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Defence Industry Development Grants Program – Exports Stream

Defence Industry Development Grants Program – Exports Stream

  • Grants of $15,000 to $250,000, covering up to 50% of eligible project costs
  • Applications are open on a rolling basis and assessed in batches about every three months
  • Applications close on 30 June 2030
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The Defence Industry Development Grants Program (DIDG) awards $249.1 million in grants over six years, from 2024–25 to 2029–30. It was announced in the Defence Industry Development Strategy on 29 February 2024, and the Defence Industry Development Strategy 2026, released on 2 July 2026, extended it. The program aims to build the industrial base Australia needs to deliver Defence's strategic priorities.

The program has four grant streams: Sovereign Industrial Priorities, Skilling, Exports, and Quality & Security.

The Exports Stream helps SMEs overcome barriers to exporting and build the scale and competitiveness to supply defence products and services overseas. It funds plant and equipment that directly supports defence export opportunities, and business certifications needed to join defence export supply chains.

About $30 million is available for this stream, including about $2 million for projects that support Australia's NPS program. Defence can move funding between streams so the strongest applications get funded.

Key Requirements

The program aims to:

  • develop a more capable, resilient and competitive Australian defence industry that supports Defence’s strategic priorities
  • help build the industry workforce needed for priority defence capabilities, now and in the future
  • support exports that strengthen Australia’s defence industry
  • improve the security of Australia’s defence industry

Grants cover up to 50% of eligible project costs, and projects must spend at least $30,000 on eligible costs. Funding is capped at $500,000 per business (ABN) over any three-year period. Your share of the costs can’t come from other government funding. If your business or group gets funding from the NRF or the Defence Industry Growth Facility, you must declare it and confirm it won’t pay for the same work.

Your application must name at least one defence capability component you supply, or are preparing to supply, that is listed in the Detailed Sovereign Defence Industrial Priorities. Projects linked to “Grow” or “Guide” priorities are favoured over “Monitor” priorities, and mature products with established customers are also favoured. You must include a letter of support from Defence or your defence industry customer. NPS applicants should also include a letter of support from the Australian Submarine Agency.

For grants over $100,000, you must provide an external accountant’s declaration confirming you can pay your share of the project, including any ineligible costs.

The grant aims to deliver:

  • a stronger, more competitive Australian defence industry
  • more Australian defence products and services in global supply chains
  • closer industry collaboration with trusted international partners

Applicants should read the Exports Stream grant opportunity guidelinesΒ for the full list of eligible and ineligible costs.

What is eligible for funding?

Projects must support one or more of the Defence Industry Development Strategy 2026 priorities:

  • Maintenance, repair, overhaul and upgrade of Australian Defence Force 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 activities:

  • Plant and equipment: buying, leasing, building, installing or commissioning industrial or technical equipment used directly to deliver defence export opportunities, including the design, engineering, commissioning and staff training needed to get it running
  • International certifications (up to a $100,000 grant): ISO 9001, 13485, 14001, 17025, 31001, 44001 and 45001, achieved through a third-party provider
  • Other defence compliance (up to a $100,000 grant): aerospace quality standards AS9100, AS9110 and AS9120, ship classification certifications such as Lloyd’s Register, DNV and Bureau Veritas, and Nadcap accreditation

Other eligible costs include:

  • building modifications needed to install the equipment, as long as they aren’t the largest cost in the project
  • external staff training
  • regulatory approvals
  • contingency of up to 10% of eligible costs
  • travel, with accommodation capped at $200 a night and domestic travel at 10% of eligible costs

To be eligible, a project must:

  • spend at least $30,000 on eligible costs
  • be carried out in Australia
  • run for no more than 18 months
  • be completed by 31 March 2030
  • not be funded by other government sources

The grant can’t pay for:

  • labour costs of any kind
  • product certification, testing or qualification
  • research and development, prototyping or batch trials
  • marketing, trade shows, networking or export consultants
  • export documentation or manuals
  • software development, office equipment, vehicles or IT
  • security uplift such as Cybersecurity Maturity Model Certification (CMMC) or NIST 800-171, which is covered by the Quality & Security Stream
  • trade control compliance such as International Traffic in Arms Regulations (ITAR)
  • rent, maintenance, or costs incurred before the grant agreement is signed

If more than half of the budget is ineligible, the whole application is rejected.

What companies are eligible for funding?

Applicants must:

  • be an SME with fewer than 200 employees
  • have an ABN and be registered for GST
  • have an account with an Australian bank or financial institution
  • not be exempt from income tax

Your organisation must be one of the following:

  • an entity incorporated in Australia
  • a company limited by guarantee
  • an incorporated trustee applying on behalf of a trust

Joint applications are accepted if every partner contributes money. One lead organisation submits the application and signs the grant agreement.

Sole traders, partnerships, trusts (unless applying through an incorporated trustee), unincorporated associations, overseas organisations and government bodies can’t apply.

Is this grant competitive or entitlement based?

Competitive. Your application will be assessed among other applications by a judging panel.

How can I increase my chances of winning this grant?

By engaging a professional government grant writer consultant. Avant Group is Australia’s largest independent grants advisory firm. Find out more about our government grant writing and consulting service here.Β 

How can I get help understanding if I’m eligible for this grant? Or know if I’m likely to win funding?

Avant Group offers a no-obligation assessment of your eligibility for funding and will assess your likelihood of a successful grant application.