More than $22m awarded to Australian businesses to strengthen defence industry capability

Industry
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Minister for Defence Industry Pat Conroy has announced that 60 Australian businesses have received more than $22 million as part of the latest round of the Defence Industry Development Grants program.

Minister for Defence Industry Pat Conroy has announced that 60 Australian businesses have received more than $22 million as part of the latest round of the Defence Industry Development Grants program.

The Defence Industry Development Grants (DIDG) program is part of the Australian government’s effort to support and enhance the advanced manufacturing, sovereign capability and skilled jobs and industrial base across the country.

The funding, allocated between November 2025 and June 2026, will help Australian defence suppliers expand production capacity, modernise facilities and develop critical technologies aligned with Australia’s priority defence requirements.

 
 

The successful recipients are delivering capabilities across key areas, including submarines, aerospace, guided weapons and explosive ordnance, communications systems, advanced materials, robotics and cyber security.

Minister Conroy said the latest funding round marked a significant milestone in the government’s efforts to strengthen Australia’s defence industrial base.

“Awarding more than 200 grants in under two years is a significant milestone and demonstrates the Albanese government’s commitment to backing Australian defence industry and Australian jobs,” Minister Conroy said.

Among the businesses receiving support are companies developing technologies and manufacturing capabilities considered critical to Australia’s future defence needs.

Western Australian company Aurora Labs will receive $1 million to acquire an advanced laser powder bed fusion machine to support the manufacture of propulsion systems.

Victorian-based Cop-A-Mate Products will also receive $1 million to establish local manufacturing capability for mission-critical land vehicle armour and exhaust components, while NSW company Lintek will receive $1 million to upgrade its printed circuit board production facility with advanced manufacturing equipment.

South Australian space company Southern Launch has been awarded $1 million to acquire range safety and communications infrastructure to support defence-related testing and evaluation activities.

Other recipients include Gurit Australia in Queensland, which will receive $559,852 to establish local manufacturing capability for bespoke subsea buoyancy systems supporting the Ghost Shark autonomous underwater vehicle program.

Tasmanian company Currawong Engineering will receive $184,659 to purchase a vertical machining centre to enhance production of aerospace-grade electronic speed controllers and engines, supporting growing domestic and export demand.

In the Northern Territory, Micca Holdings will receive $62,419 to purchase advanced laser cutting and welding equipment to increase naval sustainment capability in northern Australia.

The Defence Industry Development Grants program provides competitive matching grants of up to 50 per cent for eligible Australian defence suppliers, helping businesses grow, innovate and contribute to national security priorities.

Since the program commenced in June 2024, total investment directly supporting Australian businesses has now exceeded $73 million. The funding is supporting hundreds of jobs nationwide while strengthening Australia’s sovereign industrial base in line with the 2026 National Defence Strategy.

“These investments are helping local businesses to grow their capability, modernise operations and compete globally while delivering the sovereign capabilities our Australian Defence Force needs now and into the future,” Minister Conroy said.

Delivered across four streams, exports, skilling, security and Sovereign industrial Priorities, the program supports companies to expand into new markets, improve workforce capability, strengthen security practices and invest in advanced technologies.

Minister Conroy said the initiative was helping create a more resilient and capable defence industry.

“By supporting skills, manufacturing and security across the country, we are building a stronger, more resilient defence industry and a future made in Australia,” he said.

More information on the DIDG program and the full list of grants awarded in the latest rounds are available here. Applications remain open year‑round until 2028, ensuring Australian businesses can continue to invest with confidence and help the country to build a more resilient and capable industrial base.

Stephen Kuper

Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.

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