Minister for Industry Ian Macfarlane said the programme will aim to work with Australian industry to identify and access new markets and new job opportunities.
"Australian manufacturing is turning its focus to new areas of growth and specialist expertise where we can capitalise on our areas of competitive strength and tap into global supply chains.
"The Manufacturing Transition Programme will aid this process through grants of $1 million to $10 million that focus on ensuring manufacturing businesses become more competitive and sustainable.
"The Australian government is delivering practical and targeted programmes that support Australia's manufacturing sector as it transitions towards higher-value, knowledge-based activities.
"We are providing the right settings through tailored programmes as well as getting the economic fundamentals right to facilitate investor confidence and encourage productivity growth.
"The Manufacturing Transition Programme is about moving firms away from low-tech commodity style production that may not be globally competitive, to advanced manufacturing where Australia's specialised knowledge and skills give us an advantage.
"Together with economy-wide incentive mechanisms to boost investment, we are streamlining industry assistance and supporting manufacturers to invest in their own future by moving up the value chain."
The programme is open to applications from today and will run for three years.
Information on the programme, including Programme Guidelines and the application form, is available through the Department of Industry's single business service.