Budget 2024-2025: The good and bad for Australia’s clean energy future

May 14, 2024

The Federal Budget 2024-25 contains both good and bad news for Australian households and for our clean energy future.

The Federal Budget 2024-25 contains both good and bad news for Australian households and for our clean energy future, says national independent think tank Beyond Zero Emissions (BZE).

Beth Mitchell, BZE Head of Engagement, who attended this year’s Budget lock-up, said:

“We strongly support the government’s vision for Australia to become a renewable energy superpower, and this budget tries to bridge a big gap between policy gains and funding the action needed on the ground. However, some areas seem to fall short of the scale of investment needed.

“We welcome the $7 billion over a decade for the Critical Minerals Production Tax Incentive, which will add value to key minerals needed for the transition and enable these to replace fossil fuel exports, as called for in our 2024-25 pre-budget submission.” 

BZE also commends specific inclusions in this year’s Budget, which will help the country realise a Future Made in Australia: 

  • Hydrogen Initiatives: $8 billion over a decade for a new Hydrogen Production Tax Incentive and $100 million for upgrading the Port of Newcastle, supporting BZE’s Export Powerhouse (2021) vision
  • Long term cost of living relief:  $290.7 million for a Household Energy Upgrades Fund for those in social housing 
  • Skills: Energy Industry Jobs Plan and funding for increased training opportunities in the clean energy sector
  • Circular Economy: $23 million in 2024–25 for a national circular economy framework.

Ms Mitchell added: “Accelerating investment in renewable energy and clean technologies is key to unlocking reliable, affordable energy for Australian homes and businesses. It’s critical for our future economy, delivering the jobs and products we need to electrify our communities.

“While there were many promising signals in this year’s Budget, such as the Future Made in Australia Innovation Fund, we would like to have seen more investment in supporting home-grown industries, particularly in our regions and the battery industry.

“The National Battery Strategy, including $523.2 million for the Battery Breakthrough Initiative, is a good start but falls well short of our recommendation for $2 billion in equity funding. This higher level of investment, along with production tax credits, could deliver $114 billion in revenue and create 20,000 jobs by 2035, primarily in our regions.

“Another critical missing piece is a National Clean Industry Master Plan, covering energy, ports, water and roads. Coordinating regional, state and federal government investment will ensure we maximise efficiency and economies of scale across the country.”

Earlier this month, BZE released research which shows support to boost Australian manufacturing capabilities and grow five onshore cleantech supply chains could generate up to $215 billion in revenue and create up to 53,000 additional jobs by 2035. Read the report now: “Make It Here: Building Australia's Clean Industrial Future”.

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