LGP Innovation Development Fund

in partnership with Telstra

Telstra Primary Logo

The Innovation Development Fund is a joint initiative between Local Government Procurement (LGP) and Telstra, created to support technology innovation for NSW councils, Regional Organisations of Councils (ROCs), and Joint Organisations (JOs). Its goal is to help local governments meet the evolving needs of their communities through strategic digital transformation.

The fund provides financial assistance to drive technology adoption, enhance business processes, and promote innovation in the public sector across New South Wales.

Funding is provided on a co‑investment basis, where the Innovation Development Fund will contribute 50% of the total project value up to $50,000 per project.

This maximum contribution results in a baseline project value of around $100,000, however there is no upper limit on total project value.

Councils are encouraged to consider higher levels of investment where additional funding would enhance project scope, impact, or long‑term value.

Key Focus Areas

The Innovation Development Fund will support three main areas:

  1. Technology and Digital Innovation Projects
    Projects that focus on innovation in digital services, and technology transformation for NSW local government.

  2. Innovation Forums, Tours, and Enablement Activities
    Programs designed to help councils solve challenges and explore new technologies through collaboration and knowledge sharing.

  3. Eligible Technology Projects
    Targeted funding for projects that meet the eligibility criteria, supporting councils in staying up to date with digital advancements and technology trends.

Applications open at 9am Monday, 9th March 2026.

Telstra - Connecting Communities
Telstra - Norfolk Island Case Study
Telstra - Tablelands Regional Council
Telstra - Cassowary Coast Regional Council
Innovation Development Fund Form - 2026 Round 1

To apply for funding for your program, please complete the form below.

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$AUD
Total estimated cost of project
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Max funding of $50k per submission

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FAQ's

The LGP Innovation Development Fund supports projects that are innovative and provide tangible benefits to councils and their communities. Projects do not need to be “world-first,” but should address problems in a new or improved way.

Strong proposals will typically:

  • Introduce new digital or technological solutions
  • Tackle emerging or existing issues in innovative ways
  • Apply technology from other sectors not yet common in local government
  • Serve as pilot initiatives for councils to trial and learn from
  • Have potential for wider sector adoption

Note: Projects that are already widely adopted in local government are less likely to receive funding unless a compelling case is made.

The LGP Innovation Development Fund aims to:

  1. Drive innovation in the digital and technology space within local government
  2. Support councils in meeting current and future community needs through smart solutions
  3. Showcase digital transformation to promote learning and adoption across the sector

By enabling councils to test and trial new ideas, the Innovation Development Fund helps pave the way for broader innovation and change in the local government sector.

Participating councils, ROCs and JOs can expect several benefits:

  • Co-investment funding of up to 50% of the total project value (up to $50,000 per project)

  • Access to technologies that improve operational efficiency and service delivery

  • Opportunities to collaborate with Telstra and LGP for guidance, expertise and shared learnings

  • A platform to showcase innovative initiatives and share insights with the broader local government sector

Available funding is not fixed. A typical funding arrangement offers up to $100,000 per project, based on:

  • $50,000 contributed by the participating Council, ROC, of JO; and
  • $50,000 matched by Telstra.

This 1:1 co-investment model effectively doubles the budget available for eligible projects.

Every proposal is welcome and evaluated individually. Priority is given to projects that:

  • Demonstrate genuine innovation
  • Are replicable across other councils
  • Offer sector-wide relevance and insight

Although there is no set timeframe for the allocation of funding, it would be considered a desirable attribute for this to be allocated 6-12 months from a grant being found successful.

It’s important that the applying organisation has their portion of funding allocated in the financial year that the project will be implemented.

While projects may vary in duration, it’s essential to have a clear implementation plan and timeline mapped out for the period that the project will be undertaken.