Deadline Date: November 30, 2025
The Australian Government launched the Defence Industry Development Grants Program in 2024 under the Defence Industry Development Strategy to support small and medium enterprises (SMEs) across Australia in building sovereign capability, global competitiveness, technical superiority, and national security through four key funding streams running until 2028.
The objective of the program is to build the industrial base Australia needs to achieve Defence outcomes in areas of strategic priority. The Defence Industry Development Grants Program funds four distinct grant opportunity streams tailored to address the program outcomes: Sovereign Industrial Priorities, Skilling, Exports, and Security.
The Defence Industry Development Grants Program is a national initiative providing $169.1 million in total funding to strengthen Australia’s defence industrial base. Recently, an additional $15.5 million has been allocated over two years from 2024–25 to 2025–26 to support projects aligned with Australia’s Nuclear-Powered Submarine (NPS) program. The additional funds are distributed across all four program streams, with the largest allocation going to the Sovereign Industrial Priorities Stream.
Under the Sovereign Industrial Priorities Stream, eligible SMEs can apply for grants up to $1 million to purchase manufacturing plant and equipment that directly supports programs aligned with the Sovereign Defence Industrial Priorities (SDIPs). The Skilling Stream offers up to $250,000 to upskill and train personnel in trade, technical, and professional areas crucial to defence capability. The Exports Stream, also capped at $250,000, aims to help SMEs overcome export barriers and build scale in defence capability priority areas. The Security Stream provides up to $100,000 to help businesses strengthen and maintain defence-related security systems.
All grants cover up to 50% of eligible expenditure, and projects must be completed by 31 March 2028. However, NPS-related projects are required to conclude by 30 April 2026. Applications can be submitted anytime while the program remains open, with assessments conducted in batches according to stream-specific closing dates. Applicants seeking NPS-related funding must include a Letter of Support from the Australian Submarine Agency (ASA).
Eligible applicants include SMEs with fewer than 200 employees, registered for GST, and operating under an Australian Business Number (ABN). Defence Industry Associations are eligible for the Skilling Stream only. The program encourages collaboration between eligible organisations, provided one entity acts as the lead applicant responsible for project delivery and compliance with grant conditions.
Applications are assessed against clear criteria focused on alignment with Defence priorities, project impact, and delivery capacity. Each application must achieve a minimum score of 65% across all criteria to be considered meritorious, with the final decision resting with the program delegate.
You can submit your application at any time while the grant opportunity remains open, as applications are assessed in batches. For the Sovereign Industrial Priorities stream, the current batch closes on Sunday, 30 November 2025, at 11:59 pm (AEDT). Similarly, the Skilling stream also closes on Sunday, 30 November 2025, at 11:59 pm (AEDT).
For the Export and Security streams, the current batch closing date is Friday, 31 October 2025, at 11:59 pm (AEDT). Applicants should ensure their submissions are completed before these deadlines to be considered in the respective assessment batches.
For more information, visit DISR.
