AI grants and support for Queensland manufacturers

Two Queensland Government programs open in late 2026 can help manufacturers put AI to work. They suit different projects: one provides AI services, the other co-funds equipment and systems a manufacturer buys. This guide summarises both from the official program guidelines as at 9 October 2026. Check the current guidelines before applying, as details can change.

Queensland Manufacturing AI Uplift trial

The Queensland Manufacturing AI Uplift trial program is funded by the Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development and delivered by ARM Hub. It is part of the Transforming Queensland Manufacturing Strategy 2025–2030 and aims to help manufacturers implement high-return AI use cases.

What it provides

• An AI Roadmap. Shortlisted applicants work with ARM Hub on use-case priorities, return on investment, readiness and a draft project plan. This stage needs staff time but no matched funding.
• Implementation services. Selected Flagship Companies then receive AI implementation services from ARM Hub. The government contributes 80 per cent of the project value, between $150,000 and $250,000 per project, and the company contributes 20 per cent in cash plus staff time.
• Services, not cash. Participants don’t receive a cash grant. The services run on an AI platform hosted on sovereign Australian cloud infrastructure.

Who is eligible

• A manufacturer under ANZSIC Division C, with manufacturing as its principal activity and source of most turnover
• 5 to 500 full-time equivalent employees, with at least half of them in Queensland
• A Queensland project site, an existing manufacturing presence in the state, and at least two consecutive years operating in Queensland
• GST registration and an active ABN

Equipment and on-premises hardware, such as servers and GPUs, are listed as ineligible costs. The program therefore suits AI use cases built on data and cloud services more than projects that need new hardware on the line.

Key dates

Expressions of interest close on 30 October 2026, with projects for selected Flagship Companies expected to start in 2027. Program details and the link to the EOI form are on the Business Queensland AI Uplift page.

Transforming Queensland Manufacturing Grants, Round 2

The Transforming Queensland Manufacturing Grants Program (TQMGP) is a $79.1 million program over three years, with six competitive rounds opening about every six months. Round 2 offers $12.5 million, with half reserved for projects located solely in regional Queensland (outside the Brisbane, Gold Coast, Ipswich, Logan, Sunshine Coast, Moreton Bay and Redlands council areas). Applications close at 1pm AEST on 25 November 2026.

What it funds

The program reimburses up to 50 per cent of eligible project costs, with grants between $100,000 and $1,500,000. Eligible costs include:

• advanced robotics, automation and Industry 4.0 and 5.0 equipment, including purchase, installation, commissioning and training
• artificial intelligence systems that support manufacturing processes
• technology and systems for integration and manufacturing process improvement
• associated costs critical to the project, such as servers, software licensing for up to 12 months and cybersecurity

Ineligible costs include anything incurred before the grant agreement is signed, research and development, strategy or advice, leased equipment, and like-for-like replacement of existing equipment.

Who is eligible

• A Queensland-based manufacturing SME with majority manufacturing turnover (ANZSIC Division C)
• 5 to 200 full-time equivalent employees, including at least five in Queensland
• At least three consecutive years operating in Queensland at the close of the round
• A Queensland project site, GST registration and an active ABN
• The financial capacity to fund the project. Payment timing and security requirements depend on the grant agreement; see section 2.12 of the current guidelines

Successful applicants must also provide security, either a bank guarantee or a PPSR registration. The guidelines and application form are on the Business Queensland TQMGP page.

Where AI vision inspection fits

An AI vision inspection system combines several things these programs describe: cameras and lighting installed on the line, AI models trained for the manufacturing process, and integration with the plant’s control and data systems. Under the TQMGP guidelines, AI systems that support manufacturing processes, and the installation, commissioning and training needed to make them work, are listed as eligible costs. Whether a specific project qualifies is decided by the department against the guidelines.

A strong application rests on the business case more than the technology. Quality outcomes that are easy to measure, such as reject rates, rework, customer complaints and audit effort, give assessors something concrete. How to build the business case for vision inspection and the real cost of manual inspection cover the numbers to gather.

Preparing an application

• Read the guidelines first. Both programs have strict eligibility rules and mandatory documents.
• Get quotes early. TQMGP applications need a detailed cost breakdown supported by quotes dated within 12 months of the closing date, with multiple quotes per item where available.
• Don’t start early. Costs incurred before the grant agreement is signed are ineligible.
• Show the outcome. Applications are assessed on productivity, competitiveness and jobs, so baseline figures for the problem you’re solving matter.
• Talk to a Queensland Manufacturing Hub. The department recommends contacting your local hub to discuss your project and eligibility before applying.

Industrial AI is not affiliated with either program and doesn’t advise on eligibility. We can scope an Industrial AI Vision system for your line, explain how it would integrate with your plant, and provide a detailed quote for your application.