The Victorian Government has opened an $8 million co-investment program to help small and medium freight businesses transition to zero-emission vehicles. If your business uses diesel or LPG forklifts as part of a freight or logistics operation in Victoria, this program may directly apply to you. This guide covers what the program includes, who qualifies, and how to apply.
What Is the VFDC Program?
The Victorian Freight Decarbonisation Co-Investment (VFDC) Program is a Victorian Government initiative offering grants of up to $300,000 (excl. GST) to eligible small and medium freight operators. The goal is to help businesses reduce their reliance on diesel and LPG by co-funding the transition to low or zero-emission vehicles and infrastructure.
This is a co-investment model — the government contributes $5 for every $1 your business puts in. In practice:
| Total Project Cost | Government Grant (5/6) | Your Contribution (1/6) |
|---|---|---|
| $180,000 | $150,000 | $30,000 |
| $360,000 | $300,000 | $60,000 |
Your co-contribution must be cash only — in-kind contributions and funding from other government programs do not count.
What Does the Grant Cover?
Eligible activities under the VFDC Program include:
- Buying or leasing low or zero-emission freight vehicles
- Fit-outs and retrofits that customise a new vehicle for its freight task (refrigerated bodies, tail-lifts, specialised equipment)
- Installing EV charging or refuelling infrastructure at your depot (including behind-the-meter site upgrades)
- Charging and refuelling costs for new zero-emission vehicles
- Trialling alternative low-carbon fuels such as renewable diesel or biodiesel
- New technologies or innovative business ideas that reduce freight emissions
Routine operating and maintenance costs are not eligible. The grant is designed for capital investment in cleaner technology.
Who Is Eligible?
The program is open to Victorian-based small and medium freight operators. Your business must meet all of the following criteria:
- ABN History Your business holds a valid ABN registered since 30 June 2022.
- SME Size Your business employs 200 or fewer full-time equivalent (FTE) staff.
- Registered and Operating in Victoria Your business must be registered and actively operating in Victoria.
- Financial Viability Your business is not insolvent and has no directors who are undischarged bankrupts. You must be able to provide three years of audited financial statements.
Typical eligible businesses include road and rail freight operators, freight forwarding and logistics providers, courier and delivery businesses, and waste and bulk transport operators.
Eligible ANZSIC codes include:
| Code | Category |
|---|---|
| 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 |
Who cannot apply: Government entities, overseas organisations, businesses with ABNs registered interstate, passenger transport services, and businesses not engaged in land freight operations are not eligible.
How Does the Application Process Work?
The VFDC Program runs through a two-stage process:
Stage 1 — Expression of Interest (EOI)
Everyone must start here. The EOI is submitted online and collects basic business information and a brief description of your proposed project. You will need to provide:
- Your ABN (and ACN or IAN if applicable)
- WorkSafe Certificate of Currency (if applicable)
- Confirmation you can provide 3 years of audited financial statements
- Business details: employee numbers, number of freight vehicles, annual turnover
- Project outline: what you plan to do, expected outcomes, timeline, and funding request
EOI Deadline: 4:00 PM, Wednesday 22 April 2026.
Stage 2 — Full Application (by invitation only)
Only shortlisted applicants from the EOI stage will be invited to submit a full application. This stage opens in May–June 2026, with outcomes expected in October 2026.
Full program timeline:
| Milestone | Date |
|---|---|
| EOI opens | 8:30am, 23 March 2026 |
| EOI closes | 4:00pm, 22 April 2026 |
| EOI assessments | April–May 2026 |
| Applications open (invite only) | May–June 2026 |
| Applications close | June–July 2026 |
| Application assessments | June–August 2026 |
| Notification of outcomes | October 2026 |
How Are Applications Assessed?
EOIs and applications are assessed based on three criteria:
- Business eligibility — does your business meet the program requirements?
- Alignment with emissions reduction goals — how directly does your project reduce freight emissions?
- Ability to deliver on time — can your project be completed within 18 months?
For the full application stage, projects are scored on project alignment, design, delivery capability, and financial viability. Final decisions are made by the Minister for Ports and Freight. Projects with greater emissions reductions, shared-use infrastructure, or stronger co-contributions may be prioritised.
👉 Want help preparing your EOI? Contact EPower before April 22 →
How EPower Supports Your VFDC Application
EPower supplies lithium-ion forklifts designed for freight and logistics operations — the type of equipment relevant to VFDC-funded transitions.
Beyond the equipment itself, EPower provides a comprehensive technical support package to help you put together a strong EOI submission:
- Carbon Comparison Reports — data comparing your current diesel or LPG emissions against new lithium-ion units, formatted for the DTP assessment process
- Grant-Compliant Quotes — equipment quotes structured to meet DTP audit standards
- Guaranteed Delivery Commitment — documented schedules confirming project completion within the 18-month grant window
- Equipment Selection Guidance — helping you identify the right specification for your freight operation before finalising your EOI
EPower has consulted with DTP on equipment eligibility. We recommend contacting DTP directly at [email protected] to confirm your specific business circumstances before submitting.
A Note on Timing
The EOI window closes at 4:00 PM on 22 April 2026. Gathering audited financials, preparing your project outline, and selecting the right equipment all take time — and a rushed submission is harder to assess favourably.
If you are considering applying, the practical step is to start ahead of the April 22 deadline.
Want Help With Your EOI?
If you want to understand whether your business qualifies and what a VFDC-funded project might look like, EPower can help you work through the numbers and prepare the technical documentation your EOI needs.
📩 Leave your details and our team will be in touch →
No obligation. We will help you assess eligibility, prepare the documentation, and finalise your equipment selection — so you can submit a complete EOI before the April 22 deadline.
