The Australian Government has announced a $US 3 billion (approx. A $4 billion) Defence Industry Growth Facility, which will ensure that the Australian defence industry can continue to grow and compete on a global scale.
“Sovereign defence capability is essential for our nation’s security. The Defence Industry Growth Facility will build self-reliance and help attract private finance to the defence sector," Minister for Defence Industry, Pat Conroy, said.
“This is about supporting Australian innovation, unlocking export-driven growth, and accelerating our capacity for producing home-grown capability for a Future Made in Australia.”
Through the new Defence Industry Growth Facility, the Government will provide loans, bonds, guarantees and equity to support new export opportunities, to expand or upgrade facilities, and to develop new capabilities aligned with Defence priorities.
“The Defence Industry Growth Facility responds to the needs of our defence sector. We are supporting our world-class defence businesses to thrive in international markets while delivering sovereign defence capabilities at home," Minister for Trade and Tourism, Don Farrell, said.
“The idea is that we are spurring on the private sector too, crowding in investment to support our defence sector."
The new Facility modernises and expands the scope of the previous Defence Export Facility and will now support projects that prioritise sovereign defence capabilities and self-reliance.
The Government has said it is committed to ensuring the Defence Industry Growth Facility is more flexible and responsive to industry needs, particularly small and medium enterprises that require timely access to finance. It is designed to crowd in private sector finance and complement other Commonwealth financing mechanisms.
The Defence Industry Growth Facility will be administered on the National Interest Account by Export Finance Australia.