The $22 million Community Development Fund fuels early Local Development Strategy (LDS) implementation, sustaining economic transition and fostering new industries.

The $22 million Community Development Fund is designed to support the early implementation of the Local Development Strategy (LDS) program.

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 $22 million available will be through 2 funding streams and will be guided by the following principles:

• each town or community with a Local Development Strategy will receive a dedicated base level of funding for project management support and other activities
• the remainder of the funds will be allocated to particular innovation opportunities identified in Local Development Strategy business cases
• funding will be prioritised for the initiation of economic development and diversification projects
• communities will determine what innovation opportunities should be pursued in their community’s location, taking into account the overall program objectives.

Stream 1

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 for up to $500,000 to fund:

• project management support to co-ordinate and oversee the implementation of the Local Development Strategy. The purpose of the project management support is to:
  • co-ordinate the implementation of the innovation opportunities through each Innovation Working Group established through the Local Development Strategy program
  • provide secretariat support to each Innovation Working Group established through the Local Development Strategy program
  • support each Innovation Working Group to undertake the activities required to implement the innovation opportunity
  • convene community meetings
  • lead the development of a communications strategy and communications collateral for the implementation of the innovation opportunities.
  • provide secretarial support to meetings
• activities to upskill community members to build business expertise and community capability, including:
  • the identification of workforce and business support needs
  • community workforce capability and training
  • grant-writing assistance
  • succession planning and investor/investee advice
  • leadership development
  • business development support.

Stream 2

Funds are available to begin the early implementation of the actions identified in business cases developed through the Local Development Strategy program.

Each town or community may be eligible for up to $2 million in funding to begin the early implementation of actions identified in business cases developed through the Local Development Strategy program for one or more innovation opportunities.

Of the $2 million:

• $500,000 (excluding GST) is dedicated funding to begin implementing one or more innovation opportunity business cases in each eligible town or community (provided the application meets all the necessary conditions)
• The remaining $1.5 million (excluding GST) may be available to each town or community to fund actions identified in innovation opportunity business cases through a contestable process.

The spread of grants across the eligible towns and communities will be considered to ensure a fair allocation.

Those applications that best meet the objectives of the program will be recommended for funding until the available $11 million is expended.

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 town or community’s community organisation that oversees the implementation of the town’s Local Development Strategy.

The types of activities include:

• initial funding for economic development or diversification projects identified through the Local Development Strategy program, including:
  • applied research and development
  • project management support
  • feasibility studies / business cases / funding submissions
  • marketing
  • logistics and supply chain development
• infrastructure improvements identified out of the Local Development Strategy activities, 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:

• projects 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
• projects undertaken by the private sector as a result of a Victorian Government contract
• projects normally funded through Commonwealth, State or local government sources
• projects requiring operational funding from the Victorian Government once completed.

The Community Development Fund is open until 30 June 2026.

Who is eligible?

Stream 1

Applications for this stream of funding will be considered from a business, community or industry group including:

• Local Development Strategy host agency
• a community organisation that oversees the implementation of the Local Development Strategy
  local government authority
• a business and industry cluster or network
• chamber of commerce or business association.

Applications for activities to upskill community members received from organisations other than the community organisation that oversees the implementation of the Local Development Strategy will need the endorsement of that community organisation.

If the Local Development Strategy host agency or the community organisation that oversees the implementation of the Local Development Strategy does not apply for Stream 1 funding, it is expected that the community organisation will endorse any application for project management support.

Stream 2

Applications for Funding Stream 2 will be considered from:

• Private sector businesses
• Business, community and industry groups including:
  • Local Development Strategy host agencies
  • the community organisation that oversees the implementation of the Local Development Strategy
  • local government authorities
  • business and industry clusters and networks
  • chambers of commerce and business associations
  • educational and research organisations

• Applications that involve the provision of enabling infrastructure necessary to activate projects delivering investment and jobs may be considered from:
  • utility and services providers
  • water corporations
  • local government authorities
  • incorporated not-for-profit organisations that operate as a business.

To apply

1. Read the application guidelines carefully to establish the proposed project’s eligibility
2. Read the grant agreement terms and conditions for the funding offered
3. Discuss the proposed project with a Victorian Forestry Plan Community Transition Support Officer who can provide advice on the guidelines:
   • Gippsland - Ruth Fitzclarence, Community Transition Support Officer, 0400 776 040
   • Central Highlands - Yoshi De Wilde, Community Transition Support Officer, 0499 830 051
   • North-east Victoria - Jenny Pena, Community Transition Support Officer, 0400 447 342
4. Call 1800 318 182 or email victorianforestryplan@djpr.vic.gov.au

• Phone: 1800 318 182
• Email: victorianforestryplan@djpr.vic.gov.au