Defence Industry Development Grants, stream by stream.
Up to half a project's cost for Australian defence SMEs, in four streams. The program is changing over, so the dates matter.
Where it stands on 15 October 2026
- The Sovereign Industrial Priorities stream is temporarily closed.
- The Skilling stream closes in October.
- The Exports and Security streams close their current batch at 11:59 pm on Saturday 31 October 2026, AEDT on Defence's page.
- New guidelines are expected by 3 November 2026, when all four streams reopen.
We'll update this guide when the new guidelines are out.
What it funds
The program funds small and medium businesses to build Australia's sovereign defence capability. Grants cover up to 50% of eligible costs, from $5,000 to $1 million depending on the stream.
The 2026 Defence Industry Development Strategy added $80 million through to 2030. That brings total investment in the program to around $250 million.
The four streams
- Sovereign Industrial Priorities, $50,000 to $1 million. Manufacturing plant and equipment used directly for programs aligned to the Sovereign Defence Industrial Priorities.
- Exports, $15,000 to $250,000. Help getting past the barriers to exporting.
- Skilling, $5,000 to $250,000. The skills the defence industry needs most, from trades to professional roles. Defence industry associations can apply to this stream as well.
- Security, $10,000 to $100,000. Improving and keeping up your security, in line with the Defence Industry Security Program.
The Security stream can't pay for a DISP application, or for advice on one. How DISP membership works.
Who can apply
You need to be a small or medium business located in Australia, with fewer than 200 employees. You also need an ABN, GST registration and an Australian bank account, and you can't be exempt from income tax.
The business has to be incorporated in Australia, a company limited by guarantee, or an incorporated trustee for a trust. Individuals, partnerships, unincorporated associations and overseas organisations can't apply.
Under the current guidelines, the project has to be done in Australia and finished by 31 March 2028. That may change with the new guidelines.
How applications are judged
An application has to score at least 65% against every criterion to be considered meritorious. Those are then ranked on the first criterion, and the program delegate makes the final decision.
Defence says a competitive application addresses every criterion and includes every mandatory attachment. It also shows a strong link to one or more of the Sovereign Defence Industrial Priorities.
Product development and prototyping are likely to be ineligible. So are research and development, and manufacturing inputs such as non-recurring engineering.
Submarine suppliers
The government has added dedicated nuclear-powered submarine funding, inside the existing streams rather than as a stream of its own. It's for SMEs with real potential to make priority products for those supply chains, such as DIVQ participants.
If you're applying for a submarine opportunity, you can ask the Australian Submarine Agency for a letter of support at [email protected].
How to apply
Applications go through the business.gov.au portal, where you set up an account and choose your stream. They're assessed in batches, and you can apply any time a stream is open.
The business.gov.au help line is 13 28 46.
Sources
- Department of Defence, Defence Industry Development Grants Program (opens in a new tab)
- business.gov.au, Defence Industry Development Grants Program (opens in a new tab)
- Department of Defence, 2026 Defence Industry Development Strategy (opens in a new tab)
- Australian Submarine Agency, Grants and funding (opens in a new tab)
Every source was read on 15 October 2026. Ironpeak Consulting is independent. It has no affiliation with, and no endorsement from, the Department of Defence or the Australian Submarine Agency.
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