Defence Industry Development Grants Program – Security Stream

Purpose and Program Overview

Defence Industry Development Grants Program – Security Stream aims to strengthen the security posture of Australia’s defence industrial base. Its primary intent is to assist Australian small to medium-sized enterprises (SMEs) in improving and maintaining their physical and cyber security measures.

This stream helps defence industry businesses align with the standards of the Defence Industry Security Program (DISP). It plays a direct role in enhancing national security by ensuring the integrity and resilience of the defence supply chain in a challenging strategic environment.

The DIDG Security Stream has approximately $12.5 million in available funding over the four years from 2024-25 to 2027-28, which is part of the overall $169.1 million allocated to the Defence Industry Development Grants Program.

Key Grant Details

• Grant amount or funding range: $10,000 to $100,000.
• Application open and close dates: Applications opened on 18 June 2024. The current batch for the Security Stream closes on Sunday, 31 August 2025, 11:59 PM (AEST). The overall program closes on 30 June 2027, with projects to be completed by 31 March 2028.
• Eligible industries or business types: Small to Medium Enterprises (SMEs) with fewer than 200 employees that are part of the Australian defence industry supply chain.
• Required co-contributions: Grants cover up to 50% of eligible expenditure. Applicants must contribute the remaining 50% from non-government sources. For applications over $50,000, evidence of financial capacity to meet the co-contribution is required via an accountant’s declaration.
• Location/state/territory applicability: Projects must be undertaken within Australia.

Priority Sectors

The Security Stream does not list specific industries. It supports businesses across the defence industry that need to improve or maintain security in priority areas. These priority areas are identified by the Sovereign Defence Industrial Priorities (SDIPs) and align with the Defence Industry Security Program (DISP). The grant helps meet security requirements for suppliers in the defence sector.

Funding Scope

• Minimum and maximum amounts per stream: The Security Stream provides grants from a minimum of $10,000 to a maximum of $100,000.
• Categories or streams of funding: This is a specific stream (Security Stream) within the broader Defence Industry Development Grants Program. It focuses on security-related activities.
• Project timeline or eligible funding duration: Projects must be completed by 31 March 2028. For projects receiving Nuclear-Powered Submarine (NPS) funding, the completion date is 30 April 2026. The maximum timeline for a project is 18 months after the commencement of the grant agreement.

Eligibility Criteria

• Business structure or size: Small to Medium Enterprises (SMEs) with fewer than 200 employees. Applicants must be incorporated in Australia, which includes a company limited by guarantee or an incorporated trustee on behalf of a trust.
• Registered business location: Must be an entity incorporated in Australia, and projects must be undertaken within 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.
  • Cannot be an organisation or have a project partner on the National Redress Scheme’s list of Institutions that have not joined or signed their intent to join the Scheme.
  • Cannot be an employer of 100 or more employees that has not complied with the Workplace Gender Equality Act (2012).
  • Commonwealth, state, territory, or local government agencies or bodies (including government business enterprises) are not eligible.

Eligible Activities and Expenses

The DIDG Security Stream supports activities that help businesses improve or maintain their physical and/or cyber security measures to align with Defence security requirements and DISP standards. Eligible activities include:

• Implementing advanced cybersecurity protocols and systems.
• Conducting security risk assessments and audits.
• Enhancing physical security measures at defence facilities.
• Developing and deploying secure communication technologies.
• Training staff in security best practices and protocols.
• Upgrading physical security systems, ICT, and cybersecurity to meet DISP requirements.

Ineligible expenditures include product development, prototyping, research and development (unless directly supporting eligible activities), manufacturing inputs, marketing, routine operational expenses, and costs incurred before notification of grant approval. Travel and overseas expenditure are generally limited to 10% of total eligible project costs, unless specifically approved.

Assessment Process

The Defence Industry Development Grants Program – Security Stream is a competitive program. Applications are batched and assessed periodically, approximately every two months.

• Key evaluation criteria:
  • The extent to which your grant project will help your business uplift or maintain the security controls needed to build defence industry capability in priority areas.
  • Your capacity, capability, and resources to deliver the grant project.

To be competitive, applications must address all criteria and sub-criteria, include all mandatory attachments, and demonstrate a clear link to the grant objectives and outcomes, particularly those related to Sovereign Defence Industrial Priorities.

Recent Program Updates

The Defence Industry Development Grants Program, including the Security Stream, was launched on 18 June 2024 as part of the Defence Industry Development Strategy. Applications are assessed in batches. The current closing date for the Security Stream is 31 August 2025. An authorised officer within the Department of Defence has discretion to re-profile funding between streams to ensure meritorious applications are funded.

Application Tips

Consider these points for your application:

• Double-check all eligibility criteria for your business, particularly those related to SME status and Australian incorporation.
• Prepare clear documentation demonstrating your project’s alignment with improving security controls in line with Defence requirements.
• Ensure your project addresses one or more Sovereign Defence Industrial Priorities where security uplift is needed.
• Provide evidence of your capacity and resources to deliver the security project effectively.
• If applying for over $50,000, have your accountant’s declaration ready to confirm your co-contribution.

Where to Get Help for DIDG Security 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.