The Morrison Government understands that resilient supply chains underpin Australia’s prosperity, resilience and national security.
Amid the ongoing effects of the pandemic, war in Europe, natural disasters and rising geopolitical tensions, the Morrison Government is acting to secure resilient supply chains for Australia.
Our expanded Supply Chain Resilience Initiative, backed by an investment of $324 million, underpins Australia’s prosperity, resilience and national security.
We will invest $15 million in a monitoring support mechanism, ensuring Australia is better able to forecast upcoming shocks to our supply chain systems.
This funding includes $4 million to enhance CSIRO’s Transport Network Strategic Investment Tool (TraNSIT) to model critical domestic transport supply chains, backing in the Morrison Government’s record $120 billion investment in infrastructure including essential projects such as the Inland Rail and Melbourne and Brisbane Intermodals.
Australia’s Chief Scientist will also be commissioned to develop, in consultation with researchers and industry, a Strategic National Plan for Semiconductors to address current and future supply.
As part of the launch of our supply chain resilience policy, the Morrison Government will also invest more than $27 million for 18 projects under round two of the Supply Chain Resilience Initiative. The funding will support projects that secure Australia’s supply chains through the local manufacture of semiconductors that drive our tech devices and water treatment chemicals that keep our water clean.
Under the Modern Manufacturing Initiative, the Morrison Government will also provide $53 million to design and construct a state-of-the-art animal health vaccine research and manufacturing facility, set up an Australian Animal Health and Manufacturing Innovation Hub and ensure supply of vital animal health products.
Prime Minister Scott Morrison said these investments were a crucial part of the Government’s plan to secure Australia’s economic recovery and build a stronger future.
“Securing our supply chains is a fundamental part of keeping Australia stronger and more secure,” the Prime Minister said.
“The strength of our supply chains matter because they affect every single part of our economy.
“We make things in Australia and we make them well – our supply chains are the backbone of our manufacturing industry and that’s why my Government will always invest in strengthening them.”
Minister for Industry, Energy and Emissions Reduction Angus Taylor said the Morrison Government was working with Australian businesses to address supply chain vulnerabilities and ensure that critical services and supplies are maintained.
“The world has become a more uncertain, less stable place – our geopolitical landscape is rapidly evolving,” Minister Taylor said.
“The COVID-19 pandemic, war in Ukraine and managing rising trade tensions with China have showed us the importance of our supply chains and having manufacturing capability here at home.
“Our investments not only shore up our supply chain resilience, but they also build our resilience to future shocks.”
Further details of investments:
$15 million for a Supply Chain Monitoring Support
- $4.3 million to enhance the CSIRO Transport Network Strategic Investment Tool (TraNSIT) to model domestic transport supply chains identified as critical and develop resiliency metrics and a dynamic scenario planning capability with data on domestic supply chain logistics.
- $1.3 million to commission the Chief Scientist to develop a Strategic National Plan for Semiconductors to address current and future supply.
- $10 million to better map and monitor critical supply chains and proactively identify vulnerabilities before they arise, by increasing the capacity of the CSIRO, the Office of Supply Chain Resilience and the Department of Industry, Science, Energy and Resources to provide the ‘early warning mechanisms’ for emerging supply chain issues.
$27.3 million for 18 Semiconductor and water treatment chemical SCRI grants
- $27.3 million for 18 successful semiconductor and water treatment chemicals projects under Round 2 of the SCRI to support projects.
- Increase the size of grants available under future rounds of the SCRI (from $2 million to up to $20 million) to support larger, strategically important projects.
$53 million for an Australian Animal Health and Manufacturing Innovation Hub
- $53 million under the MMI Collaboration Stream to Zoetis Australia to design and construct a state of the art animal health vaccine research and manufacturing facility, set up an Australian Animal Health and Manufacturing Innovation Hub and ensure supply of vital animal health products.