Victorian Freight Decarbonisation Co-Investment Program

What is the Victorian Freight Decarbonisation Co-Investment Program?

The Victorian Freight Decarbonisation Co-Investment Program supports small and medium freight operators in transitioning to low and zero-emission vehicles.

Funded through Victoria Delivers: Victorian Freight Plan 2025–2030, the program provides $8 million over two years through a co-investment model to help industry:

• transition to low or zero-emission freight vehicles
• address uncertainty around vehicle range, charging infrastructure and whole-of-life costs
• trial new technologies and business models
• build industry knowledge about freight decarbonisation

The full Program Guidelines available below.

Why is freight decarbonisation important?

Victoria's freight industry:

• employs around 240,000 people
• moves approximately 440 million tonnes of freight annually (expected to grow to 908 million tonnes by 2050–51)

Freight transport contributes significantly to greenhouse gas emissions, which impact climate, health, and supply chains. Decarbonising freight will:

• improve sustainability and health outcomes
• support climate targets
• strengthen long-term industry resilience
• encourage innovation and private sector investment

How much funding is available?

Individual grants of up to $300,000 (excluding GST) are available to eligible small to medium-sized freight operators.

What can the grant funding be used for?

Eligible initiatives include:

• capital costs for purchase or lease of low or zero-emission freight vehicles
• vehicle fit-outs for newly purchased or leased vehicles
• infrastructure to support low or zero-emission vehicles (e.g. electric chargers and required behind-the-meter site upgrades)
• charging or refueling costs for new low or zeroemission vehicles
• trials of alternative fuels (e.g. renewable diesel, biodiesel)
• technology and business model innovation (e.g. moving freight from road to rail)

Other proposals that contribute to program objectives (subject to DTP discretion)

Who is eligible to apply?

The program is open to small to medium land freight operators operating in Victoria.

This typically includes businesses that:

• move goods for clients from one location to another
• lease or hire trucks with drivers for freight transport
• provide freight forwarding and logistics services (road and/or rail)
• transport bulk, packaged or consolidated freight
• provide courier or waste collection services

Eligible businesses must:

• hold an ABN (held since 30 June 2022)
• be registered and operating in Victoria
• employ 200 full-time equivalent employees or fewer
• not be insolvent or have directors who are undischarged bankrupt
• be able to enter into a grant agreement

Eligible ANZSIC codes include:

• 4610 Road Freight Transport
• 4710 Rail Freight Transport
• 5292 Freight Forwarding Services
• 5299 Other Transport Support Services
• 6619 Other Motor Vehicle and Transport Equipment Rental and Hiring
• 5102 Courier Pick-up and Delivery Services
• 2911 Solid Waste Collection Services
• 2919 Other Waste Collection Services

Other ANZSIC codes may be considered at DTP’s discretion.

Who is not eligible?

The following cannot apply:

• Government entities
• Overseas organisations
• Businesses with ABNs registered interstate
• Businesses employing more than 200 FTE employees
• Businesses not engaged in land freight operations
• Passenger transport services
• Insolvent businesses or directors who are undischarged bankrupt

What is the application process?

Step 1: Expression of Interest (EOI)

You must first submit an Expression of Interest (EOI) before being invited to apply.

The EOI helps Freight Victoria:

• confirm scale of interest
• assess eligibility
• understand proposed project scope

To submit an EOI:

Complete the online EOI form via the program website

Provide business details and a brief outline of:

• the proposed project
• expected outcomes
• timeline
• funding request

Only shortlisted applicants will be invited to submit a full application.

How long do funded projects have to be completed?

Projects must be completed within 18 months of executing the grant agreement.

Extensions may be negotiated (for example, infrastructure projects) at the discretion of the Department of Transport and Planning (DTP).

What are the Program objectives?

Short-term objectives

• Support the land freight industry to decarbonise
• Collect and share insights on opportunities and challenges in transitioning

Long-term outcomes

• Increase adoption of zero-emission freight vehicles
• Improve industry understanding of decarbonisation
• Reduce freight emissions across Victoria
• Strengthen innovation in freight operations

Do I need to wait until the grant agreement is signed before starting my project?

