Yesterday evenings Federal Budget announcement saw the Australian Government make a range of investments into Australia’s manufacturing industry.
Providing his perspective on the recent Federal Budget, RSM Australia National Manufacturing Leader, Louis Quintal, believes the budget represents a continued Government focus on fostering growth and resilience within the domestic manufacturing sector through their flagship ‘Future Made in Australia’ Act.
“Announced in last year’s Federal Budget as a $22.7 billion commitment over the next ten years, the next installation of the Government’s flagship agenda sees an increased focus on cleaner, cheaper energy, greater investment into infrastructure, and support for SMEs,” said Quintal.
Below are the commitments Quintal believes the manufacturing sector would welcome and that build on the Government’s existing $22.7 billion Future Made in Australia commitment.
- Investment into improved regional infrastructure including $17.1 billion over ten years for road and rail projects to improve the efficiency and resilience for manufacturers and their transport and logistics networks.
- Investment of $20 million to support Australian producers through the Buy Australian Campaign, aiming to encourage consumers to buy Australian made products.
- Fiscal support for green metals through the $2 billion Green Aluminium Production Credit to support Australian aluminium smelters to transition to renewable energy, and a commitment of $1 billion to Green Iron Investment Fund to accelerate the development of this new industry.
- Securing the future of steelmaking in Whyalla by working with the South Australian Government to provide immediate support for the Whyalla Steelworks, local business creditors and the longer-term transformation of the Steelworks.
- Investment of $13.7 billion in hydrogen and critical minerals production tax incentives and has allocated $1.5 billion in support for priority areas through the Future Made in Australia Innovation Fund including:
- $750 million for green metals.
- $500 million for clean energy technology manufacturing capabilities.
- $250 million for low carbon liquid fuels.
- Fiscal support for manufacturers to reduce energy costs through subsidies.
- Fiscal support of $8 billion additional investment in renewable energy and low emissions technologies through a $2 billion expansion of the Clean Energy Finance Corporation.