Funding for business to strengthen Australia’s defence industry

21 June 2024

The Defence Industry Development Grants Program will fund small to medium enterprises (SMEs) to build Australia’s sovereign capability, global competitiveness, technical superiority and national security. The program was announced as part of the Defence Industry Development Strategy and will operate over four years from 2024-25 to 2027-28.

There are four Streams within the program offering grants:

• Sovereign Industrial Priorities - grants of up to $1,000,000 for the buying, leasing, constructing, installing and/or commissioning of manufacturing P&E (including directly related specialist software). This may also include related design, engineering, and commissioning activities, as well as workforce training and accreditations.
• Exports - grants of up to $250,000 for the buying, leasing, constructing, installing, or commissioning of manufacturing P&E used to develop and/or deliver defence export opportunities. This may include related design, engineering, and commissioning activities, as well as workforce training and achieving international certifications/accreditations.
• Skilling - grants of up to $250,000 for technical and trade skills training, micro credentials courses, apprenticeship supervision support, on-the-job training supervision support and original equipment manufacturer (OEM) training.
• Security - grants of up to $100,000 for the implementation of security measures to meet initial and ongoing Defence Industry Security Program (DISP) membership requirements or to otherwise improve the governance, personnel, physical or cybersecurity posture of the business.

Grants will cover up to 50% of eligible project expenditure.

Eligible Entities

• Eligible applicants include SMEs located in Australia with less than 200 employees (including incorporated entities, companies limited by guarantee, and incorporated trustees on behalf of a trust).
• Defence Industry Associations are eligible to apply for grants under the Skilling Stream only.
• You can partner with one or more other organisations that also meet the eligibility criteria, however there must be a lead applicant who will be the main driver of the project.

Eligible Activities

In addition to the activities relevant to each funding Stream, the activities must be undertaken in Australia and have a clear link to the grant objectives and outcomes, with the aim of increasing capability to meet the industrial priorities as outlined in the Defence Industry Development Strategy.

The Sovereign Industrial Priorities include:

• Maintenance, repair, overhaul, and upgrade of ADF aircraft.
• Continuous naval shipbuilding and sustainment.
• Sustainment and enhancement of the combined-arms land system.
• Domestic manufacture of guided weapons, explosive ordnance, and munitions.
• Development and integration of autonomous systems.
• Integration and enhancement of battlespace awareness and management systems.
• Test and evaluation, certification, and systems assurance.

Eligible Expenditure

Expenditure can include:

• Plant and equipment,
• labour,
• contractors,
• some travel and overseas expenses,
• Other eligible direct project expenditure.

Key Dates

Applications open from 18 June 2024 and can be submitted at any time.

Applications will be assessed in batches, with the closing dates for the current batches being:

• Skilling and Export Streams – Wednesday, 31 July 2024
• Security and Sovereign Industrial Priorities – Saturday, 31 August 2024.

Our team is skilled at preparing competitive applications and strategically positioning projects to align with program objectives and the factors that drive funding decisions. We have also developed processes and templates to ensure maximum efficiency.

Please reach out if you would like to discuss any of the above.