Local defence manufacturing receives funding boost

The Australian Government has announced that a further $17 million has been allocated to 44 Australian businesses in the latest rounds of the Defence Industry Development Grants (DIDG) program, bringing the current total grant allocation to more than $51 million.

Awarded through the program to date across four delivery streams — Exports, Skilling, Security and Sovereign Industrial Priorities — the DIDG program represents a total investment of $170 million towards expanding and modernising Australia’s sovereign defence industrial base.

Through the program, defence industry businesses across the country will expand export opportunities and improve global competitiveness. They will strengthen cyber, physical and personnel security to meet Defence standards and deliver technical training to grow Australia’s skilled defence workforce.

This latest round of grants will also continue to drive investment in advanced manufacturing, aligned with sovereign defence priorities such as submarines, aerospace, guided weapons, explosive ordnance and advanced technologies.

The grants include eight projects funded by the Australian Submarine Agency, totalling $2.9 million, to support the AUKUS nuclear-powered submarine program.

The DIDG program continues to provide matching grants of up to 50% to eligible Australian defence suppliers, with applications open year-round until 2028.

“These new grants will help local companies scale up, modernise and grow, ensuring our nation has the industrial strength and skills base to meet future challenges,” said Minister for Defence Industry Pat Conroy. “Every one of these projects contributes to a stronger, more resilient and sovereign defence industry — creating jobs, driving innovation and building a future made in Australia.”

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