NSW opens $3.8 million in grants to support modern construction

Applications are now open for two NSW Government grant programs worth almost $4 million, supporting modern methods of construction, prefabrication and housing innovation across the state.

The NSW Government has opened applications for two grant programs aimed at accelerating the adoption of modern methods of construction (MMC), with almost $4 million available to support innovation across the state’s housing sector. (main pic: Green Timber Technology’s Putney Wharf kit-of-parts display home.)

The combined investment is designed to encourage manufacturers, technology providers and small-to-medium enterprises to develop, test and commercialise new approaches to housing delivery, particularly for medium and high-rise projects.

The initiative forms part of the Minns Government’s broader strategy to improve housing productivity and increase the supply of high-quality homes by supporting the uptake of prefabrication, modular construction and other advanced building systems.

Funding targets manufacturers and housing innovation
The Housing Innovation in Construction Fund will provide $2 million in co-contribution grants ranging from $20,000 to $150,000. The funding is available to commercially established manufacturers undertaking engineering feasibility studies and compliance assessments to adapt MMC products and systems for use in NSW’s mid and high-rise residential market.

Applicants will be required to contribute at least 50 per cent of total project costs.

A further $1.8 million has been allocated to the Housing Innovation Network Grants Program, which offers competitive grants of up to $250,000 for pilot projects delivered in partnership with Homes NSW.

The program is aimed at small and medium-sized enterprises developing innovative building products, digital technologies, construction materials or service models that can be trialled within public housing projects. Successful pilots are expected to operate for up to 12 months from late 2026 through 2027.

The grants program will also include workshops, networking opportunities and industry learning events designed to strengthen collaboration and capability across the housing and construction sectors.

Broader MMC reform agenda
The funding complements several other NSW Government initiatives to expand MMC across the state. These include plans to establish a large-scale prefabrication manufacturing facility through partnerships with local and international industry, the proposed Building Bill 2026, which introduces a modern regulatory framework for MMC, and a $32.3 million investment in the 2026–27 NSW Budget to modernise the building approvals system and trial artificial intelligence to streamline licence processing.

Minister for Housing Rose Jackson said the programs would help expand the use of modern construction techniques to deliver more homes sooner.

Minister for Building, Industry and Trade, Innovation, Science and Technology Anoulack Chanthivong said the funding would support research, collaboration and innovation while complementing the state’s proposed building reforms.

Find the Housing Innovation in Construction Fund HERE