The Federal Government has unveiled its 2025–26 Budget, with investments in Australia’s energy sector aiming to contribute to a stronger economy and provide cost-of-living relief.
New 2025–26 Federal Budget energy investments include support for renewable technologies, green metals as well as private and global investment, all building on the Future Made in Australia agenda.
Prime Minister, Anthony Albanese, said this budget is securing Australia’s future during a time of global uncertainty by making the economy more productive and more resilient.
“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.”
New technologies
The Federal Government said that Australia’s potential for abundant renewable energy is a powerful source of comparative advantage and security, which is why the 2025–26 budget is unlocking $8 billion of additional investment in renewable energy and low emissions technologies through a $2 billion expansion of the Clean Energy Finance Corporation (CEFC).
This is in addition to $36.9 million to enhance the use of existing grid infrastructure and a $10 million Accelerated Connections Fund to reduce grid bottlenecks.
Boosting investment
The Federal Government is also unlocking private investment in priority areas by legislating $13.7 billion in hydrogen and critical minerals production tax incentives and allocating $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
The Federal Government will also establish a new front door for global investors with major transformational proposals to make it simpler to invest in Australia, which is expected to attract more global and domestic capital.
From September 2025, the Front Door will begin to act as a single‑entry point for investors, providing priority projects with coordinated facilitation services, guided by an Investor Council.
Green metals
The $2 billion Green Aluminium Production Credit aims to support Australian aluminium smelters to transition to renewable energy, and the $1 billion Green Iron Investment Fund aims to accelerate the development of the industry.
The Federal Government will also work with the South Australian Government to provide immediate support for the Whyalla Steelworks, local business creditors and the longer‑term transformation of the Steelworks. This is because steel plays an important role in energy infrastructure, such as wind turbines.
Energy bill relief
The 2025–26 Federal Budget will also see energy bill relief extended to the end of 2025 for every household and around one million small businesses.
The Federal Government said it will provide around $1.8 billion in additional payments on top of the nearly $5 billion of bill relief being delivered so far.
As part of this, every household and around one million small businesses will receive two $75 rebates directly off their electricity bills through to 31 December 2025.
The Federal Government said state and federal energy bill relief has already helped to lessen electricity price increases, with prices dropping 25.2 per cent across 2024, with the additional federal rebates expected to maintain downward pressure on prices.
According to the Federal Government, retail market reforms will also help energy customers access cheaper deals and could save households hundreds of dollars off their annual bill.
These changes will make it easier for consumers to switch to a better deal, ensure people receive their entitled concessions and rebates and prevent retailers from automatically rolling over contracts to higher-cost deals.
The Federal Government is also extending the Energy Efficiency Grants for Small and Medium Sized Enterprises program, providing $56.7 million in grants of up to $25,000 to over 2400 businesses to fund energy upgrades, such as replacing inefficient appliances and improving heating systems.
Additionally, the Federal Government has also extended the ACCC’s Inquiry into the National Electricity Market for 12 months.
