Defence Industrial Capability Plan

The 2018 Defence Industrial Capability Plan (the Plan) released on 23 April outlines the Government’s long-term vision to build and develop a robust, resilient and internationally competitive Australian defence industry base that is able to help meet defence capability requirements.

The Plan sets out a strategy for Australia’s defence industry. The Government is investing in our defence industry and ensuring that it is positioned to support delivery of the Integrated Investment Program (IIP) over the next decade.

The Plan includes the Sovereign Industrial Capability Assessment Framework and introduces the initial Sovereign Industrial Capability Priorities.

The Plan acknowledges that as Australia builds its defence capability, we must also grow our defence industrial capability. By 2028, Australia will require a larger, more capable and prepared Australian defence industry that has the resident skills, expertise, technology, intellectual property and infrastructure to:

  • Enable the conduct of ADF operations today
  • Support the acquisition, operation and sustainment of future defence capability;
  • Provide the national support base for Defence to meet current needs and to surge if Australia’s strategic circumstances require it.

The Defence Industry Policy Statement released with the 2016 Defence White Paper acknowledges the fundamental contribution that Australian industry provides to defence capability.

The Plan recognises the strategic importance of Defence and defence industry sovereignty to Australia's defence and national security.

The Government’s defence strategy is supported by increased defence funding, which will grow to two per cent of Australia’s Gross Domestic Product by 2020-21, enabling more than $200 billion of new investment in our defence capabilities over the next decade.

The Defence White Paper is a key part of the Government’s commitment to a safe and secure Australia. The Australian people can have confidence that this Government will ensure we can defend our nation and protect our interests today and into the future.

The Government is committed to ensuring Australian industry is positioned to meet Defence’s future requirements and to maximise economic growth and high-tech jobs in the sector. The Government will continue to maximise Australian industry involvement in our defence capability planning, acquisition and sustainment, building the sovereign defence industrial base we need to achieve our strategy and capability goals.

The Plan is a key part of the Government’s commitment to achieve an Australian defence industry that has the capability, posture and resilience to help meet Australia’s defence needs over the decade to 2028.

The Plan brings together all of the levers available to defence industry, from advice to financial support, to realise the Government’s vision. The Plan allocated up to $17 million in annual funding from 2018-19 to support Sovereign Industrial Capability Priority grants.

The grants were delivered by the former Centre for Defence Industry Capability (now Office of Defence Industry Support).

Since its launch in 2018, the Sovereign Industrial Capability Priority Grants Program supported opportunities to drive Australian innovation, making our small businesses more competitive and our supply chains more secure. Defence approved our 100 Sovereign Industrial Capability Priority Grant applications across Australia to the value of $63.9 million. 

In October 2020, to help mitigate the impacts of the Covid-19 pandemic, the Australian Government announced an additional $24 million would be provided to the Sovereign Industry Capability Priority grants and other industry support grants, bringing the total to $58 million through to the end of FY2021/22.

In October 2021, a decision was made to close the program due to the significant volume of applications received in the preceding months.