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What is the Sovereign Industrial Capability Priority Grant?

The Sovereign Industrial Capability Priority Grant provides funding for projects that build capabilities aligned with Defence’s Sovereign Industrial Capability Priorities.



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.



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 following key changes have been made to Sovereign Industrial Capability Priority Grants:

  • Minimum grant funding available has increased from $50,000 to $70,000.
  • Maximum grant funding available has increased from $1 million to $1.4 million.
  • Industry co-contribution has reduced from 50% of eligible project value to 30% of eligible project value.
  • Design, engineering and commissioning activities and workforce training and accreditation must clearly relate to the core project activities.


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 for the Sovereign Industrial Capability Priority grant, 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 for the Sovereign Industrial Capability Priority grant 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.



Sovereign Industrial Capability Priorities applications open on an ongoing basis.


Need Help With Your Grant Application?

Call 1300 658 508


More Information


How to get the Sovereign Industrial Capability Priority grant?

Priorities – 50%
The extent to which your project will help you contribute to Defence’s Sovereign Industrial Capability Priorities

You should demonstrate this by describing the extent that your project will contribute to the development, enhancement and maintenance of one or more of the Sovereign Industrial Capability Priorities, as outlined in the 2018 Defence Industrial Capability Plan.

Capability – 30%
Your capacity, capability and resources to deliver the project.

You should demonstrate this through identifying:

  1. your plan to manage the project. Include detail on the key risks, timeframes and budget.
  2. your track record managing similar projects. Include detail on the key personnel with the right skills and experience, including management and technical staff who will manage the delivery of the project.
  3. how you will measure the success of the project.
  4. your ability to secure your intellectual property, equipment and technology against physical and cyber threats.


Impact – 20%
The impact of grant funding.

Demonstrate how the grant funding will assist your organisation by:

  • describing the likelihood the project would proceed without the grant and explain how the grant will benefit the size and timing of your project. If you have already received a SICP grant explain why you need ad