Victorian Circular Economy Recycling Modernisation Fund Round 6: Why This Round Matters
Round 6 of the Victorian Circular Economy Recycling Modernisation Fund (VCE-RMF) is now open, offering meaningful support for recycling and resource recovery businesses planning equipment upgrades or new processing capability.
This round arrives at a key moment. Sustainability Victoria is due to close in June 2026, yet funding remains available to help address long-standing gaps in recovery for materials that are difficult to recycle. For operators with clear plans and available co-funding, this round is worth serious consideration.
What the Fund Supports
The focus of Round 6 is on equipment that improves recovery outcomes for materials with low recycling rates.
Target materials include:
- Soft plastics and agricultural plastics
- E-waste
- Tyres
- Liquid paper packaging
- Textiles
For hard-to-recycle plastics, eligible infrastructure covers most processing stages. This includes sorting, primary processing, secondary sorting and secondary processing. Baling and storage are supported for agricultural plastics.
The emphasis is practical. This funding is aimed at real infrastructure that increases throughput, improves material quality and supports local reuse and manufacturing.
Proof the Funding Works: Recent Plastics Projects in Victoria
Recent investment in Victoria’s plastics recycling sector shows how this type of funding translates into real outcomes.
A combined $4 million government and industry investment is supporting four new projects that will increase plastics recycling capacity by 16,700 tonnes per year, while strengthening local processing capability and creating jobs.
The funded projects include:
- Pact Recycling (Cheltenham), upgrading its bagMUSTER program to recover agricultural bags used for seed, fertiliser and stockfeed
- APR (Dandenong), installing advanced infrared sorting technology (supplied by Telford Smith) to improve separation and recovery of end-of-life soft plastics
- Australian Soft Plastics Recycling (Pakenham), expanding capacity and improving material quality for low-density polyethylene films such as pallet wrap
- RE4ORM (Barnawartha), upgrading facilities to recover low-density plastics for reuse in manufacturing new recycled products
These projects highlight what successful funding applications have in common. Clear equipment upgrades. Measurable capacity gains. Improved output quality. Strong end markets.
They also sit within a broader pipeline of investment. Across Victoria, the Recycling Modernisation Fund is now supporting 27 projects, delivering 328,000 tonnes of added recycling capacity each year, with more than $226 million invested in infrastructure statewide.
How the Funding Works
Under Round 6, funding of up to $500,000 is available per project.
The fund operates on a 1:2 co-contribution basis. This means applicants must contribute twice the grant amount using their own funds. For example, a $500,000 grant requires a $1 million applicant contribution.
Both the grant and the co-contribution must be spent on eligible items only. Costs outside the eligibility scope, such as building works or site expansion, must be funded separately.
That said, additional investment can strengthen an application. Projects that demonstrate scale, long-term impact and clear delivery tend to stand out.
Key Dates and Timing
Round 6 follows an unusual timeline:
- Applications close on 1 July 2026
- Projects must be completed by 30 April 2027
Administration of the fund will transfer to another authority following the closure of Sustainability Victoria. Funding outcomes are expected around September 2026, subject to confirmation.
The delivery window is relatively short. Equipment lead times, installation schedules and commissioning all need to be factored in early.
Why This Round Deserves Attention
The recent $4m plastics investment sends a clear signal. Funding bodies are backing equipment-led projects that improve recovery and support local manufacturing.
For businesses already planning new processing capability, sorting upgrades or capacity expansion, Round 6 can help move projects forward sooner. The key is preparation. Clear scope. Realistic timing. Confirmed co-funding.
How Telford Smith Can Help
If you’re considering an application under Round 6, one of the biggest challenges is confirming whether proposed equipment fits the criteria and whether the project timeline is achievable.
Telford Smith works closely with recycling and resource recovery operators across plastics, e-waste and other hard-to-recycle streams. We can help you assess where new equipment could add value, confirm whether infrastructure is likely to be eligible, and align machinery options with the fund’s requirements.
We also support early planning by providing equipment input, indicative scopes and supplier insights. That early clarity becomes especially valuable when timelines are tight and funding decisions need to be made with confidence.
If you’re weighing up whether to proceed, or want to test an idea before committing to an application, our team is available to talk it through.
Are You Ready
Round 6 of the VCE-RMF builds on a proven funding model that is already delivering results across Victoria. With recent projects showing clear gains in plastics recovery and processing capacity, this round offers a solid opportunity for businesses ready to invest.
If you’re planning upgrades or new processing capability and want to explore whether this funding aligns with your next step, now is the right time to start the conversation.
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