Yes. Projects must not begin until a grant agreement has been signed by both the successful applicant and the Victorian Government. Any work started before the grant agreement is signed will not be funded.

Can I submit more than one EOI?

Businesses may submit more than one EOI. Each project will be assessed separately and must independently meet eligibility and co‑contribution requirements. While they can submit two separate EOIs (e.g. one for EV and one for dual fuel), they can only be successful with one.

Can I partner with another business on a project?

Yes. Partnerships or consortia are allowed, but one eligible Victorian Freight Operator must be the lead applicant and enter into the grant agreement.

Are second‑hand vehicles eligible?

Second‑hand low or zero‑emissions vehicles may be eligible if they meet Australian Design Rules, have a Victorian garage address, and meet the program’s commercial‑use requirements.

Can infrastructure be installed at a rented site?

Yes, as long as the applicant can demonstrate the right to use the site for the duration of the project (e.g., lease agreement or owner consent).

Are light commercial vehicles eligible?

Light vehicles (less than 4.5 tonnes Gross Vehicle Mass) may be eligible if they are used for commercial freight operations and meet low‑ or zero‑emissions criteria.

Do I need to obtain applicable permits before I apply?

It is recommended that the applicant obtain necessary permits before submitting a formal application.

Is solar generation or battery storage eligible?

Projects that directly support charging low‑ or zero‑emission freight vehicles may be eligible if they form part of a broader decarbonisation project.

How will charging or refuelling costs be verified?

Applicants must track and report eligible charging or refuelling costs and may be asked to provide invoices, meter data, or fuel records as part of project reporting.

If I lease a vehicle, who must hold the lease?

The applicant's business must hold the lease directly. Sub‑leases or vehicles leased by third parties are not ineligible.

Is ongoing maintenance covered?

No. Routine operating or maintenance costs are not eligible for funding.

What happens if my project is delayed?

Extensions may be considered for infrastructure‑related delays, but only by negotiation with the Department of Transport and Planning. Extensions are not guaranteed.

My businesses financial statements are not audited, what can I submit instead?

If audited financial reports are not available, financial statements must be prepared by a registered accountant listed with the Tax Practitioners Board (TPB).

My primary business is not land freight transport, can I apply?

Businesses whose primary activity is not freight may apply if they are substantially involved in road and/or rail freight transport activities, either directly or through their operations.

Application process

What are the key dates for the program?

• applications open (by invitation only): 10am, Monday 1 June 2026
• applications close: 4pm, Monday 6 July 2026
• application assessments: July–September 2026
• notification of outcomes: October 2026
• contracting: From October 2026
• project commencement: From November 2026
• latest possible project completion: 30 June 2028*

*Unless negotiated with and at the discretion of the Department of Transport and Planning (DTP)

Who do I contact to discuss the application process and requirements for my application?

For program enquiries (e.g., eligibility, funding, project scope), please email cleanair@transport.vic.gov.au

For technical support (e.g., Expression of Interest or Application portal issues), please email vic.freight@grants.vic.gov.au

How can I submit an application?

Applications must be submitted via the DJSIR Grants Portal.

Applications close at 4pm, Monday 6 July 2026.

Late applications will not be accepted.

Can I apply using a different ABN or on behalf of another business?

No, only businesses invited to apply can submit an application.

Can I partner with another business on a project?

Yes. Partnerships or consortia are allowed, but one eligible Victorian freight operator must be the lead applicant and enter into the grant agreement.

The lead applicant should be the same as the one who submitted the Expression of Interest.

Can I apply if my business uses subcontractors?

Yes. A freight operator business that uses subcontractors is eligible to apply for the grant.

Brokers applying on behalf of subcontractors are not eligible.

Can I apply for a different project than the one I submitted in the Expression of Interest?

The project purchases and activities may have slightly evolved since the EOI submission, but the project outcome must remain the same. For example, changing the brand of truck to be purchased due to market availability would not impact your application’s assessment.

However, significant changes to the application, such as changing from the purchase of heavy vehicles to cargo vans may impact the success of your application.

It’s recommended that you discuss any major changes with DTP before submitting an application. Please email cleanair@transport.vic.gov.au

Can I request a different amount from the one we requested in our Expression of Interest?

