Sovereign Industrial Capability Priority Grants

Up to $1M is available to invest in projects that build capabilities aligned with Defence’s Sovereign Industrial Capability Priorities.

Sovereign Industrial Capability Priority Grants

The Sovereign Industrial Capability Priority Grants will help Australian SMEs to invest in projects that build capabilities aligned with Defence’s stated Sovereign Industrial Capability Priorities.



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.



The objective of the Sovereign Industrial Capability Priority grant is to support Australian SMEs to supply capabilities that are most critical to Defence. The Sovereign Industrial Capability Priority Grants will help Australian SMEs to invest in projects that build capabilities aligned with Defence’s stated Sovereign Industrial Capability Priorities.

The intended outcome of the grant is to grow a robust and resilient Australian SME industrial base capable of providing a significant contribution to Sovereign Industrial Capability Priorities.

Receiving a grant through this opportunity in no way obligates the Commonwealth to enter into future contracts with the grant applicant, or implies preferential consideration in other Defence programs.



The grant amount will be up to 50 per cent of eligible project costs.

  • The minimum grant amount is $50,000
  • The maximum grant amount is $1 million.

Grant funding is capped at $3 million in a three-year period per recipient as identified by ABN. If you have received the maximum $3 million in a three-year period, you may apply for further funding within the three-year period but cannot start your new project until the three-year term has expired. The three-year period commences on the date on which the first grant agreement is executed.

There is no limit on the number of grants a business can receive over the life of the grant opportunity.


Eligible Projects

To be eligible your project must:

  • include eligible activities and eligible expenditure
  • have at least $100,000 in eligible expenditure
  • occur within Australia.

The maximum grant period is 30 months.


Eligible Applicants

To be eligible you must

  • be an SME with less than 200 employees
  • have an Australian Business Number (ABN)

and be one of the following entities:

  • a company, incorporated in Australia
  • an incorporated trustee on behalf of a trust

In order to be eligible you must

  • provide evidence from your board (or chief executive officer or equivalent if there is no board) that the project is supported, and that you can complete the project and meet the costs of the project not covered by grant funding
  • provide an external Accountant Declaration that confirms you can fund your share of the project costs. You must use the Accountant Declaration form available at the bottom of this page.



Applications open on an ongoing basis.


More Information

2018-11-27T14:30:59+00:00November 27th, 2018|