The Sovereign Industrial Capability Priority (SICP) and Capability Improvement Grants Programs are concluding for this financial year, Defence has announced.
In October 2020, in acknowledgment of the challenges posed by the Covid-19 pandemic, the government announced an additional $24 million would be provided over two financial years to the SICP grants and other industry support grants. Co-contribution ratios were also lowered.
As a result, grant applications almost doubled during the first seven months of the economic stimulus period.
According to Defence, the strong response from industry has brought the programs close to the limit of their funding allocations, meaning the SICP and Capability Improvement Grants Programs are coming to a close for this financial year.
Defence says that applications that have already been submitted will be considered over the coming weeks, however, no new applications will be accepted.
"The Government recognises that developing an industrial base with the capability, posture and resilience to meet our future defence capability needs is a long-term endeavour and we are exploring options for future support to small and medium sized businesses that seek to deliver world-class capability for our Defence Force," the Department said in a statement.
The Skilling Australia’s Defence Industry (SADI) grant program remains active. Under SADI, SMEs can apply for grants of up to $500,000 for skilling needs, and industry associations can apply for grants to facilitate training for defence industry SMEs to help them meet their Defence capability requirements.