Melbourne-based veteran-owned company SORD Australia has been contracted to develop concussion reduction helmet for the Australian Defence Force (ADF).

Under the A$338,000 ($215,613) Defence Innovation Hub contract awarded by the Australian Government, the new technology will be used to provide improved protection to Australian soldiers.

The concussion reduction helmet aims to minimise the risk of traumatic brain injuries caused by events such as blunt trauma, ballistics and blasts.

Australian Minister for Defence Industry Melissa Price added: “This technology has the potential to enhance individual safety and reduce the long term effects of concussive injuries on men and women in the Australian Defence Force.

“SORD Australia is a fantastic example of how a small veteran-owned business can make a significant impact to our $200bn defence industry.”

The Defence Innovation Hub initiative seeks to bring together industry and defence to develop technologies from concept through to development and introduction to service.

The initiative was launched in December 2016 and aims to invest nearly A$640m ($498.67m) between 2025-26.

Price added: “The Morrison government continues to invest in innovation to ensure a smarter and stronger Australian Defence Force by supporting Australian small and medium enterprises to develop technology useful to the warfighter.”

BAE Systems Australia won the first defence prime contract under the initiative.

So far, the defence initiative has awarded $67m in contracts in 2019.