Grants up to $1,000,000 to support Australian Small to Medium Enterprises to invest in projects that develop capabilities aligned with Defenceโs Sovereign Industrial Capability Priorities.
Current status of program
CLOSED
This program is no longer available. Click here for information on currently available defence grant programs.
On this page you will find
What is the Sovereign Industrial Capability Priority Grant (SICPG)?
The Sovereign Industrial Capability Priority Grant (SICPG) provides funding for Australian businesses to develop industrial capabilities that fit with Defenceโs Sovereign Industrial Capability Priorities. The Sovereign Industrial Capability Priorities are capabilities that are critical to Defence and must be developed or supported by Australian industry. This means Australia must have access to, or control over the skills, technology, intellectual property, financial resources and infrastructure that underpin the Priorities. The Priorities represent a subset of the industrial capabilities that Defence relies on to deliver its core objectives requirements and will be managed closely across defence and industry planning.
Sovereign Industrial Capability Priorities are those
- operationally critical to the Defence mission;
- priorities within the Integrated Investment Program over the next three to five years; or
- in need of dedicated monitoring, management, and support due to their industrial complexity, Government priority, or requirements across multiple capability programs.
SICPG level of support
Grants
- Minimum grant amount of $50,000.
- Maximum grant amount of $1 million.
- Grant funding is capped at $3 million in a 3-year period per recipient.
Co-contribution
- Recipient needs to contribute 50% of the eligible project value
SICPG important dates
- This grant program is being revised and will open as a new stream within the Defence Industry Development Grant program in mid-2024.
- Register your interest here with GrantHelper
SICPG important details that you will need to know
SICPG objectives and outcomes
The objective of the Sovereign Industrial Capability Priority grant is to support Australian SMEs to supply capabilities that are most critical to Defence. The Sovereign Industrial Capability Priority Grants will help Australian SMEs to invest in projects that build capabilities aligned with Defenceโs stated Sovereign Industrial Capability Priorities.
The intended outcome of the grant is to grow a robust and resilient Australian SME industrial base capable of providing a significant contribution to Sovereign Industrial Capability Priorities.
Organisations eligible for SICPG support
To be eligible you must:
- be an SME with less than 200 employees as defined in the Glossary.
- have an Australian Business Number (ABN)
and be one of the following entities:
- an entity, incorporated in Australia
- an incorporated trustee on behalf of a trust.
Joint applications are acceptable, provided you have a lead organisation who is the main driver of the project and is eligible to apply.
Additional eligibility requirements include applications:
- where you provide evidence from your board (or chief executive officer or equivalent if there is no board) that the project is supported, and that you can complete the project and meet the costs of the project not covered by grant funding
- where you provide evidence of how you will provide your share of project costs such as an accountant declaration that confirms you can fund your share of the project costs, including any ineligible expenditure. An accountant declaration template is available on business.gov.au and GrantConnect. If you do not use this template, you must include equivalent information and the declaration in your own document.
Eligibility criteria cannot be waived under any circumstances.
You are not eligible to apply if you are:
- an organisation, or your project partner is an organisation, included on the National Redress Schemeโs website on the list of โInstitutions that have not joined or signified their intent to join the Schemeโ
- an employer of 100 or more employees that has not complied with the Workplace Gender Equality Act (2012).
- an individual
- partnership
- trust (however, an incorporated trustee may apply on behalf of a trust)
- a Commonwealth, State, Territory or local government body (including government business enterprises).
See the guidelines for full details of eligible and ineligible organisations.
Projects eligible for SICPG support
To be eligible for funding, proposed projects must:
- include eligible activities (refer to section 5.2) and eligible expenditure (refer to section 5.3)
- have at least $100,000 in eligible expenditure
- occur within Australia.
See the guidelines for full details of eligible projects.
Activities eligible for SICPG support
Eligible activities must directly relate to:
- buying, leasing, constructing, installing or commissioning of capital equipment including specialist software to enhance cyber security
As they relate to the above activities, this may also include:
- design, engineering and commissioning activities
- workforce training and accreditations
The Program Delegate may also approve other activities.
