Funding to bolster the nation’s defence sector by supporting businesses to enhance their capabilities in four key areas: Sovereign Industrial Priorities, Exports, Skilling, and Security.
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What is the Defence Industry Development Grant (DIDG)?
The Defence Industry Development Grants Program (DIDGP) is a key initiative of the Australian Government aimed at strengthening Australia’s sovereign defence industrial base. It provides targeted support to small to medium enterprises (SMEs) and Defence Industry Associations (DIAs) to boost sovereign capability, enhance technical superiority, support exports, upskill the workforce, and uplift national security.
Following the Australian Government’s Defence Industry Development Strategy, the program funds four specific streams:
- Sovereign Industrial Priorities – Funding to help SMEs purchase and commission manufacturing plant and equipment directly supporting Australia’s key sovereign defence capabilities.
- Skilling – Support for upskilling the defence industry workforce in critical technical and professional skill areas aligned with Sovereign Defence Industrial Priorities.
- Exports – Assistance for SMEs to overcome export barriers and grow their capability to compete in international defence markets.
- Security – Grants to help defence industry businesses improve and maintain their physical and cyber security measures in line with Defence Industry Security Program (DISP) standards.
Additionally, a dedicated funding allocation is available to support Australia’s Nuclear-Powered Submarine (NPS) program, enhancing Australia’s strategic defence capabilities.
Defence Industry Development Grant level of support
Minimum and Maximum Grant Amounts:
- Sovereign Industrial Priorities Stream: $50,000 to $1,000,000
- Skilling Stream: $5,000 to $250,000
- Exports Stream: $15,000 to $250,000
- Security Stream: $10,000 to $100,000
Co-Contribution Requirement:
Grants will cover up to 50% of eligible expenditure. Applicants must contribute the remaining 50% from non-government sources.
Funding Cap:
A maximum of $3 million per ABN over any three-year period applies. If this cap is reached, new projects can only commence after the three-year term expires.
Defence Industry Development Grant important dates
The closing dates for the current batches are:
- Sovereign Industrial Priorities stream – Saturday 31 May 2025, 11:59 pm (AEST).
- Skilling stream – Saturday 31 May 2025, 11:59 pm (AEST).
- Export stream – Wednesday 30 April 2025, 11:59 pm (AEST).
- Security stream – Wednesday 30 April 2025, 11:59 pm (AEST).
- Register your interest with GrantHelper
Defence Industry Development Grant objectives
The objectives of the Defence Industry Development Grants Program are to:
- Develop a more capable, resilient, and competitive Australian defence industry.
- Support Defence outcomes in areas of strategic priority.
- Enhance the skills and capacity of the Australian defence industry workforce.
- Strengthen export capability in defence sectors aligned with Sovereign Defence Industrial Priorities.
- Uplift the security of Australia’s defence industrial base in response to the challenging strategic environment.
Projects eligible for Defence Industry Development Grant support
Eligible projects must:
- Be undertaken within Australia.
- Have a direct link to at least one Sovereign Defence Industrial Priority.
- Include activities specific to the stream you are applying for.
- Meet minimum eligible expenditure thresholds.
Here’s what is eligible under each stream:
1/4 Sovereign Industrial Priorities Stream
Projects must involve the purchase, leasing (minimum four-year term), construction, installation or commissioning of manufacturing plant and equipment that is directly used to develop or deliver programs aligned to the Sovereign Defence Industrial Priorities. Eligible activities may also include design, engineering, workforce training, and commissioning activities related to the new equipment.
2/4 Skilling Stream
Projects must focus on increasing Defence-related technical skills capacity or capability within the applicant’s organisation (or an SME if the applicant is a Defence Industry Association). Training must be delivered by a registered training organisation, tertiary education provider, professional training provider, an appropriately qualified employee, or an original equipment manufacturer (OEM).
3/4 Exports Stream
Projects should aim to overcome barriers to exporting Defence products or services and build competitiveness in international markets. Activities may include targeted activities to assist market entry, export planning, or meeting export compliance requirements aligned with Sovereign Defence Industrial Priorities.
4/4 Security Stream
Projects must help businesses improve or maintain physical and/or cyber security measures to align with Defence security requirements, including those outlined in the Defence Industry Security Program (DISP). Activities may include upgrades to secure facilities, cybersecurity system enhancements, and implementing secure communication channels.
Ineligible expenditure under all streams includes:
- Product certifications, testing, and accreditations not directly linked to commissioning funded equipment.
- Creation of inventory or stock.
- Non-recurring engineering costs (unless directly related to commissioning funded capital equipment).
- Research and product development costs not directly supporting eligible activities.
- Marketing, networking, and trade show participation.
- Routine operational expenses such as rent, utilities, and office supplies.
- Purchase of standard office equipment or motor vehicles.
- Software development (except technical software linked to funded equipment).
- Security clearance costs and facilities not directly linked to funded security upgrades (separate grant stream available).
- Costs incurred prior to notification of grant approval.
- Any in-kind contributions or financing costs.
- Travel and overseas expenditure exceeding 10% of total eligible project costs (unless specifically approved).
See the individual guidelines for each stream for full details of projects eligible and ineligible for DIDG support.
Other Defence Industry Development Grant important details that you will need to know
Organisations eligible for Defence Industry Development Grant support
You are eligible to apply if you:
- Are an SME with fewer than 200 employees, or a Defence Industry Association (Skilling Stream only).
- Are incorporated in Australia.
- Have an ABN.
- Are registered for GST.
- Are non-income-tax-exempt.
- Have an account with an Australian financial institution.
Ineligible applicants include individuals, partnerships, unincorporated associations, overseas organisations, government bodies, and any organisation listed on the National Redress Scheme’s ineligible list.
Defence Industry Development Grant assessment criteria
Sovereign Industrial Priorities Stream:
- Criterion 1: Contribution to the development or enhancement of one or more Sovereign Defence Industrial Priorities.
- Criterion 2: Capacity, capability, and resources to deliver the project and its commercial benefits.
Skilling Stream:
- Criterion 1: Impact of the skilling initiative on the defence industry’s ability to meet priority Defence capabilities.
- Criterion 2: Capability and readiness to deliver the skilling project effectively.
Exports Stream:
- Criterion 1: Potential to enhance the export capabilities of the Australian defence industry.
- Criterion 2: Capacity to implement export-related activities successfully.
Security Stream:
- Criterion 1: Contribution to the security enhancement of the Australian defence industrial base.
- Criterion 2: Ability to deliver security-related projects and achieve intended outcomes.
See the individual guidelines for full details of the assessment criteria for each stream.
How do I get the Defence Industry Development Grant?
Applicants must:
- Read and understand the guidelines.
- Ensure eligibility for the funding. Applicants that do not meet all the eligibility criteria will not be considered.
- Deliver the project as outlined in the application.
- Provide complete information requirements.
Information to prepare for the Defence Industry Development Grant application
Prepare the following before submitting your application:
- Project Budget (template provided).
- Risk Management Plan (maximum four pages).
- Accountant Declaration (template provided).
- Letters of Support (where applicable).
- Trust Deed (if applying on behalf of a trust).
Applicants seeking NPS funding must secure a Letter of Support from the Australian Submarine Agency (ASA) early in the process.
Applying for the Defence Industry Development Grant
Applications are submitted online through portal.business.gov.au.
Register your interest here with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Defence Industry Development Grant resources
- Source – Defence.gov.au
- Source – Business.gov.au
- Register your interest
- Defence Industry Strategy
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