top of page
  • Writer's pictureHaines Consulting Group

Defence Sovereign Industrial Capability Priority Grant

Defence Sovereign Industrial Capability Priority Grant - Haines Consulting Group

Update: This grant has been replaced by The Defence Industry Development Grants Program (the program) which will award grants over four years from 2024-25 to 2027-28. The program was announced as part of the Defence Industry Development Strategy. Learn More

The Department of Defence is pleased to support the Defence Sovereign Industrial Capability Priority Grant, a funding initiative aimed at supporting Australian businesses in building industrial capabilities that align with Defence's Sovereign Industrial Capability Priorities. This grant presents a significant opportunity for small to medium-sized businesses to enhance their capabilities and contribute to the nation's defence industry.

Under the Defence Sovereign Industrial Capability Priority Grant, eligible businesses can receive grants ranging from $50,000 to $1 million, covering up to 50% of the project costs. The grant period extends for a maximum of 30 months, and each recipient is eligible for a total funding cap of $3 million within a three-year period.

To qualify for this grant, businesses must possess an Australian business number (ABN) and be either a company incorporated in Australia or an incorporated trustee on behalf of a trust. The eligibility criteria further include having fewer than 200 employees and meeting the requirements outlined in the grant opportunity guidelines.

The supported project activities can encompass a wide range of initiatives, including the acquisition, lease, construction, installation, or commissioning of capital equipment. Additionally, businesses may invest in specialist software to enhance cyber security, engage in design and engineering activities, or provide workforce training and accreditations to bolster their capabilities.

Defence's Sovereign Industrial Capability Priorities form the foundation for this grant program. These priorities are critical capabilities that Defence relies on to fulfil its core objectives, and they must be developed or supported by Australian industry. The Priorities are regularly reviewed and updated by Defence, ensuring their alignment with the Integrated Investment Program and the evolving needs of the Defence mission.

Minister for Defence Industry Pat Conroy said “By investing in businesses, we are investing and securing more jobs and opportunities for our Defence Industry. These grants provide Australians with the opportunity to deliver cutting-edge manufacturing and maintenance capabilities for our Australian Defence Force and contribute to our national defence requirements. The Defence Global Competitiveness and Sovereign Industrial Capability Priority grant programs are enhancing the ability of Australian businesses to manufacture products that will serve Defence needs both here and abroad.”

To apply for the grant, interested businesses are encouraged to carefully review the grant opportunity guidelines, which provide detailed information on the eligibility criteria, assessment processes, reporting requirements, and review mechanisms.


This program is open for applications throughout the year. The assessment panel assess batched applications regularly throughout the year.

What do you get?

A grant of $50,000 to $1 million for up to 50% of the cost of a project that builds capabilities aligned with Defence’s Sovereign Industrial Capability Priorities. The maximum grant period is 30 months. Grant funding is capped at $3 million in a 3-year period per recipient.

Who is this for?

Small to medium-sized businesses with an Australian business number (ABN). The business must be a company incorporated in Australia or and incorporated trustee on behalf of a trust.

How it works

You need to contribute 50% of the eligible project value.

Project activities can include:

  • buying, leasing, constructing, installing or commissioning of capital equipment including specialist software to enhance cyber security

As they relate to the above activities, this can also include:

  • design, engineering and commissioning activities

  • workforce training and accreditations.

The Sovereign Industrial Capability Priorities are described on the Department of Defence website which includes a SICP Fact Sheet listing the priorities. Defence reviews the priorities periodically and publishes updates on its website.


What are the eligibility criteria?

To be eligible your business must:

  • have fewer than 200 employees

  • have an Australian business number (ABN)

  • be a company incorporated in Australia or be an incorporated trustee on behalf of a trust

Also, 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 form that confirms you can fund your share of the project costs

Who is excluded?

You are not eligible to apply if you are:

  • an individual

  • a partnership

  • a trust (but an incorporated trustee may apply on behalf of a trust)

  • a government body at any level (including government business enterprise)


Sovereign Industrial Capability Priorities are capabilities that are critical to Defence and must be developed or supported by Australian industry. This means Australia must have access to, or control over the skills, technology, intellectual property, financial resources and infrastructure that underpin the Priorities. The Priorities represent a subset of the industrial capabilities that Defence relies on to deliver its core objectives requirements and will be managed closely across defence and industry planning. Sovereign Industrial Capability Priorities are those ` operationally critical to the Defence mission; ` priorities within the Integrated Investment Program over the next three to five years; or ` in need of dedicated monitoring, management, and support due to their industrial complexity, Government priority, or requirements across multiple capability programs.

Defence’s Sovereign Industrial Capability Priorities are (in no particular order):

  1. Combat clothing survivability and signature reduction technologies

  2. Munitions and small arms research, design, development and manufacture

  3. Land combat and protected vehicles and technology upgrades

  4. Aerospace platform deeper maintenance and structural integrity

  5. Collins class submarine maintenance and technology upgrade

  6. Continuous shipbuilding program (including rolling submarine acquisition)

  7. Enhanced active phased array and passive radar capability

  8. Advanced signal processing capability

  9. Surveillance and intelligence

  10. Test, evaluation, certification and systems assurance

  11. Robotics, autonomous systems, and artificial intelligence

  12. Precision-guided munitions, hypersonic weapons, and integrated air and missile defence systems

  13. Space

  14. Information warfare and cyber capabilities


Haines Consulting Group is a management consultancy firm specialising in business strategy, growth, government grants and new venture developments. If you need any assistance with a grant submission please contact us now for a confidential conversation.


99 views0 comments


bottom of page