The Federal Government has announced $21 billion of new funding initiatives under the Future Made in Australia Act strategic framework.
Five industries are targeted by the budget including renewable hydrogen, critical minerals processing, green metals, low carbon liquid fuels and clean energy manufacturing, including battery and solar panel supply chains.
Initiatives apart of Treasurer Jim Chalmers’ 2024-2025 Federal Budget include:
- A new $7 billion critical minerals value-adding Production Tax Credit (PTC).
- $3.2 billion additional funding for ARENA technology commercialisation.
- A $6.7 billion hydrogen production tax incentive and $1.3 billion of additional hydrogen headstart funding.
- $209m into the Net Zero economy authority.
- $168m to prioritise approval decisions for renewable projects of national significance.
- $500m Battery Breakthrough Initiative.
- $14m to strengthen high-quality critical minerals benchmarks with trade partners.
- $179m in additional employment & skills supports for regions.
- $56m in Building Women’s Careers program.
- $91m to accelerate the development of the clean energy workforce and to expanding the New Energy Apprenticeship Program.
- $777m for strong First Nations workforce participation & development.
On top of the $21 billion is the funding of $1 billion to Solar SunShot and $466 million to PsiQuantum funding.
Director of Climate Energy Finance Tim Buckley said it was excellent to see the $21 billion down payment.
“Tonight’s budget shows a government that understands both this imperative to act to transition Australia to its future as a clean, green superpower and the opportunity cost and risks of not acting to secure Australia’s place in the new net zero world economy, said Buckley.
The implementation of the Future Made in Australia Act (FMIA) will be guided by a targeted framework.
Spearheading the act is a ‘net zero transformation’ stream, where Australia has grounds to build enduring comparative advantage.
There will also be an ‘economic security and resilience’ stream, which will identify sectors that are critical to our resilience and vulnerable to supply disruptions.
The Government will establish a ‘new front door for investors’ with major investment proposals related to Future Made in Australia to make it simpler to invest in Australia and globally.
Buckley said the budget is reflective of Australia’s response to a global energy transition that is speeding up.
“The world is in a rapidly accelerating technology, trade and finance decarbonisation race to the top as the global energy transition speeds up.
This is Australia’s biggest investment, employment, and export opportunity in a century to reorient from our fossil fuel-reliant past, but we clearly needed this budget to respond strategically, proportionally and fast, which it has done,” said Buckley.
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