Yes. Any funding information in the application will be treated as your final submission (over and above what was indicated in the EOI).

Can my application indicate a different level of co-contribution compared to what we indicated in our Expression of Interest?

Yes. You can change your level of co-contribution from what was indicated in your EOI, provided you still meet the minimum requirement of a 1:5 ratio. Higher levels of co-contribution will also be looked upon favourably during assessment

Any information in the application will be treated as your final submission (over and above what was indicated in the EOI).

Does receiving a successful Expression of Interest guarantee a successful outcome for the application?

No. Applicants with a successful Expression of Interest outcome will be invited to submit a formal application.

The application will be assessed against the assessment criteria as shown in section 4.2.1 of the program guidelines and awarded funding through a competitive merit-based process.

What project documents do I need to submit with my application?

The documents required depends on the type of project being delivered.

• evidence of cash co-contribution funding (mandatory)
• WorkCover Certificate of Currency (mandatory, if applicable)
• vehicle registration for existing vehicles to be replaced
• evidence of land ownership/tenure where the project activity will occur and/or the home garage site for heavy vehicles (mandatory)
• project plan (mandatory for equipment and infrastructure projects), and
• other project documentation such as project plans, schematics, permit applications (as required)

Further information can be found in section 4.1.1 of the Program Guidelines.

What financial documents do I need to include with my application?

Audited Financial Reports for the past three financial years (2022-23, 2023-24 and 2024-25 financial years), including

• profit and loss statement
• balance sheet(s)
• cash flow statement
• Directors’ Report and Declaration
• notes to the accounts (if applicable)
• where the audited or accountant-prepared financials for the most recent reporting period is more than 6 months, the following are required:
  • profit and loss statement and a balance sheet
  • in case of public listed corporations, half-yearly financial report
• [optional] Profit & Loss and Cashflow Projections, using the supplied template, to be prepared or verified by an Accountant for the following periods:
  • 1 July 2025 – 30 June 2026
  • 1 July 2026 – 30 June 2027
  • 1 July 2027 – 30 June 2028
    Or
  • 1 January 2026 – 31 December 2026
  • 1 January 2027 – 31 December 2027
  • 1 January 2028 – 31 December 2028

Note:

• If audited financial reports are not available, financial statements must be prepared by a registered accountant listed with the Tax Practitioners Board (TPB). Applicants will be contacted directly and advised of the specific requirements
• Comparative figures embedded within another final report are not accepted.

What is an audited financial statement?

An audit is a detailed process that provides a high level of assurance to the users of financial reports. An auditor must follow auditing standards to identify material misstatements and to reduce the risk of fraud.

The requirement to have financial statements to be audited depends on the size and type of business

My business’s financial statements are not audited. What do I submit instead?

If audited financial reports are not available, financial statements must be prepared by a registered accountant listed with the Tax Practitioners Board public register(opens in a new window).

Where can I find a financial statements template?

Business Victoria has a financial statements template available on the Business Victoria website.

Where can I find a cash flow forecasting template?

Business Victoria has a cash flow forecasting template available on the Business Victoria website.

Where can I find my Certificate of Currency for WorkSafe?

You can request a certificate as evidence that you or another business has current WorkCover insurance.

For more information, please visit the WorkSafe Victoria website.

How should I name the files to be attached to my application?

Please ensure all files are named using the following format:
Document Type - Year or date period - Business Name

For example:
Financial Report - 2022-23 - Business Name
WorkCover Certificate - 1.8.2025-1.8.2026 - Business Name

I have a document that exceeds the 5MB limit in the application form. How do I submit the attachment?

Please email any attachments larger than 5MB by emailing vic.freight@grants.vic.gov.au

What is the deadline for completing funded projects?

Projects must be completed within 18 months of executing the grant agreement.

Extensions may be negotiated (e.g., for infrastructure projects) at DTP's discretion.

Am I allowed to seek and utilise other grant funding from the Commonwealth or State governments (i.e. ARENA grants)?

Yes, you may seek more than one grant opportunity. However, your grant funding applications must be for different projects and/or expenses.

For example, if you are seeking support from the VFDC program for electric trucks, you should seek funding from other grant programs for other decarbonisation expenses, such as charging or charging infrastructure.

