meet future demand for hard-to-recycle plastics diversion from landfill within Queensland.

  The Queensland approach  is complementary to the Australian Government’s RMF Plastics Technology stream program guidelines and provided additional information to applicants to shape project proposals that align with the Queensland Government’s identified priority areas for investment.

• How will the fund be managed?

  Under the Federation Funding Agreement – Environment and co-funding arrangements, the Queensland Government will administer the program for Queensland-based projects through the Department of State Development, Infrastructure and Planning.

• What kind of projects are supported for RMF Plastics Technology stream funding in Queensland?

  The Queensland Government sought private sector proposals for plastics recycling projects that align with one of three identified priority areas for investment.

  1. New PET (Polyethylene terephthalate) processing and production facility – specifically targeting the re-manufacture of food-grade plastic packaging using Australian-sourced recycled PET materials.
  2. New common-user plastic recovery capability – providing large-scale advanced sorting, separation (into individual polymer grades) and/or de-contamination of plastic material for further value-add processing as either input for domestic manufacturing or export.
  3. Development of local re-manufacturing capability to produce products for large-scale infrastructure projects (such as stadium seating and kerbside bins), utilising Australian-sourced recycled plastic material. Capability should be adaptable and responsive to market demands as required.

  In addition to the Australian Government’s criteria, to be considered for funding by the Queensland Government a project must also meet all the following requirements:

  • be located in Queensland
  • demonstrate that the project will make a significant difference on plastics recovery and recycling in Queensland
  • demonstrate that the project will operate at a viable commercial scale
  • demonstrate the market need and supply chain demands/gaps
  • demonstrate investment readiness
  • recycle hard-to-process waste plastics that are currently being landfilled or recovered to lower-value outlets
  • increase the capacity for domestic sorting, processing, recycling and remanufacturing of materials
  • deliver new or improved recycling infrastructure
  • use only technology and/or equipment that has successfully demonstrated commercial-capability nationally or internationally
  • be completed by 30 June 2027.

• What kind of projects won’t be supported by Queensland?

  The following projects will not be considered:

  • projects that are predominantly waste-to-energy (energy from waste) or waste-to-fuel are not eligible for funding. A project will only be considered for funding where waste-to-fuel or waste-to-energy is incidental to, or a by-product of, a process that is primarily designed to achieve plastics circularity
  • projects that have already commenced or are planned to commence, regardless of financial support from government, for example:
    • your organisation is already contracted to provide the infrastructure or service that is proposed, or to supply the recovered resources that are proposed to be produced by the project
    • funding has been approved and committed to the project, regardless of the financial incentive
    • construction has commenced or contracts have been executed for supply/construction of the facility
  • projects not directly resulting in new infrastructure investment, for example, education and behaviour change programs, market development, strategy development, and feasibility studies
  • projects already funded by grants for the same project costs
  • projects that do not address plastics recycling.

• What kind of organisations are eligible for funding?

  Under the RMF Plastics Technology stream, your organisation and project must meet minimum eligibility requirements to be considered for funding, detailed in the program guidelines.

  To be considered for Queensland Government support and funding under the RMF Plastics Technology stream your organisation must also:

  • be a legal entity with an active Australian Business Number (ABN) or Australian Registered Body Number (ARBN)
  • propose capital investment in recycling facilities and infrastructure to be located in Queensland
  • have obtained internal approval to make the application, including approval to co-fund the project to at least 50 per cent of the eligible capital costs, before applying for the fund (note – for successful Queensland projects the funding ratio will be 25 per cent Australian Government, 25 per cent Queensland Government and 50 per cent project proponent)
  • have the financial and technical capacity to deliver the project
  • have a history of effective regulatory compliance.

  The Queensland Government will NOT consider projects by local governments or universities/research institutions without a commercial industry partner under this program.

  The applying organisation may be a business, a not-for-profit or non-government organisation. You may also be in the process of establishing a business for the purpose of launching a recycling project. Only one application will be accepted per organisation, including where you are the lead for a joint application.

  Partnerships between industry and local government may apply, but one organisation should be identified as the lead applicant and administrator of the project. Individuals and sole traders are not eligible.

• Will companies that have been unsuccessful in securing other Queensland Government grant funding be able to reapply for funding under the RMF Plastics Technology stream?

  Yes, if they meet the eligibility criteria.

• Will projects be eligible if processing a mix of eligible waste streams and other waste streams?

