Provides support for eligible businesses to enhance their operations through digital and data technology.

The Local Capability Fund (LCF) helps small and medium-sized enterprises in Western Australia to increase their capability, capacity and competitiveness as suppliers of products, services and works to the Western Australian Government, major projects and other important markets. Applications close 4 September 2025.

The fund can be used for expenses such as:

• Making improvements to internal infrastructure, plant and equipment
• Training
• Meeting pre-qualification requirements for supply-chain entry
• Buying and upgrading essential equipment
• Engaging consultants to advise on matters including occupational health and safety, marketing, finance and cybersecurity
• Planning improvements to internal infrastructure, plant and equipment and training.

The Digital Transformation Round provides initial support for eligible businesses to adopt and use digital and data technology for the purpose of improving their productivity, competitiveness, resilience, safety and sustainability.

There are two streams of funding available under this round.

Stream 1 – Operational improvements:

$5,000 - $25,000 on a matched funding basis (i.e., total project cost would need to be at least $50,000 to receive the full $25,000 grant).

Stream 2 – Advanced technology purchase and integration:

$5,000 - $50,000 on a matched funding basis (i.e., total project cost would need to be at least $100,000 to receive the full $50,000 grant).

The focus of this round is supporting small to medium enterprises to use existing technologies and services and not for research or the commercialisation of new ideas.

To be eligible for funding applicants must:

• Have an Australian Business Number (ABN)
• Be registered for GST for at least 12 months prior to application submission
• Have been operating in Western Australia for at least three years at the time of application submission
• Be a for-profit organisation or business (not-for-profits and charities are ineligible)
• Have their principal place of business in Western Australia
• Have a turnover of more than $500,000 in at least one of the previous three financial years
• Have at least one full-time equivalent (FTE) employee, in addition to the owner, but fewer than 200 FTE employees at the time of application submission.

Click here to view full funding guidelines on the provider's website.

Smith Thornton subscribes to a grant search provider and can help you prepare your grant application. If you have any questions our Business Services Advisor Jenna van Nierop will be happy to assist. You can email her at jennav@smiththornton.com.au or call her on 9842 5155.