Can I apply for a different project than the one I submitted in the Expression of Interest?

Significant changes to the applicant may impact the success of your application. It’s expected that regardless of the purchases and activities as part of your project, the project outcomes will remain the same.

It’s recommended that you discuss any major changes with DTP before submitting an application.

Do I need quotes from suppliers before I submit the application?

It’s recommended but not mandatory that you provide quotes from suppliers. Projects with supplier quotes demonstrating project readiness will be prioritised.

Do I need to obtain permits before submitting my application?

It’s recommended that the applicant obtain necessary permits before submitting a formal application. It’s the applicant’s responsibility to ensure they have obtained all necessary permits.

Project eligibility

Are second hand vehicles eligible?

Second hand low or zero emissions vehicles may be eligible if they meet Australian Design Rules, have a Victorian garage address, and meet the program’s commercial use requirements.

Are retrofits on existing vehicles eligible or does the vehicle need to be new?

Yes, retrofits that support decarbonisation are eligible.

Can infrastructure be installed at a rented site?

Yes. The applicant will be required to demonstrate the right to use the site for the duration of the project (e.g. lease agreement and owner consent).

Are light commercial vehicles eligible?

Light vehicles (with a Gross Vehicle Mass of less than 4.5 tonnes) may be eligible if they are used for commercial freight operations and meet the low or zero-emissions criteria.

Are solar generation or battery storage eligible?

Yes, if they form part of a broader decarbonisation project, projects that directly support the charging of low or zero-emission freight vehicles may be eligible.

If I lease a vehicle, who must hold the lease?

The applicant's business must hold the lease directly. Sub leases or vehicles leased by third parties are not ineligible.

Is ongoing maintenance covered?

No. Routine operating or maintenance costs are not eligible for funding.

Am I required to replace my existing vehicles?

No, you are not required to replace your existing fleet with the vehicles purchased through this program.

However, your program will be prioritised if you indicate that you are fully or partially replacing existing ICE vehicles.

If you indicate that you intend to replace vehicles in your current fleet during the application process, you will be expected to show evidence of this as part of your grant agreement milestones.

Assessment process and outcomes

How can I check the status of my application?

Your application status is located on the home page of the DJSIR Grants Portal. You will need to log in to access the Grants portal dashboard.

Application outcomes are expected to be provided in October 2026. Any changes to this timeframe will be communicated to applicants.

How will the application be assessed?

Applications will be reviewed against the assessment criteria and undergo due diligence checks, including financial risk assessments.

Eligible applications will be assessed by an assessment panel composed of department staff. Applications will be scored against the assessment criteria to rank projects.

Who can enter into a grant agreement on behalf of my business?

A person (or persons) who has the authority to enter into an agreement.

The number of signatories will depend on the type of business. Requirements will be communicated to successful grant recipients during contract negotiations.

Do I need to wait for the grant agreement to be signed before starting my project?

Yes. Projects must not begin until a grant agreement has been signed by both the successful applicant and the Victorian Government.

Any work started before the grant agreement is executed will not be funded.

What should I do if my project is delayed?

Extensions may be considered for infrastructure related delays, but only by negotiation with DTP. Extensions are not guaranteed.

Reporting requirements

What reporting will be required if my application is approved?

The following reports will be a mandatory requirement

• Share project data
• Track costs, such as for fuel, charging
• Participate in evaluation activities

Specific reporting requirements will be set out in the funding agreement.

Do I need to share my data with the Victorian Government?

Yes. Successful applicants must participate in monitoring and evaluation activities, including providing project data and completing surveys to help assess program outcomes.

How are payments made?

DTP will negotiate a grant agreement with each successful grantee, specific to their individual project.

As part of that negotiation, milestones will be agreed between both parties.

While the milestones will be unique to each project, it is anticipated that all agreements will split payments across several milestones tied to both the successful completion of project activities and the submission of required data to the department.

Who do I contact to discuss the application process and requirements for my application?

For program enquiries (e.g., eligibility, funding, project scope), please email cleanair@transport.vic.gov.au

For technical support (e.g., Expression of Interest or Application portal issues), please email vic.freight@grants.vic.gov.au

What is the maximum amount of funding I can request?

