The facility replaces and broadens the former Defence Export Facility, moving the policy beyond export financing alone. Its expanded mandate will include projects that strengthen sovereign industrial capability and reduce reliance on overseas supply.
Funding will be available through loans, bonds, guarantees and equity. Companies will be able to seek support for new export opportunities, facility expansion or upgrades, and the development of new defence capabilities.
The government said the financing model would be designed to attract private capital alongside public funding. It will also complement existing Commonwealth financing mechanisms rather than operate as a standalone source of industry support.
For smaller defence suppliers, the policy is intended to provide faster and more flexible access to finance. The government identified small and medium-sized enterprises as a particular focus because they often require timely funding to expand capacity or pursue contracts.
Export Finance Australia will administer the facility through the National Interest Account. The structure places the programme within an existing government export-finance institution while expanding its role in domestic defence-industry development.
“The Defence Industry Growth Facility responds to the needs of our defence sector,” Trade and Tourism Minister Don Farrell said. “We are supporting our world-class defence businesses to thrive in international markets while delivering sovereign defence capabilities at home.”
“The idea is that we are spurring on the private sector too, crowding in investment to support our defence sector,” Farrell said. “By backing the Australian defence industry, we are meeting the demands of Australian national security and supporting Australian jobs and businesses.”
“Sovereign defence capability is essential for our nation’s security,” Defence Industry Minister Pat Conroy said. “The Defence Industry Growth Facility will build self-reliance and help attract private finance to the defence sector.”
Conroy said the programme would also support domestic innovation and export-led industrial growth. “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.”
