Article by Avant Group - 2024-2025 Federal Budget – Transitioning to a Net Zero Future and Investing in Sovereign Capabilities

2024-2025 Federal Budget – Transitioning to a Net Zero Future and Investing in Sovereign Capabilities

Posted: May 15, 2024

The 2024-2025 Federal Budget marks a transitionary shift in the landscape of grants and funding. This new budget outlines a growing vision for investment in priority industries in key sectors.

Clean Technology / Net Zero

Clean energy technologies emerge as a central focus of the budget, driven by the landmark $17.9 billion Future Made in Australia Fund.

Defence

Defence spending is forecast to revamp investment in key programs and provide a significant expansion in grants and funding over the next 5 years.

Manufacturing

The manufacturing sector will receive significant funding to increase domestic capabilities for manufacturing of critical clean energy technologies.

Critical Minerals

The Critical Minerals sector will receive funding for three key programs to expand domestic capabilities to meet the growing demand for materials as we transition to a Net Zero Future.

Small Business Support

Extension of the instant asset write off and energy bill relief has been funded to ease financial pressures.

Disaster Resilience

Expansion of funding for natural disaster response, new water infrastructure projects and funding for farmers to manage climate change impacts have been budgeted.

Export Funding

The Export Market Development Grant has seen no change in funding, remaining at $110 million per year for the next 3 years.

Key programs:

  • $1.7 billion Future Made in Australia Innovation Fund for the deployment of innovative tech and facilities linked directly to priority industries.
  • $1 billion Solar Sunshot program to develop Australia’s solar photovoltaic (PV) manufacturing capabilities.
  • $1.3 billion Hydrogen Headstart Program for early movers in the industry.
  • $6.7 billion Hydrogen Production Tax Incentive providing $6.7 billion over 10 years
  • $7 billion Critical Minerals Tax Incentive which will provide $7 billion over 11 years, starting from 1 July 2027.
  • $523 million Battery Breakthrough Initiative
  • $165 million for Defence programs. This roughly doubles the previous funding pool. This is especially pertinent to the Sovereign Industrial Capability Priority Grant Program, which has suffered from chronic underfunding for several years.
  • $100 million allocated towards building workforce and supply chain capability to support the AUKUS nuclear submarine program, with roughly $85 million going towards skills uplift within the workforce.

Download our comprehensive budget analysis complete with expert insights into this changing funding landscape.

 

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