Capability Improvement Grant

What is the Capability Improvement Grant?

The Centre for Defence Industry Capability (CDIC) Capability Improvement Grant are small grants to engage external expertise to help you work on improving the operations of your business, as recommended by your CDIC Defence Business Adviser



The Centre for Defence Industry Capability (CDIC) is a key initiative of the 2016 Defence Industry Policy Statement. The CDIC provides strategic leadership for the Australian defence sector and partners with industry to help build a strong, sustainable, innovative and internationally competitive Australian industry that meets defence capability requirements.

The intended outcomes of the CDIC are to:

  • improve the business capability, productivity and global competitiveness of small and medium enterprises (SMEs) in the defence sector
  • ensure that industry and Defence are well connected in order to tailor business capabilities to defence industrial priorities
  • contribute to a strong, sustainable, and internationally competitive defence industry.

To apply for a Capability Improvement Grant you must first access a CDIC advisory and facilitation service and receive a report from your business adviser identifying recommendations to improve the operations of your business.



The objective of the Capability Improvement Grant is to improve the operations of your business by implementing recommendations made by your CDIC business adviser and the intended outcome of the opportunity is to improve the capability, capacity and sustainability of your business to meet Defence requirements.



Due to the challenges of the COVID-19 pandemic, Minister for Defence Industry, the Hon Melissa Price MP, announced on 29 October 2020 additional funding for the Capability Improvement Grant.  Updated Grant Opportunity Guidelines will apply for all applications lodged between 12 November 2020 and 30 June 2021.

A grant of $4,000 to $240,000 to reimburse you for up to 80% of the cost of engaging a consultant or expert to implement recommended business capability improvements.

There is no limit to the number of grants your business can receive, but your total grant funding is capped at $240,000 in a 3-year period.


Eligible Projects

To be eligible for the Capability Improvement Grant, your project must:

  • sufficiently improve the capability, capacity or sustainability of your business to meet Defence’s need for a product or service
  • have a clear link to a recommendation identified in your CDIC advisory service report
  • engage a provider that is external to your business to predominantly provide a service
  • not have commenced or had any costs incurred prior to notification that your application is successful
  • have at least $5,000 in eligible expenditure.


Eligible Applicants

To be eligible for the Capability Improvement Grant, you must:

  • be a small to medium enterprise (SME) with less than 200 employees
  • be applying to implement recommendations identified by your CDIC business adviser in your advisory service report
  • have an Australian Business Number (ABN)
  • be registered for the Goods and Services Tax (GST)

and be one of the following entities:

  • a company, incorporated in Australia
  • a company limited by guarantee
  • an incorporated trustee on behalf of a trust.

The program can only accept applications:

  • where you apply within 6 months of receiving a CDIC advisory service report
  • if you have successfully applied for a Capability Improvement grant within the 6 month timeframe you can apply for further supplementary grants up to 12 months from the date you received the advisory service report.



Applications open on an ongoing basis.


More Information

What is the #1 grant for start-ups?

12,000+ companies access the R&D tax incentive per year that yields a CASH REBATE of up to 43.5%.
This might be perfect your start up.
Do you want to know more?

Scroll to Top
R&D Top 10 Consultant Tips

Top 10 Consultant Tips to Maximise the R&D Tax Incentive