The audit would assess whether the award of funding under the Modern Manufacturing Initiative was effective and consistent with the Commonwealth Grants Rules and Guidelines.

Established in the 2020–21 Budget, the $1.3 billion Modern Manufacturing Initiative aims to stimulate business investment in the manufacturing sector by addressing barriers to scale and competitiveness for Australian manufacturers. Funding is awarded via an open, competitive process under three streams: the Manufacturing Translation Stream; Manufacturing Integration Stream and Manufacturing Collaboration Stream. Funding is targeted at supporting projects within the six National Manufacturing Priorities: resources technology and critical minerals processing; food and beverage; medical products; recycling and clean energy; defence; and space. The Modern Manufacturing Initiative is the centrepiece of the Modern Manufacturing Strategy, which is the Australian Government’s action plan to develop manufacturing to deliver positive economic outcomes and create jobs.