2024-2025 Federal Budget - Energy & Resources

Energy & Resources

Future Made in Australia - Making Australia a Renewable Energy Superpower

The Government will provide an estimated $19.7 billion over ten years from 2024-25 to accelerate investment in Future Made in Australia priority industries, including renewable hydrogen, green metals, low-carbon liquid fuels, refining and processing of critical minerals and manufacturing of clean energy technologies including in solar and battery supply chains. Funding will catalyse clean energy supply chains and support Australia to become a renewable energy superpower. Funding includes:

• An estimated $8.0 billion over ten years from 2024-25 (and an average of $1.2 billion per year from 2034-35 to 2040-41) to support the production of renewable hydrogen, including:
  • A Hydrogen Production Tax Incentive from 2027-28 to 2040-41 to producers of renewable hydrogen to support the growth of a competitive hydrogen industry and Australia's decarbonisation, at an estimated cost to the budget of $6.7 billion over ten years from 2024-25 (and an average of $1.1 billion per year from 2034-35 to 2040-41)
  • $1.3 billion over ten years from 2024-25 (and an average of $151.6 million per year from 2034-35 to 2038-39) for an additional round of the Hydrogen Headstart program to bridge the green premium for early-mover renewable hydrogen projects
  • $17.1 million over four years from 2024-25 (and an additional $2.5 million in 2028-29) to deliver the 2024 National Hydrogen Strategy, including hydrogen infrastructure planning, social license and industry safety training and regulation.
• $1.7 billion over ten years from 2024-25 for the Future Made in Australia Innovation Fund, to be administered by the Australian Renewable Energy Agency, to support innovation, commercialisation, pilot and demonstration projects and early-stage development in priority sectors, including renewable hydrogen, green metals, low-carbon liquid fuels and clean energy technology manufacturing such as batteries.
• $20.9 million over four years from 2024-25 (and $1.2 million per year ongoing) to undertake further consultation on incentives to support the production of, and demand for, low-carbon liquid fuels, as well as the development of a low-carbon liquid fuels certification scheme through the Guarantee of Origin Scheme.

Budget Speech p 10
Budget Paper No 2 p 67
Budget Overview p 32
Regional Ministerial Budget Statement p 25
A Future Made in Australia p 4
Media Release

Energy Bill Relief Fund - Extension and expansion

The Government will provide $3.5 billion over three years from 2023-24 to extend and expand the Energy Bill Relief Fund to provide a $300 rebate to all Australian households and a $325 rebate to eligible small businesses on 2024-25 bills to provide cost of living relief.

Budget Speech p 15
Budget Paper No 2 p 179
Budget Overview p 14
Regional Ministerial Budget Statement p 99
Easing cost-of-living pressures p 1
Media Release

Future Made in Australia - Investing in innovation, science and digital capabilities 

The Government will provide $1.7 billion in funding over ten years from 2024-25 for investments in innovation, science and digital capabilities to support a Future Made in Australia. Funding includes:

• $566.1 million over ten years from 2024-25 (and an average of $111.8 million per year from 2034-35 to 2058-59) for Geoscience Australia to map Australia's national groundwater systems and resource endowments to increase industry investment and identify potential discoveries of all current critical minerals and strategic materials. This extends the terminating Exploring for the Future program, reshaping it as the Resourcing Australia's Prosperity program
• $466.4 million for a financing package of equity and loans provided by Export Finance Australia on the National Interest Account to PsiQuantum Pty Ltd to support the construction and operation of quantum computing capabilities and associated investment in industry and research development in Brisbane, as part of a joint investment with the Queensland Government. Additional funding of $27.7 million over 11 years from 2023-24 will also be provided for the Department of Finance, the Department of Foreign Affairs and Trade, the Department of Industry, Science and Resources and the Department of the Treasury to manage and provide oversight of this investment. The financial implications of the financing package are not for publication (nfp) due to commercial sensitivities
• $145.4 million over two years from 2024-25 to maintain the National Measurement Institute's core scientific measurement and ICT capabilities and to support current site operations and future planning.

Budget Speech p 10
Budget Paper No 2 p 66
Budget Overview p 30
A Future Made in Australia p 6
Media Release 

Net Zero Economy

The Government will provide $399.1 million over five years from 2023-24 (and an additional $616.8 million from 2028-29 to 2034-35 and $93.4 million per year ongoing) in additional resourcing for the Net Zero Economy Authority (the Authority), the Department of Employment and Workplace Relations, and the Fair Work Commission to promote orderly and positive economic transformation associated with decarbonisation to ensure Australia, its regions and workers realise the benefits of the net zero economy. Funding includes:

• $209.3 million over four years from 2024-25 (and $53.3 million per year ongoing) to expand the Authority to coordinate policy and deliver across government, broker investments that create jobs in regions, and support workers affected by the net zero transition
• $134.2 million over four years from 2024-25 and $377.8 million over the medium term (and $40.1 million per year ongoing from 2035-36) to provide workforce transition support for impacted workers and the broader communities affected by the net zero transition
• $44.4 million over four years from 2024-25 to deliver the Energy Industry Jobs Plan, to assist employees impacted by the closure of relevant coal-and gas-fired power stations to access new employment by supporting job and skills matching and providing onboarding and early retirement incentives to employers
• $1.3 million over four years from 2024-25 for Treasury to develop and publish high-quality guidance on best practices for Australian businesses when developing net zero transition plans.

