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Albanese Government backs Australian defence industry and local jobs with $170 million grant program

The Hon Pat Conroy MP
Minister for Defence Industry
Minister for Pacific Island Affairs

The Albanese Government has awarded a further 40 grants to support Australian businesses and back Australian jobs.

These latest grants, totalling over $17.3 million, will deliver priority defence capabilities, support local manufacturing and strengthen Australia’s sovereign defence industry.

Awarded under the $170 million Defence Industry Development Grants program, these grants will fund projects that enhance Australia’s defence manufacturing capabilities, export competitiveness and technical skills development.

These additional grants build on the 58 grants announced in May 2025 and continue delivering on the Albanese Government’s commitment to grow Australia’s defence industrial base.

The newly funded projects will support jobs and innovation right across the country and help businesses scale up and modernise manufacturing in areas critical to Australia’s sovereign defence capability.

The projects include six that are funded by the Australian Submarine Agency at a total value of $3.6 million to uplift Australia’s industrial base and support the AUKUS nuclear-powered submarine program.

The competitive DIDG program provides matching grants of up to 50 per cent, and it is continuously open to receive applications from eligible defence suppliers until 2028.

More information on the Defence Industry Development Grants program can be found at: Defence Industry Development Grants Program.

Quotes attributable to Minister for Defence Industry, the Hon Pat Conroy MP:

“We are backing Australian businesses and backing Australian workers to deliver the capabilities our Defence Force needs – now and into the future.

“From the west coast to the east coast, the Albanese Government is building a stronger and more resilient defence industry by investing in Australian innovation, skills and manufacturing.

“I look forward to visiting many of these businesses in the years to come and seeing their work up close and in action.”

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