Defence Industry Development Grants Program – Exports Stream

Purpose and Program Overview

The Defence Industry Development Grants Program – Exports Stream is an Australian Government initiative launched on 29 February 2024. Its core purpose is to help Australian small and medium enterprises (SMEs) in the defence sector overcome export challenges and increase their competitiveness in international markets.

This stream is part of a broader government commitment to strengthen Australia’s defence industrial capability. It plays a role in fostering a more capable, resilient, and globally competitive Australian defence industry by supporting the growth of defence exports.

The DIDG Exports Stream has approximately $16 million in funding available over four years, from 2024-25 to 2027-28, as part of the total $153.6 million allocated to the Defence Industry Development Grants Program.

Key Grant Details

• Grant amount or funding range: $30,000 to $250,000 per grant.
• Application open and close dates: Applications opened on 29 February 2024. The current batch for the Exports Stream closes on Thursday, 31 July 2025. Applications are reviewed in batches every three months.
• Eligible industries or business types: Small and Medium Enterprises (SMEs) in the defence sector.
• Required co-contributions: Grants cover up to 50% of eligible expenditure. Applicants must contribute the remaining 50% from non-government sources.
• Location/state/territory applicability: Projects must be carried out in Australia.

Priority Sectors

The program does not specify any particular industries. It supports eligible SMEs in enhancing their defence industrial capability in areas such as routine maintenance, naval ship construction, land system improvements, domestic weaponry manufacture, autonomous systems, battlespace awareness, and defence system testing. The focus is on projects that boost defence exports and align with Australia’s overall defence outcomes.

Funding Scope

• Minimum and maximum amounts per stream: The Exports Stream offers a minimum grant of $30,000 and a maximum of $250,000 per grant. There is a cap of $500,000 per ABN over any three years across all DIDG program streams.
• Categories or streams of funding: This is a specific stream (Exports Stream) within the broader Defence Industry Development Grants Program.
• Project timeline or eligible funding duration: Projects must have a maximum duration of 18 months and must be completed by M31 March 2028

Eligibility Criteria

• Business structure or size: Small and Medium Enterprises (SMEs).
• Registered business location: Incorporated in Australia, which includes a company limited by guarantee or an incorporated trustee on behalf of a trust. Projects must be carried out in Australia.
• ABN/GST status: Must have an Australian Business Number (ABN) and be registered for GST.
• Other requirements:
  • Must have an account with an Australian financial institution.
  • Must be non-income tax exempt.
  • Projects must meet a minimum expenditure of $30,000.
  • Projects must consist of eligible activities and be directly connected to grant outcomes.
  • Applicants cannot use other government funding for their co-contribution portion.

Eligible Activities and Expenses

Defence Industry Development Grants Program – Exports Stream supports activities that enhance the defence industry’s capability and facilitate international competition. While specific examples of eligible activities were not detailed, the focus is on overcoming export barriers and growing export capability. Projects should enhance the defence industry’s capability in areas such as:

• Routine maintenance.
• Naval ship construction.
• Land system improvements.
• Domestic weaponry manufacture.
• Autonomous systems.
• Battlespace awareness.
• Defence system testing.

Ineligible expenditures include product development or prototyping, undertaking research and development, and manufacturing inputs such as non-recurring engineering activities.

Assessment Process

The Defence Industry Development Grants Program – Exports Stream is a competitive program. Applications are reviewed in batches approximately every three months.

• Key evaluation criteria: Applications are assessed based on how well they enhance the defence industry’s export capability and their alignment with the program’s objectives.

To be considered competitive, applications must address all criteria, include mandatory attachments, and demonstrate a strong link to one or more of the Sovereign Defence Industrial Priorities.

Recent Program Updates

The Defence Industry Development Grants Program, including the Exports Stream, launched on 29 February 2024. The program is ongoing, with applications being reviewed periodically in batches. The current batch closing date for the Exports Stream is 31 July 2025.

Application Tips

Consider these points for your application:

• Ensure your project meets the minimum expenditure requirement of $30,000.
• Prepare your application with a clear business case and project analysis.
• Align your project directly with enhancing Australia’s defence export capability.
• Demonstrate how your project will help you compete in international defence markets.
• Consider seeking assistance from a professional grant consultant for business case development and writing the application.

Where to Get Help for DIDG Export Stream

Consider consulting with a professional grant specialist, such as Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit relevant government websites for application templates and further guidance.