Skilling Australia’s Defence Industry Grants Program (SADI)

  • Application opens until: 30 March 2026
  • Grants: $5,000 – $500,000

Through the Skilling Australia’s Defence Industry Grants Program (SADI), the Australian Government provides grants to Small and Medium Enterprises (SMEs) in the defence sector over three years with upskilling and training opportunities to enhance workforce skills and capability to satisfy current and future Defence demands

Key Requirements

This program covers up to 100 per cent of eligible project expenditure for various defence skills training activities. An eligible applicant may may apply for multiple grants or group multiple eligible activities into one application. The funding is capped at $500,000 in a six-year period from 2020–21 to 2025–26

  • per eligible business; and
  • per industry association

which is applying for funding to train their staff.

What is eligible for funding?

Eligible activities include:

  • technical and trade skills training, such as design, engineering, and project/program management, logistics, and awareness of Commonwealth Government processes, for example procurement services and defence operations, as well as support services (including information technology) cyber security and technology)
  • human resource training and skill development practises that emphasise lifetime learning cultural change, change management, and human resource strategies/systems are all examples of learning facilitation of staff training and development, as well as workforce planning
  • micro certificate courses that are not yet part of a training package or approved of course, they must meet defensive capability requirements. This can refer to a multitude of things, training modules integrated to generate new skill sets and training tailored to unique business needs.
  • apprenticeship supervision assistance to give supervision by a suitably competent individual employee in your company to an apprentice who primarily works in defence projects on the following scale per applicant, with funding restrictions that may apply:
    • Year 1 – $4,000 per semester for supervision costs
    • Year 2 – $3,000 per semester towards the costs of supervision
    • Year 3 – $2,000 per semester towards the costs of supervision
    • Year 4 – $1,000 per semester towards the costs of supervision
  • supervisory support for on-the-job training where the supervisor giving the training is an expert adequately trained employee in your company who is solely technical in nature and works directly with you defence developments are supported. Support may be funded at a rate of $80.00 per hour (funding caps may apply), and you must show that the training:
    • is being overseen by a sufficiently skilled employee in your company
    • is of a purely technical nature (e.g. machine use)
    • is closely related to a Defence contract or contracts
    • the level of competency acquired is verifiable
    • the trainee is not an apprentice
    • the training activity does not take place in a classroom
    • if the Commonwealth requires it, log books (for training and supervision hours) can be provided
  • Original Equipment Manufacturer (OEM) training for a maximum of three employees where the training is not included in the equipment purchase price (must provide evidence). The following information must be provided upon submitting the application:
    • a training syllabus/plan
    • a detailed itemised quote for the training proposed
    • mail from the OEM clearly states that the training fees were not included in the product purchase price; and, if applying for training to be completed outside of Australia, correspondence from the OEM must state that the training is not accessible in Australia.

What companies are eligible for funding?

To be eligible for this grant, you must be an SME that currently has a defence contract, are tendering for one or are a subcontractor to a defence prime. Or defence industry associations training their own staff or facilitating training to business they are representing can apply.

  • be an SME with less than 200 employees that currently service, or intend to service, the defence industry sector
  • have an Australian Business Number (ABN)
  • be one of the following entities:
    • an entity, incorporated in Australia
    • an incorporated trustee on behalf of a trust

Is this grant competitive or entitlement based?

Entitlement. Applications are assessed against eligibility criteria.

How can I increase my chances of winning this grant?

By engaging an accredited government grants consultant, such as Avant Group.

As part of your engagement with Avant Group, your account manager will assess the required documents and will provide the following as needed to support your grant submission.

Grant application writeup including a detailed presentation illustrating how the grant funding will contribute to your project, how the funding will contribute to the project’s budget, a project milestone plan, delivery timeline, impact on employment if applicable and a breakdown of the management and leadership team for the project

How can I get help with my application? 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.