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The Western Australian government has announced the AUKUS SME Readiness Fund, set to boost local businesses in manufacturing for AUKUS.
The Western Australian government has launched the AUKUS SME Readiness Fund, aiming to provide small and medium-sized enterprises (SME) in the state with funding for local jobs as AUKUS ramps up production.
The $2 million grant will see successful SME applicants across WA being granted up to $100,000 to secure a competitive manufacturing role in the production of AUKUS Pillars 1 and 2.
WA’s defence industries minister, Paul Papalia, said the fund will “open doors to opportunities for WA businesses and help grow the sector”.
Responding to the growing defence market in the UK and the US, WA Defence is on track to becoming the second-largest economic industry in the state.
“WA’s defence industry is set to be the state’s next economic powerhouse, providing a buffer to the cyclical nature of the resources sector.”
Over four years, the fund will enable local businesses to qualify for supply chain entry with grants of up to 50 per cent of their total cost of production. It aims to provide more jobs to the state, utilise local materials and manufacturing efforts, and support the state’s economy through growing SMEs.
“By making more things in WA, we create more local jobs and diversify our economy.”
Along with the announcement of the fund, the WA state government is beginning its fourth rotation of the Defence Ready Initiative, a grant program that SMEs can apply for to improve their local and national capabilities as well as enter the defence supply and manufacturing industry globally.
The announcement of the fund follows a $US33 million deal with WA engineering company VEEM and US-based Northrop Grumman, with VEEM set to supply parts and material for Virginia Class nuclear-powered submarines, an asset Australia is set to receive from 2032 under the AUKUS partnership.
