The AUKUS agreement represents a prime opportunity for Western Australian businesses, particularly those in the Rockingham/Kwinana area, to position themselves at the forefront of a transformative economic shift.
With billions of dollars in government investment on the horizon, local businesses stand to benefit significantly from integration into global supply chains.
This moment is critical for WA companies to diversify beyond traditional sectors and capitalise on access to overseas markets, all while enjoying tariff-free trade benefits.
About the AUKUS Deal
The AUKUS deal is a trilateral security partnership between Australia, the United Kingdom, and the United States designed to enhance regional security and support technological and military development. This partnership is expected to strengthen the security architecture in the Indo-Pacific region and deepen cooperation among the three nations.
While the primary focus of the deal is defence, including nuclear-powered submarines and advanced capabilities, the agreement presents significant business opportunities for Australian companies beyond traditional defence sectors.
New pathways for businesses to integrate into a global supply chain
With significant investment pouring into the manufacturing sector, particularly in the Rockingham/Kwinana area of Western Australia, the Federal government is working to ensure that local businesses are integrated into the global supply chain.
By participating in the AUKUS Trilateral Supply Chain program, Australian businesses can gain tariff-free access to lucrative overseas markets such as the US and Europe, opening doors to new growth opportunities.
This marks a significant pivot point for businesses, particularly those affected by the mining economic cycle, to diversify and explore new opportunities. From robotics and advanced manufacturing to technology and engineering, there are countless ways to get involved.
Support for businesses to pivot and transition
Moreover, the government is supporting local companies with financial incentives, grants, training opportunities, and dollar-for-dollar equipment investments to help them transition and thrive in this new landscape.
One such example is the Defence Industry Development Grant (DIDG) Program. The DIDG Program provides up to $39 million annually over the next four years (from 2024-25 to 2027-28) to support eligible Australian small and medium businesses to build Australia’s sovereign capability, global competitiveness, technical superiority and national security across four program streams:
- Sovereign Industrial Priorities
- Exports
- Security
- Skilling.
You can find more information about the DIDG, including stream details, submission deadlines and how to apply, here.
Exploring opportunities within the AUKUS Deal
Our upcoming articles in this series will explore these opportunities in more detail, including specific grants, training programs, and practical steps for businesses to take advantage of the AUKUS deal alliance and pivot toward new opportunities.
By closely examining these opportunities, we aim to provide comprehensive insights to empower WA businesses to make informed decisions and capitalise on the potential benefits offered by the AUKUS deal.
Additionally, we will explore the potential impact on various industries and offer actionable strategies to help businesses navigate the evolving landscape.
Get started with Ledge Finance
The Ledge team is here to assist WA businesses in navigating this transition, including accessing government grants and other supports. Contact us today for tailored advice and support.
Please note that the information provided here is general and does not constitute financial, tax, or other professional advice. You should consider whether the information is appropriate for your needs and seek professional advice before making any decisions.