Budget Speech p 8
Budget Paper No 2 p 159
Budget Overview p 33
A Future Made in Australia p 5
Media Release

Future Made in Australia - Workforce and Trade Partnerships for Renewable Energy Superpower Industries

The Government will provide $218.4 million over eight years from 2023-24 (and $1.3 million per year ongoing) to support a Future Made in Australia through the development of a skilled and diverse workforce and trade partnerships. Funding includes:

• $55.6 million over four years from 2024-25 to establish the Building Women's Careers program to drive structural and systemic change in work and training environments. The program will fund partnerships between training providers, community organisations, employers, and unions to improve women's access to flexible, safe and inclusive work and training opportunities in traditionally male-dominated industries of national priority, including clean energy sectors
• $10.0 million in 2025-26 to establish a National Hydrogen Technology Skills Training Centre, in partnership with the Victorian Government, to promote hydrogen workforce development to support the skilled workforce needs of the growing domestic hydrogen industry

The Government has already provided partial funding for this measure. The cost of this measure will be partially met through funding from the Strategic International Partnerships Investment Stream and savings identified in the Department of Industry, Science and Resources. Partial funding for this measure will be held in the Contingency Reserve pending the finalisation of a selection process for a delivery partner for the National Hydrogen Technology Skills Training Centre.

Budget Speech p 8
Budget Paper No 2 p 72
Budget Overview p 37
Regional Ministerial Budget Statement p 25
Media Release

New Vehicle Efficiency Standard Implementation 

The Government will provide $154.5 million over six years from 2023-24 (and $12.6 million per year ongoing) to implement a New Vehicle Efficiency Standard to support greater choice of fuel-efficient vehicles that will reduce motoring costs and transport emissions. Funding includes:

• $84.5 million over five years from 2024-25 (and $12.6 million per year ongoing) to establish a regulator to administer the New Vehicle Efficiency Standard, including capturing emissions data, establishing a credit trading platform and undertaking monitoring and compliance activities, and to undertake further work to bring Australian vehicle standards into line with those of our peers
• $60.0 million over four years from 2024-25 to support the installation of electric vehicle charging infrastructure at automotive businesses to support the transition to selling and servicing electric vehicles.

Budget Paper No 2 p 149
Budget Overview p 32
Regional Ministerial Budget Statement p 72
A Future Made in Australia p 5
Media Release

Harnessing the Energy Transition to Benefit Consumers

The Government will provide $47.7 million over four years from 2024-25 (and $0.7 per year ongoing) to maximise consumer and community benefits of the energy transition. Funding includes:

• $27.7 million over four years from 2024-25 (and $0.7 million per year ongoing) to implement priority consumer energy resources reforms that help consumers save on bills by boosting the supply of renewable electricity to the grid from rooftop solar, home batteries and other consumer energy resources
• $16.6 million over four years from 2024-25 (including $1.7 million in capital funding in 2024-25) for the Australian Energy Regulator to help households get onto a better plan by sustaining regulatory activities, upgrading data and digital systems to reduce regulatory burden and cost, and delivering better outcomes for consumers through the Energy Made Easy website
• $1.8 million over four years from 2024-25 to implement a range of consumer-focused energy retail reform measures to support consumers switching to a better deal with just 'one click', prevent contracts automatically rolling over to higher-cost deals, ensure people receive the concessions and rebates they are entitled to and reduce excess fees and charges
• $1.6 million over two years from 2024-25 to undertake a statutory review of the Prohibited Energy Market Misconduct Act 2019 provisions in electricity retail, contract and wholesale markets.

Budget Paper No 2 p 54
Budget Overview p 18
Regional Ministerial Budget Statement p 67
A Future Made in Australia p 3
Media Release

Supporting Safety and Responsible Decommissioning in the Offshore Resources Sector

The Government will provide $29.7 million over three years from 2023-24 to improve environmental and safety outcomes in the offshore resources sector. Funding includes:

• $20.0 million in 2024-25 for the National Offshore Petroleum Safety and Environmental Management Authority to assist its regulatory functions as the Commonwealth's regulator of the offshore oil and gas industry and the emerging offshore energy industry
• $6.8 million over two years from 2024-25 to implement the Offshore Decommissioning Roadmap and grow Australia's decommissioning industry by improving coordination and transparency and identifying opportunities for Australian businesses.

Budget Paper No 2 p 142