The Australian Government will seek proposals from Australia’s private capital market for potential co-investments in local industry and businesses developing defence and dual‑use advanced capabilities. It is hoped this will further drive growth and innovation in Australia’s defence industry.
Minister for Defence Industry, Pat Conroy, made the announcement at ADM Congress 2026.
“Australia’s current strategic environment tells us that we need to do all we can to drive investment in new capabilities," Conroy said.
“Joint investment between the government and private sector has enormous potential to further unlock Australian jobs and innovation."
The Government has increased funding for the defence force and has been making record investments in our defence industry.
“In developing potential options for co-investment, the government is looking for ways to catalyse growth of Australia’s innovation ecosystem, sovereign industry capability and exports potential, all while putting money back into Australian pockets," Conroy stated.
“The Government will explore options to partner with private capital to invest in eligible Australian small and medium enterprises that are developing the capabilities we need.”
These investments will target the advanced capabilities and exports of tomorrow, including cyber, artificial intelligence and autonomy, electronic warfare, quantum technologies, and undersea warfare.
Investing in advanced capabilities that have export potential helps build a bigger defence industry and supply chain, that is hopefully more resilient and better for local businesses.
The Request for Expressions of Interest has now been opened on AusTender to identify one or more suitable private capital partner/s to potentially manage the investment.
The size of investment that may be considered would be for a co-contribution of up to $500 million from the Government, with the decision to invest and final terms, to be determined in partnership with the successful fund manager/s and subject to further Government consideration.
Once selected by Defence, the successful firm or firms will work with Government to develop the investment proposal further for the Government’s consideration.