  Yes, mixed-waste stream projects are eligible; however, the primary waste stream must be waste plastic and only the eligible plastics activities will be able to receive funding.

• Will projects from interstate applicants or involving processing of waste streams from other states be eligible?

  Applicants can be located or based interstate, but the project must be for investment in facilities or infrastructure located within Queensland. Projects must primarily process waste streams from Queensland. Applicants must have an active Australian Business Number (ABN) or an Australian Registered Body Number (ARBN).

• Will applications from consortiums be eligible for funding?

  Yes. Where a joint application is submitted by a consortium, a lead organisation must be nominated for the application. The lead organisation for the project will, if the application is successful, sign the funding agreement, receive the funding and assume legal responsibility for performing the activities and meeting the outcomes under the grant agreement.

• Will RMF Plastics Technology stream funding be provided for projects that have already started?

  No. Projects that have already commenced or are planned to commence, regardless of whether or not they have secured government or non-government financial support, are not eligible for funding.

• What is the application and assessment process for this program?

  Application and assessment for the RMF Plastics Technology stream involves the following five-step process:

  1. Queensland online enquiry form and detailed application. You submit an online enquiry form that will be reviewed against eligibility requirements and Queensland’s identified priority areas for investment. If your proposal meets the requirements, you will be invited to submit a detailed application.
  2. Queensland Government Assessment.  Your detailed application will be reviewed by the Moderation Panel who will shortlist projects to progress. At this step, you may be requested to provide further details in relation to your application. The panel will assess the detailed application against the Australian Government assessment criteria, review the due diligence document, and make a recommendation on the project. All shortlisted projects will be progressed to the Inter-Departmental Panel for consideration – both recommended projects and not recommended projects.
  3. Interdepartmental review and application to Australian Government. The detailed applications will then be considered by the Inter-Departmental Panel. This panel will determine Queensland projects to be put forward to the Australian Government for assessment and consideration. The Financial Delegate approves supported projects and provides a letter of support. The Queensland Government will then submit supported projects to the Australian Government for assessment.
  4. Australian Government assessment. The Australian Government will assess the applications against the published program guidelines. The Australian Government minister will approve projects.
  5. Notification and funding agreement. The Queensland Government will receive written notification of the Australian Government minister’s decision on the approved projects. The Queensland Government will seek internal final approvals and notify project proponents of the outcomes of their proposals. If successful, a conditional letter of offer will be issued with information about the terms on which funding will be made available.

• If a project meets the assessment criteria, does this mean the applicant will be guaranteed to receive a grant?

  No. Funding will be offered to the most meritorious applications and there is no guarantee of approval at any stage in the process.

• How long will it take before I know if my application has been successful?

  The program team will make ongoing contact with applicants throughout the assessment process. Announcements about successful projects will be made as successful projects are contracted.

• When can I start my project

  Successful projects cannot commence until a funding agreement has been signed and executed.

• When does my project have to be delivered by?

  To meet the project eligibility criteria, projects must be commissioned and operational by 30 June 2027.

• Is there a minimum or maximum of funding available for an individual project?

  The total minimum funding request is $2 million (excluding GST). The total maximum funding request is $20 million (excluding GST).

  The amount of funding allocated to successful Queensland projects will be at the discretion of the Queensland and Australian Governments, with applications considered on their merit and alignment with program guidelines and the Queensland approach .

• What percentage of the project budget do I need to contribute?

  For Queensland projects, the RMF Plastics Technology stream will reimburse up to a maximum of 50 per cent of actual expenditure on eligible project costs. Applicants must be able to provide the balance of eligible project costs not funded by the program and all ineligible project costs required to complete the project in its entirety.

• When do applications for Queensland projects open and close?

  The RMF Plastics Technology stream program opened on 18 July 2023.

  The closing date for completed detailed applications to be submitted to Queensland Government was 11 September 2023.

  Applications are assessed by the Queensland Government as per the assessment process. The Queensland Government will then submit supported projects to the Australian Government for assessment by the closing date 13 November 2023.

  Key date	Key activities/action	Responsibility
  18 July 2023	Program opens	Department
  11 September 2023	Closing date for detailed applications to be submitted to Queensland Government	Applicant
  As required	Queensland Government assessment and consideration of applications. Detailed economic and technical assessments completed.	Department
  13 November 2023	Applications close for state governments to Australian Government	Department

  Review the Queensland approach document  and Australian Government program guidelines for more details.