See the guidelines for full details of eligible and ineligible activities.
Expenditure eligible for SICPG support
You can only spend grant funds on eligible expenditure you have incurred on an agreed project as defined in your grant agreement.
The eligible and ineligible expenditure may be updated from time to time. If your application is successful, the version in place when you submitted your application applies to your project.
If your application is successful, you may be asked to verify project costs provided in your application. You may need to provide evidence such as quotes for major costs.
Not all expenditure on your project may be eligible for grant funding. The Program Delegate (who is the senior responsible officer within the department with responsibility for the program) makes the final decision on what is eligible expenditure and may give additional guidance on eligible expenditure if required.
To be eligible, expenditure must:
- be a direct cost of the project
- be incurred by you for required project audit activities.
You must incur the project expenditure between the project start and end date for it to be eligible unless stated otherwise.
You may elect to commence your project from the date we notify you that your application is successful. We are not responsible for any expenditure you incur until a grant agreement is executed.
The Commonwealth will not be liable, and should not be held out as being liable, for any activities undertaken before the grant agreement is executed.
See the guidelines for full details of eligible and ineligible expenditure.
Information to prepare for the SICPG application
You must provide the following documents with your application:
- project budget
- accountant declaration
- evidence of funding strategy, e.g. financial statements, loan agreements, cash flow documents
- evidence of support from the board, CEO or equivalent
- trust deed (where applicable).
You must attach supporting documentation in line with the instructions provided in the form. You should only attach requested documents. The total of all attachments cannot exceed 20MB. Information in attachments that are not requested will not be considered.
See the guidelines for full details of information requirements.
Applying for the SICPG
Applications are submitted online via portal.business.gov.au.
Book a no obligation discovery session with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
SICPG assessment criteria
| Ref | Criterion |
| 1 | The extent to which your project will help you contribute to Defenceโs Sovereign Industrial Capability Priorities (50 points). You should demonstrate this by describing: – the extent that your project will contribute to the development, enhancement and maintenance of one or more of the Sovereign Industrial Capability Priorities |
| Ref | Criterion |
| 2 | Your capacity, capability and resources to deliver the project (30 points). You should demonstrate this through identifying: – your plan to manage the project. Include detail on the key risks, timeframes and budget. You should attach a project budget commensurate with the grant amount requested to clearly outline your project expenditure. – your track record managing similar projects. Include detail on the key personnel with the right skills and experience, including management and technical staff who will manage the delivery of the project. – how you will measure the success of the project. – your ability to secure your intellectual property, equipment and technology against physical and cyber threats. |
| Ref | Criterion |
| 3 | The impact of grant funding (20 points). Demonstrate how the grant funding will assist your organisation by: – describing the likelihood the project would proceed without the grant and explain how the grant will benefit the size and timing of your project. If you have already received a SICP grant explain why you need additional funding. – justifying the funding amount requested with respect to the scale of the project and intended outcomes. – how the project will improve the efficiency and competitiveness of your business. Include detail on the commercial viability of the project. – the broader economic benefits from your project. |
See the guidelines for full details of the assessment.
SICPG resources
How do I get the SICPG?
You should read and understand the guidelines, the sample application form and the sample grant agreement published on business.gov.au and GrantConnect.
You should read the Defence Industrial Capability Plan to identify the specific Sovereign Industrial Capability Priority that your project will support.
You will need to set up an account to access the online portal. The portal allows you to apply for and manage a grant or service in a secure online environment.
When assessing whether the application represents value with relevant money, the panel will have regard to:
- the overall objective/s to be achieved
- the value of the grant sought
- the extent to which the application demonstrates that funding will assist to meeting the proposal outcomes/ objectives.
The panel will assess your application against the assessment criteria and compare it to other eligible applications within the batch before recommending which projects to fund.
To recommend an application for funding it must score highly against each assessment criterion.
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