The $22 million Community Development Fund fuels early Local Development Strategy (LDS) implementation, sustaining economic transition and fostering new industries.
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Overview
Open
The $22 million Community Development Fund is designed to support the implementation of opportunities identified by communities in their Local Development Strategy.
It aims to maintain the momentum for the economic transition built up through the Local Development Strategy program and continue the development of new industries and opportunities.
Allocation of the funding available will be through two funding streams.
The Community Development Fund is open until 30 June 2026.
Funding streams
The fund is being delivered as a contestable fund, where projects are assessed against merit criteria to identify those projects that can be supported.
The fund will use two funding streams.
Funds are available for project management support and to upskill community members to build business expertise and community capability.
Each town or community is eligible to apply for up to $500,000 to fund:
project management support including:
co-ordinating the implementation and delivery of each Innovation Working Group established through the Local Development Strategy program
implementing enabling activities identified in the Local Development Strategy
providing administration support to each Innovation Working Group and the Local Development Strategy Leadership Group
convening community meetings supporting the Local Development Strategy
leading and delivering a communications strategy for the Local Development Strategy.
upskilling community members, including:
the identification of workforce and business support needs
building business expertise, capability and resilience
community workforce capability and training
grant-writing assistance
succession planning and investor/investee advice
leadership development
business development support.
Activities that will generally not be funded through Stream 1 include:
funding for project management support resources which could reasonably be expected to be the responsibility of the Local Development Strategy host agency
requests for retrospective funding where activities have been completed or have commenced prior to receiving funding approval
purchase of property or vehicles
activities establishing expectations of ongoing funding from the Victorian Government
activities undertaken by the private sector as a result of a Victorian Government contract.
Funds are available to progress opportunities for diversification identified through the Local Development Strategy program.
Each of the 11 towns or communities may be eligible to access up to $2 million in funding comprising:
up to $500,000 (excluding GST) of guaranteed funding (provided the applications meet departmental requirements, eligibility and assessment criteria)
up to $1.5 million (excluding GST) of competitive funding once the community's guaranteed funding is exhausted. This funding will be awarded on a competitive basis where a grant application is selected on merit following assessment against a set of criteria.
Those applications that best meet the objective of the program will be recommended for funding.
The spread of grants across the eligible towns and communities will be considered to ensure a fair allocation.
Eligible activities
Projects that may be funded through Funding Stream 2 are those that:
are aligned to the outcomes of the community's Local Development Strategy
are endorsed by the local community organisation that oversees the implementation of the town's Local Development Strategy.
The types of activities include:
initial funding to support innovation opportunities identified through the Local Development Strategy, and developed by the Innovation Working Groups, including:
applied research and development
project activity support
pilot projects/feasibility studies / business cases / funding submissions
marketing
logistics and supply chain development.
infrastructure improvements identified in the Local Development Strategy, for example:
technology, plant and equipment, and communications
new or upgraded infrastructure including utility or service connections
Activities that will generally not be funded include:
activities primarily to meet regulatory requirements
requests for retrospective funding where projects have been completed or have commenced prior to receiving funding approval
purchase of property or vehicles
use of funding for political campaigning or advocacy activities for political parties
activities undertaken by the private sector as a result of a Victorian Government contract
activities normally funded through Commonwealth, State or local government sources
activities requiring operational funding from the Victorian Government once completed.
Who is eligible?
Funding Streams 1 and 2
Applications for both funding streams will be considered from a community or industry group including:
an incorporated community organisation
local government authority
a business and industry cluster or network
non-profit organisation
chamber of commerce, business association, education and research organisations.
Funding Stream 2 only
Applications for Funding Stream 2 will also be considered from:
Private sector businesses
Additionally, where applications under Stream 2 are for infrastructure projects that will create investment and jobs, applications may be considered from:
utility and services providers
water corporations
local government authorities
incorporated not-for-profit organisations that operate as a business.
How to apply
Ensure eligibility
Read the application guidelines carefully to establish the proposed project’s eligibility
Read the grant agreement terms and conditions for the funding offered
Discuss the proposed project with a Community Transition Coordinator who can provide advice on the guidelines:
East Gippsland – Shona Sekene, Community Transition Coordinator, 0459 902 064
Wellington and Baw Baw Shires – Emma Birchall, Community Transition Coordinator, 0474 775 458
North-east Victoria – Amanda Farrelly, Community Transition Coordinator, 0427 423 791
Once a DEECA Community Transition Coordinator has confirmed the project's eligibility to progress, a link to the Expression of Interest form will be sent to the applicant
Stream 1 applications do not require an Expression of Interest to be submitted and can progress directly to the application stage.
Prepare and submit an application
Once eligibility is confirmed and an Expression of Interest accepted, potential applicants will be provided a link to submit an application by a Community Transition Coordinator.
Applications should clearly and succinctly describe the project by detailing:
the proposed activity or project objective and outcomes
the proposed activity or project plan, including timelines, deliverables and governance arrangements
the demonstrated community support for the proposed activity or project
project budget
how the proposed activity or project aligns with the Local Development Strategy
resource requirements
potential proposed activity or project risks and how they will be managed
evidence of endorsement by the Local Development Strategy Leadership Group, or community endorsement if a leadership group has not been established
evidence of any relevant permits or approvals required to deliver the proposed activity or project.
For grants over $50,000 (excluding GST), applicants (except for exempt organisations such as Local Government Authorities and universities) will be asked to provide copies of annual reports and audited financial statements (audited profit and loss statements and balance sheets) covering three years before their application. This helps the Department to assess the financial viability of the applicant and their ability to manage and complete the project.
The DEECA Community Transition Coordinator can assist applicants to understand the documents required and advise on other options if they cannot provide annual reports and audited financial statements.
Key dates
Round 2 Expression of Interest close: Monday 14 April 2025
The Community Development Fund supports the implementation of economic transition and diversification plans developed through the Local Development Strategy program.
The Local Development Strategy program supports eleven towns and communities that are impacted by forestry transition to undertake community-led economic diversification planning to support their economies’ transition and create jobs in new, sustainable industries.
Eligible organisations operating in or near the following towns and communities with a Local Development Strategy can apply:
The Forestry Transition Fund is now open and will provide grants to grow businesses and create jobs in affected communities.
The Community Development Fund is divided into funding rounds to ensure that all communities have fair opportunity to apply for grants. Introducing funding rounds will prevent the fund being exhausted early and enable later starting communities access to funds in later rounds.
The impacts of local job losses as a result of native forestry transition are being factored into the assessment of applications in the competitive funding pool for Community Development Fund Stream 2.
Applications must still meet the department's requirements and score highly against the assessment criteria to be awarded funding.
The DEECA Community Transition Coordinator is the primary contact for advice about the application process, DEECA's requirements for the application and the broader Forestry Transition Program.
The Local Development Strategy Project Manager and host agency are responsible for the overall development and delivery of the community's transition plan. It is expected that the Project Manager and host agency are aware of all details of the application and support its submission.
