Victoria’s RMF Round 5: $2.72 Million to Power Hard-to-Process Plastics Recycling

Intro

Round 5 of Victoria’s Circular Economy Recycling Modernisation Fund (RMF) delivers a once-in-a-generation opportunity for recyclers to secure co-funded grants for equipment that tackles hard-to-process plastics. Originally capped at $1.72 million, the available budget has now grown to $2.72 million after earlier projects returned unspent funds. This means more Victorian businesses, social enterprises, not-for-profits and local councils can access grants of $250,000 – $1,000,000 (matched 1:1 by the applicant) to upgrade or acquire machinery that processes e-plastics, soft plastics and other challenging polymer streams.

Why Round 5 Is Critical for Victoria

Victoria currently recovers around 67 percent of its total waste, shy of the 80 percent target set for 2030. A major stumbling block is the treatment of multi-layer films, flexible packaging, electronic plastics and other “problematic” fractions that overwhelm standard sorting and extrusion lines. Round 5 directly addresses these pain points by financing equipment such as optical sorters, friction washers, float‐sink separators and melt-filter extruders—technology that lifts both capacity and the quality of output.

By redirecting an extra $1 million into the Round 5 pool, Victoria can now fund more projects, spread the benefits more widely across the state and accelerate progress toward the National Waste Policy goals. Upgraded capacity will reduce reliance on exporting mixed plastic bales, cut transport emissions and support local remanufacturing industries.

Eligible Projects and Applicants

Applications are open to Victorian organisations including:

• Recycling businesses operating in plastics, paper, organics or mixed waste

• Social enterprises delivering community recycling or rediscovery services

• Not-for-profit groups advancing circular-economy initiatives

• Local governments seeking to improve kerbside or transfer-station processing

To qualify, projects must:

1. Focus on hard-to-process plastics—flexible or composite packaging, e-waste plastics, automotive films, etc.

2. Demonstrate that equipment installation and commissioning can be completed by April 2026, with all planning and environmental approvals in hand before application.

3. Provide at least 50 percent cash co-funding (e.g. a $500,000 purchase would need $250,000 in grant funding matched by $250,000 from the applicant or third-party investors).

4. Detail procurement research—vendor lead times, installation schedules and maintenance arrangements—to prove delivery feasibility.

Projects purely converting existing stockpiles may be de-prioritised; the focus is on building new, sustainable processing pathways rather than simply liquidating stored material. Waste-to-energy proposals that do not recover polymers for reuse are ineligible.

Grant Amounts and Delivery Schedule

• Grant range: $250,000 – $1,000,000 per project (matched 1:1).

• Total Round 5 pool: $2.72 million.

• Closing date: 11:59 pm, Monday 12 May 2025.

• Completion deadline: 30 April 2026.

Organisations that secure funding must have machinery installed, tested and fully operational by the completion date to draw down the grant.

Application Support and Assessment

Applicants should begin by registering in the SmartyGrants portal and familiarising themselves with the full application form. Sustainability Victoria offers an Investment Facilitation Service—a no-cost, impartial advisory function—to polish proposals and ensure they meet the “investment-ready” criteria. Note that facilitation does not guarantee success; it merely strengthens your submission before the evaluation panel meets.

Key application steps:

1. Register early in SmartyGrants to unlock the form and guidance materials.

2. Engage the facilitation service by 5 May 2025 to refine technical scopes, delivery timetables and risk assessments.

3. Prepare detailed quotes and specifications for all major equipment, including shipping and installation estimates.

4. Assemble environmental permits and planning approvals to demonstrate “shovel-ready” status.

5. Submit the completed application by the deadline—late or incomplete submissions will not be considered.

Assessment will focus on the project’s ability to expand processing capacity, improve material quality, and deliver a robust return on public investment through job creation and emissions reductions.

Connection to the National Recycling Modernisation Fund

While Round 5 represents Victoria’s co-funded slice of the national effort, it is part of a broader $600 million Australian Government Recycling Modernisation Fund over four years (matched by industry and states to yield over $1 billion of total investment). Federal RMF streams have already financed hundreds of projects across glass, plastics, tyres, paper, cardboard, organics and hazardous waste. By combining Round 5 grants with federal RMF awards—where eligible—Victorian applicants can stack funding to cover a greater share of capital costs.

Strategic Benefits and Next Steps

Securing equipment upgrades now will enable recyclers to:

• Increase throughput on existing lines and reduce bottlenecks for flexible plastics.

• Produce higher-quality recyclate*, commanding better prices in domestic markets.

• Ensure compliance with Australia’s waste-export ban and emerging recycled-content mandates.

• Reduce carbon footprint by processing more material locally and cutting freight distances.

To move forward:

1. Review the Round 5 Information Bulletin for detailed Q&As on budget, eligibility and process.

2. Contact Sustainability Victoria or your local Regional Development Victoria office for permit guidance.

3. Plan your project timeline around equipment lead times and install windows.

4. Prepare and lodge your application in SmartyGrants before the 12 May deadline.

Victoria’s recycling infrastructure is at a crossroads. With $2.72 million now available for cutting-edge plastics processing, this funding round offers a critical boost for organisations ready to invest in tomorrow’s circular-economy assets. Act quickly to secure co-funding, upgrade your operations and help Victoria meet its 2030 recovery targets.

*is the material recovered from waste streams after it’s been collected, sorted and processed—basically recycled feedstock (pellets, flakes or powder) ready to be remanufactured into new products.