Applicants can request grant funding of up to $300,000 (excluding GST). Applications were sent to successful EOIs by invite-only.

What is the minimum required cash co-contribution?

The minimum funding ratio between the applicant's co-contribution and the government grant is 1:5.

For example, applicants can request a grant of $300,000 (excluding GST) only if they are prepared to co-contribute at least $60,000 (excluding GST) towards their project.

In-kind contributions cannot form part of the required co-contribution. An in-kind contribution is a contribution of a good or a service other than cash.

Funds from other local, state and Federal Government programs cannot be included in applicants’ co-contributions.

How is GST treated?

The grant funds provided, the expenses you claim for under those funds, and your co-contribution amount are all GST exclusive. When you propose your budget in section 8 of the application form, all of the amounts and evidence presented must exclude GST.

If you are successful in obtaining a grant, when you reach the point of claiming your milestone payments, the invoices and expenses you claim for should also exclude the GST paid.

Please refer to the table below for clarity.

How can I submit an application?

Applications must be submitted via the DJSIR Grants Portal(opens in a new window). Applications were sent to successful EOIs by invite-only.

How can I submit an application?

Applications must be submitted via the DJSIR Grants Portal.

Applications close at 4pm, Monday 6 July 2026.

Late applications will not be accepted.

Can I apply using a different ABN or on behalf of another business?

No, only businesses invited to apply can submit an application.

Can I partner with another business on a project?

Yes. Partnerships or consortia are allowed, but one eligible Victorian freight operator must be the lead applicant and enter into the grant agreement.

The lead applicant should be the same as the one who submitted the Expression of Interest.

Can I apply if my business uses subcontractors?

Yes. A freight operator business that uses subcontractors is eligible to apply for the grant.

Brokers applying on behalf of subcontractors are not eligible.

Does receiving a successful Expression of Interest guarantee a successful outcome for the application?

No. Applicants with a successful Expression of Interest outcome will be invited to submit a formal application.

The application will be assessed against the assessment criteria as shown in section 4.2.1 of the program guidelines and awarded funding through a competitive merit-based process.

What project documentation do I need to submit with my application?

The documentation required depends on the type of project being delivered.

• evidence of cash co-contribution funding (mandatory)
• WorkCover Certificate of Currency (mandatory, if applicable)
• vehicle registration for existing vehicles to be replaced
• evidence of land ownership/tenure where the project activity will occur and/or the home garage site for heavy vehicles (mandatory)
• project plan (mandatory for equipment and infrastructure projects)
• other project documentation such as project plans, schematics, permit applications (as required)

Further information can be found in section 4.1.1 of the Program Guidelines.

What financial documents do I need to include with my application?

Audited Financial Reports for the past three financial years (2022-23, 2023-24 and 2024-25 financial years), including:

• profit and loss statement
• balance sheet(s)
• cash flow statement
• Directors’ Report and Declaration
• notes to the accounts (if applicable)
• where the audited or accountant-prepared financials for the most recent reporting period is more than 6 months, the following are required:
  • profit and loss statement and a balance sheet
  • in case of public listed corporations, half-yearly financial report
• [optional] Profit & Loss and Cashflow Projections, using the supplied template, to be prepared or verified by an Accountant for the following periods:
  • 1 July 2025 – 30 June 2026
  • 1 July 2026 – 30 June 2027
  • 1 July 2027 – 30 June 2028
    Or
  • 1 January 2026 – 31 December 2026
  • 1 January 2027 – 31 December 2027
  • 1 January 2028 – 31 December 2028

Note:

• If audited financial reports are not available, financial statements must be prepared by a registered accountant listed with the Tax Practitioners Board (TPB). Applicants will be contacted directly and advised of the specific requirements
• Comparative figures embedded within another final report are not accepted.

What is an audited financial statement?

An audit is a detailed process that provides a high level of assurance to the users of financial reports.

The objective of an audit of a financial report is to enable the auditor to express an opinion whether the financial report is prepared, in all material respects, in accordance with an applicable financial reporting framework.

An auditor is required to conduct audit procedures in accordance with the auditing standards to detect material misstatements and to carry out specific procedures to reduce fraud risk.

