Applications for the Defence Industry Development Grants Program are open

The Defence Industry Development Grants Program (the program), administered by the Federal Government, will fund small to medium enterprises (SMEs) to build the industrial base Australia needs to achieve defence outcomes in areas of strategic priority. It focuses on Australia’s sovereign capability, global competitiveness, technical superiority and national security as part of the Defence Industry Development Strategy.

This is a crucial opportunity for SMEs to build the onshore expertise and resources required to strengthen Australia’s defence industry and drive Australia in becoming more self-sufficient amidst growing geopolitical uncertainty.

The Defence Industry Development Grants Program funds four distinct grant opportunity streams tailored to address the program outcomes.

1. Sovereign Industrial Priorities

The Sovereign Industrial Priorities stream is designed to assist eligible small to medium enterprises (SMEs) invest in manufacturing plant and equipment to directly support the development and delivery of programs aligned with the Sovereign Defence Industrial Priorities (SDIPs) outlined in the Defence Industry Development Strategy. This targeted support helps position Australia’s defence industry for long-term growth and strategic success.

2. Skilling

The Skilling stream supports the Australian defence industry by providing training and upskilling in essential trade, technical, and professional skillsets. This initiative aims to develop a workforce with the right mix of qualifications and experience to meet Defence requirements. The program will enhance the capacity and capability of the Australian defence industry workforce to deliver the SDIPs outlined in the Defence Industry Development Strategy.

3. Exports

The Exports stream provides support for SMEs to overcome export barriers and help defence industry build scale and competitiveness in defence capability priority areas as identified by the SDIPs described in the Defence Industry Development Strategy.

4. Security

The Security stream helps the Australian defence industry improve and maintain security in priority areas as identified by the SDIPs and in line with the Defence Industry Security Program.

These four grants' opportunities will be assessed in batches.

Eligibility criteria

You can apply if you:

• Have an Australian business number (ABN)
• Are a SME with less than 200 employees or, for Skilling stream only, a Defence Industry Association (DIA)
• Are registered for GST
• Have an account with an Australian financial institution
• Are non-income tax exempt.

In addition, you are one of the following entities:

• An entity incorporated in Australia
• A company limited by guarantee
• An incorporated trustee on behalf of a trust.

You can’t apply if you are:

• An organisation, or your project partner is an organisation, included on the National Redress Scheme’s list of Institutions that have not joined or signified their intent to join the Scheme
• An employer of 100 or more employees that has not complied with the Workplace Gender Equality Act (2012)
• An individual
• A partnership
• An overseas organisation
• An unincorporated association
• An organisation not included in section 4.1 of the grant opportunity guidelines
• A trust (however, an incorporated trustee may apply on behalf of a trust)
• A Commonwealth, state, territory or local government body (including government business enterprises).

Project eligibility

You must complete your project by 31 March 2028.

If your project receives Nuclear Powered-Submarine (NPS) funding, your project must be completed by 30 April 2026.

Your project must:

• Be undertaken in Australia
• Include eligible activities
• Have the minimum eligible expenditure as outlined in section 5.1 of the grant opportunity guidelines for the chosen stream
• Have a clear link to the grant opportunity objective/s and outcomes.

For the Skilling stream, your project must also:

• Be aimed at increasing Defence related technical skills capacity or capability within your organisation (or an SME if you are a DIA) that is required to meet current or future defence capability needs that align to the Sovereign Defence Industrial Priorities (SDIPs)
• Be delivered by a registered training organisation, a tertiary education provider (University or TAFE), a professional training provider, an appropriately qualified employee in your business or an original equipment manufacturer (OEM).

Grant funding

Grant value is between:

• Sovereign Industrial Priorities stream - $50,000 and $1,000,000
• Skilling stream - $5,000 and $250,000
• Exports stream - $15,000 and $250,000
• Security stream - $10,000 and $100,000

Grants will cover up to 50 per cent of eligible expenditure.

How BDO can help

BDO has successfully secured numerous government grants for a range of clients across many different industries. We assist with the preparation of applications and can also help successful recipients understand novel changes to the program. If you have any questions regarding the Defence Industry Development Grants Program or any other government grants, please contact the R&D and government incentives team.