The federal government has decided to vastly increase the share it will pay of projects to improve the capabilities of defence industries and develop sovereign capabilities.
From 12 November the government will increase its contribution towards projects under three key grants schemes which today are shared 50:50 by government and by industry itself.
Co-contributions will change for:
- New applicants for a Capability Improvement Grant or a Defence Global Competitiveness Grant will only be required to fund 20 per cent of the value of their eligible project
- And new applicants for a Sovereign Industrial Capability Priority Grant will only be required to fund 30 per cent of the value of their eligible project.
But wait, there’s more!
Not only do companies have to pay less to further their project, but maximum grant values will increase:
- Sovereign Industrial Capability Priority Grants will increase from $50,000-$1 million to $70,000-$1.4 million
- Capability Improvement Grants will increase from $2,500-$150,000 to $4,000-$240,000
- and Defence Global Competitiveness Grants will increase from $15,000-$150,000 to $24,000-$240,000.
Defence industry minister Melissa Price said: “Small and medium sized business across Australia are doing it tough, which is why this Government is committed to making it easier for these companies to access funding support.
“These changes are part of the Morrison Government’s broader investment initiatives across the defence portfolio to support economic recovery.
“This builds on our announcement earlier this month that we are investing an extra $24 million in defence industry grants programmes as part of our commitment to build a robust, resilient and internationally competitive defence industry.”
Price said defence industry was critical not only to delivering capability outcomes for Defence, but also in assisting the nation’s economic recovery.
Picture: Melissa Price
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