Defence Industry Development Grants Program

Defence Industry Development Grants — Skilling

Supports Australia's defence sector by funding technical training and professional upskilling for strategic capability teams.

⚠ This may reflect a past cycle — verify the current call on the funder's site.

The Defence Industry Development Grants – Skilling stream is one of four streams within the Australian Government's Defence Industry Development Grants Program (DIDGP), administered through the DISR Business Grants Hub at business.gov.au with policy set by the Department of Defence. The Skilling stream specifically funds training and upskilling activities in priority defence-related technical and professional areas, with the objective of strengthening the workforce capability of Australia's sovereign defence industry. Awards range from $5,000 to $250,000, covering up to 50% of eligible project expenditure, with projects required to complete by 31 March 2028.

Eligible applicants are Australian SMEs with fewer than 200 employees and a registered ABN — notably, the Skilling stream is the only DIDGP stream that also permits Defence Industry Associations to apply. For-profit corporate structure is required; individuals, partnerships, universities, and government bodies are ineligible. Applicants must be incorporated in Australia, registered for GST, hold an Australian financial institution account, and be non-income tax exempt. The round closed on 30 May 2026. All applications must score at least 65% across assessment criteria to be ranked as meritorious.

For applicants seeking to win this grant, the strongest positions are those that can demonstrate a direct, evidence-based link between the proposed training program and identified gaps in Australia's defence workforce capability, particularly in areas aligned with the government's current sovereign industrial priorities. The 50% co-contribution requirement means applicants must show matching internal investment, and the project completion deadline of March 2028 constrains scope. Defence Industry Associations competing in this stream should emphasise breadth of member impact to maximise reach and score on the reach criterion.