The Federal Government has announced its 2025–26 Budget, unveiling key investments in Australia’s energy sector to strengthen the economy and provide cost-of-living relief.
Renewable Energy and New Technologies
As part of the government’s Future Made in Australia agenda, the Budget includes significant funding to support renewable technologies, green metals, and increased private and global investment. Prime Minister Anthony Albanese said the plan is about making the economy more resilient during uncertain global conditions.
“Our best defence against global pressures is a stronger economy, and that’s what we are building in this Budget,” he said.
“We’re building a Future Made in Australia – creating jobs and opportunity for generations of Australians as we continue the work of making our country an indispensable part of the global net zero transformation.”
To accelerate Australia’s transition to renewable energy, the government has allocated $8 billion in additional investment in clean energy and low-emissions technology, supported by a $2 billion expansion of the Clean Energy Finance Corporation (CEFC). This comes alongside $36.9 million to improve existing grid infrastructure and a $10 million Accelerated Connections Fund to reduce grid bottlenecks.
Boosting Investment in Hydrogen and Critical Minerals
The federal government is implementing $13.7 billion in tax incentives aimed at promoting the development of critical minerals and hydrogen to attract private and foreign investment. Furthermore, the Future Made in Australia Innovation Fund will allocate $1.5 billion, which encompasses an investment of $750 million in green metals.
$500 million to increase production of sustainable energy technologies
$250 million for liquid fuels with low carbon emissions
Launching in September 2025, a new ‘Front Door’ project will simplify investment procedures by giving investors a single point of access. Under the direction of an Investor Council, it will support significant transformational initiatives and draw in international investment to Australia.
Green Metals and Steel Industry Support
To further develop Australia’s green metals industry, the Budget includes:
- $2 billion Green Aluminium Production Credit to help smelters transition to renewable energy.
- $1 billion Green Iron Investment Fund to support industry development.
- Joint efforts with the South Australian Government to provide immediate and long-term support for the Whyalla Steelworks and its local business creditors.
The government recognises the steel industry’s role in building renewable energy infrastructure, including wind turbines, and is committed to supporting its transition.
Energy Bill Relief for Households and Businesses
Households and small businesses will receive continued energy bill relief through December 2025, with the government allocating $1.8 billion in additional payments on top of the nearly $5 billion already delivered.
Every household and approximately one million small businesses will receive two $75 electricity bill rebates directly applied to their accounts.
Federal energy bill relief measures have already contributed to a 25.2 per cent drop in electricity prices in 2024, with further rebates expected to keep prices lower. Retail market reforms will also help consumers find cheaper energy deals, ensure they receive entitled concessions, and prevent retailers from automatically rolling contracts onto higher-cost plans.
Support for Businesses and Market Transparency
The government is extending its Energy Efficiency Grants for Small and Medium Businesses program, setting aside $56.7 million in funding. This means that over 2,400 businesses will have the chance to apply for grants of up to $25,000 to upgrade outdated appliances and heating systems. The goal is simple—help businesses cut down on energy costs while making their operations more efficient and sustainable.
Also, the ACCC’s investigation into the National Electricity Market will go on for another year, making sure there is ongoing monitoring and clarity in the industry.
A Stronger, Greener Future
In addition to provide much-needed cost-of-living relief, the 2025–2026 Federal Budget seeks to establish Australia as a leader in renewable energy and ensure long-term economic gains. The government is making significant progress toward a more robust and sustainable future by investing billions in clean energy, infrastructure, and industrial support.