The requirement for financial statements to be audited depends on the size and type of your business.

My business’s financial statements are not audited. What do I submit instead?

If audited financial reports are not available, financial statements must be prepared by a registered accountant listed with the Tax Practitioners Board public register.

Where can I find my Certificate of Currency for WorkSafe?

You can request a certificate as evidence that you or another business has current WorkCover insurance.

For more information, please visit the WorkSafe Victoria website.

How should I name the files to be attached to my application?

Please ensure all files are named using the following format:
Document Type - Year or date period - Business Name

For example:
Financial Report - 2022-23 - Business Name
WorkCover Certificate - 1.8.2025-1.8.2026 - Business Name

I have a document that exceeds the 5MB limit in the application form. How do I submit the attachment?

Please email any attachments larger than 5MB by emailing vic.freight@grants.vic.gov.au

Can I apply for a different project than the one I submitted in the Expression of Interest?

Significant changes to the applicant may impact the success of your application. It’s expected that regardless of the purchases and activities as part of your project, the project outcomes will remain the same.

It’s recommended that you discuss any major changes with DTP before submitting an application.

Do I need quotes from suppliers before I submit the application?

It’s recommended but not mandatory that you provide quotes from suppliers. Projects with supplier quotes demonstrating project readiness will be prioritised.

Do I need to obtain permits before submitting my application?

It’s recommended that the applicant obtain necessary permits before submitting a formal application. It’s the applicant’s responsibility to ensure they have obtained all necessary permits.

Project eligibility

Are second hand vehicles eligible?

Second hand low or zero emissions vehicles may be eligible if they meet Australian Design Rules, have a Victorian garage address, and meet the program’s commercial use requirements.

Can infrastructure be installed at a rented site?

Yes. The applicant will be required to demonstrate the right to use the site for the duration of the project (e.g. lease agreement and owner consent).

Are light commercial vehicles eligible?

Light vehicles (with a Gross Vehicle Mass of less than 4.5 tonnes) may be eligible if they are used for commercial freight operations and meet the low or zero-emissions criteria.

Are solar generation or battery storage eligible?

Yes, if they form part of a broader decarbonisation project, projects that directly support the charging of low or zero-emission freight vehicles may be eligible.

If I lease a vehicle, who must hold the lease?

The applicant's business must hold the lease directly. Sub leases or vehicles leased by third parties are not ineligible.

Is ongoing maintenance covered?

No. Routine operating or maintenance costs are not eligible for funding.

Assessment process and outcomes

How can I check the status of my application?

Your application status is located on the home page of the DJSIR Grants Portal. You will need to log in to access the Grants portal dashboard.

Application outcomes are expected to be provided in October 2026. Any changes to this timeframe will be communicated to applicants.

How will the application be assessed?

Applications will be reviewed against the assessment criteria and undergo due diligence checks, including financial risk assessments.

Eligible applications will be assessed by an assessment panel composed of department staff. Applications will be scored against the assessment criteria to rank projects.

Who can enter into a grant agreement on behalf of my business?

A person (or persons) who has the authority to enter into an agreement.

The number of signatories will depend on the type of business. Requirements will be communicated to successful grant recipients during contract negotiations.

Do I need to wait for the grant agreement to be signed before starting my project?

Yes. Projects must not begin until a grant agreement has been signed by both the successful applicant and the Victorian Government.

Any work started before the grant agreement is executed will not be funded.

What should I do if my project is delayed?

Extensions may be considered for infrastructure related delays, but only by negotiation with DTP. Extensions are not guaranteed.

Reporting requirements

What reporting will be required if my application is approved?

The following reports will be a mandatory requirement

• Share project data
• Track costs, such as for fuel, charging
• Participate in evaluation activities

Specific reporting requirements will be set out in the funding agreement.

Do I need to share my data with the Victorian Government?

Yes. Successful applicants must participate in monitoring and evaluation activities, including providing project data and completing surveys to help assess program outcomes.

Additional application documents

(for information only - please note contractual obligations will be negotiated individually with successful applicants)

• application webinar 1 – Wednesday, 3rd June 2026(opens in a new window)
• application webinar 2 – Thursday, 4th June 2026(opens in a new window)