Defence Industry Grants Skilling Stream

Purpose and Program Overview

Defence Industry Development Grants Program – Skilling Stream is a government initiative launched on 29 February 2024. It aims to strengthen Australia’s defence industry by enhancing the skills and capabilities of its workforce. This program focuses on building sovereign capabilities, global competitiveness, and technical superiority within the defence sector.

The primary purpose of the Skilling Stream is to fund training and upskilling for personnel. This helps them gain qualifications and experience in priority trade, technical, and professional areas that align with Defence requirements. The program addresses challenges faced by small and medium enterprises (SMEs) in upskilling or retraining staff, and develops skills relevant to the Sovereign Defence Industrial Priorities.

The Skilling Stream has approximately $20 million in funding available over four years, from 2024-25 to 2027-28.

Key Grant Details

• Grant amount or funding range: $5,000 to $250,000.
• Application open and close dates: Applications opened on February 29, 2024, and are accepted on a rolling basis. The current assessment batch closes on Thursday, 31 July 2025.
• Eligible industries or business types: Australian Small to Medium Enterprises (SMEs) and Defence Industry Associations (DIAs).
• Required co-contributions: Grants cover up to 50% of eligible expenditure, with applicants contributing the remaining 50%.
• Location/state/territory applicability: Projects must be carried out in Australia.

Priority Sectors

The Skilling Stream supports the development of skills in priority trade, technical, and professional areas. These areas align with Australia’s Sovereign Defence Industrial Priorities, which include:

• Routine maintenance, repairs, overhauls, and upgrades of Australian Defence Force aircraft.
• Continuous construction of new naval ships and support for existing vessels.
• Maintaining and improving combined-arms land systems.
• Domestic manufacture of weaponry, explosives, and ammunition.
• Advancement and incorporation of autonomous systems.
• Integration and optimisation of battlespace situational awareness networks.
• Testing, certifying, and guaranteeing the reliability of defence systems.

Funding Scope

• Minimum and maximum amounts per stream: The Skilling Stream provides grants from a minimum of $5,000 to a maximum of $250,000.
• Categories or streams of funding: This is a specific stream (Skilling Stream) within the broader Defence Industry Development Grants Program.
• Project timeline or eligible funding duration: Projects must have a maximum duration of 24 months and must be completed by 31 March 2028.

Eligibility Criteria

• Business structure or size: Australian Small to Medium Enterprises (SMEs) or Defence Industry Associations (DIAs). The entity must be incorporated in Australia, including a company limited by guarantee or an incorporated trustee on behalf of a trust.
• Registered business location: The business must be an Australian entity, and 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 Australian financial institution account.
  • Must be non-income tax exempt.
  • Projects must meet a minimum eligible expenditure of $10,000.
  • Applicants must not use funding from other government sources to contribute to their portion.
  • Joint applications are permitted, with a designated lead applicant.

Eligible Activities and Expenses

Defence Industry Development Grants Program – Skilling Stream activities focused on enhancing the skills and capabilities of Australia’s defence industry workforce. Eligible activities include:

• Training and upskilling personnel to gain qualifications and experience in priority trade, technical, and professional areas relevant to Defence requirements.
• Developing and delivering training programs that address skill gaps in key defence industrial areas.
• Activities that increase the capacity or capability of the defence industry workforce.

Ineligible expenditures include research and product development, general operational expenses, and costs incurred before the grant agreement.

Assessment Process

The Defence Industry Development Grants Program – Skilling Stream is a competitive program. Applications are assessed by a judging panel and reviewed in batches every two months.

• Key evaluation criteria: Applications are assessed based on their contribution to enhancing the skills and capability of the defence industry workforce in priority areas, and the applicant’s capacity to deliver the skilling project effectively.

To improve success, applicants should demonstrate alignment with Sovereign Defence Industrial Priorities and provide a strong business case for their skilling initiative.

Recent Program Updates

The Defence Industry Development Grants Program, including the Skilling Stream, commenced on 29 February 2024 as part of the Defence Industry Development Strategy. Applications are being accepted on a rolling basis, with regular batch assessments. The current closing date for the next assessment batch is 31 July 2025.

Application Tips

Consider these points for your application:

• Ensure your project aligns with priority trade, technical, or professional skills needed in the defence industry.
• Prepare a detailed business case and project analysis that outlines the expected skill outcomes and associated benefits.
• Demonstrate how the training will address specific skill gaps and enhance the workforce’s capability.
• Confirm that your project meets the minimum expenditure requirement of $10,000.
• Consider engaging a professional grant consultant to help develop your business case and write the application.

Where to Get Help for DIDG Skilling 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.