2024-2025 Federal Budget - Industry & Technology

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

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

Medical Research

The Government has committed an additional $1.4 billion over 13 years from 2024-25 through the Medical Research Future Fund (MRFF) to continue to invest in life-saving medical research in Australia, for a total commitment through the MRFF of $6.4 billion over 13 years in research funding across the following themes:

• an additional $377.5 million (for a total contribution of $2.0 billion over 10 years from 2024-25) to translate research outcomes into medical practice
• an additional $411.6 million (for a total contribution of $1.6 billion over 13 years from 2024-25) to continue existing research missions and introduce two new 10-year research missions from 2027-28 for low-survival cancers and reducing health inequities. Funding includes:
  • $306.0 million to continue existing research missions and fund the two new missions to 2033-34
  • $105.6 million over three years from 2034-35 to continue support for the two new missions

• an additional $329.6 million (for a total contribution of $1.4 billion over 10 years from 2024-25) for patient-centred research including emerging priorities in areas such as women's health, and supporting innovative treatments, clinical trials, and more advanced healthcare
• an additional $269.6 million (for a total contribution of $1.3 billion over 10 years from 2024-25) for medical researchers to make breakthrough discoveries, develop their skills and progress their careers in Australia.

Budget Paper No 2 p 115
Budget Overview p 45

Australian Universities Accord - Tertiary education system reforms

The Government will provide $1.1 billion over five years from 2023-24 (and an additional $2.7 billion from 2028-29 to 2034-35) for the first stage of reforms to Australia's tertiary education system in response to the Australian Universities Accord Final Report. These reforms will boost equity and access to higher education, progress tertiary harmonisation and will support a target of 80 per cent of the working-age population holding a tertiary qualification by 2050. Funding includes:

• $427.4 million over four years from 2024-25 (and an additional $1.2 billion from 2028-29 to 2034-35) to establish a new Commonwealth Prac Payment of $319.5 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies
• $350.3 million over four years from 2024-25 (and an additional $1.1 billion from 2028-29 to 2034-35) to expand access to university enabling and preparation programs through a new FEE-FREE Uni Ready Courses program from 1 January 2025
• $239.7 million over five years from 2023-24 (and an additional $250.5 million from 2028-29 to 2034-35) to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation. This applies retrospectively and is estimated to reduce outstanding loans by around $3.0 billion.

The Government will also undertake a strategic examination of Australia's research and development system to strengthen its alignment with Australia's priorities and improve innovation and research and development outcomes. Higher education providers will also be required to direct a minimum of 40 per cent of their Student Services and Amenities Fee revenue to student-led organisations from 1 January 2025. Details of the following reforms to boost equity and access to higher education and to progress tertiary harmonisation will be announced once final consultations with relevant stakeholders have been completed:

• The Australian Tertiary Education Commission which is intended to be established by 1 July 2025, will be responsible for tertiary education system stewardship, delivery of funding arrangements for higher education, ongoing tertiary harmonisation and data collection and reporting
• Managed growth funding for universities is intended to commence from 1 January 2026. This approach will more accurately reflect student demand, support efficient growth in places, and help Australia to reach its tertiary attainment target
• A needs-based funding system is intended to be implemented from 1 January 2026 to better support First Nations students, students from low socio-economic status backgrounds, students with disability and students studying in regional and remote Australia.

Budget Speech p 5
Budget Speech p 11
Budget Paper No 2 p 62
Budget Overview p 36
Women's Budget Statement p 51
Regional Ministerial Budget Statement p 39
Easing cost-of-living pressures p 2
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 the 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

Digital ID

The Government will provide $288.1 million over four years from 2024-25 to support the initial delivery of the Digital ID system and support more Australians to realise Digital ID's economic and privacy benefits. Funding includes:

• $155.6 million over two years from 2024-25 to the Australian Taxation Office (ATO) to continue operating and improving the Government's Digital ID, myGovID, and the system which supports authorised access to a range of government business services
• $46.0 million over two years from 2024-25 to Services Australia to continue operating and improving the identity exchange which enables transactions across the Australian Government Digital ID System and performs the function of Digital ID System Administrator
• $35.2 million over two years from 2024-25 to the Department of Finance to continue policy leadership and governance of the Digital ID program
• $23.4 million over two years from 2024-25 for the ATO, Department of Finance and Services Australia to pilot the use of government digital wallets and verifiable credentials.

Budget Paper No. 2 p 97
Budget Paper No. 4 p 11
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

Future Made in Australia - Attracting investment in key industries

The Government will provide $68.0 million over four years from 2024-25 (and $3.1 million per year ongoing) to attract investment in key industries to support a Future Made in Australia. Funding includes:

• $54.7 million over two years from 2024-25 to administer, coordinate and promote the Government's Future Made in Australia agenda, including the development of legislation that establishes a National Interest Framework and consultation with industry, investors and major stakeholders on the development of a 'single front door' that improves the attraction and facilitation of major investment proposals.

The Government also intends to enhance Indigenous Business Australia's ability to leverage their capital to invest in First Nations communities and businesses.

Budget Speech p 9
Budget Paper No 2 p 65
Budget Overview p 30
A Future Made in Australia p 5
Media Release

Investing in the future of industry and science

The Government will provide $46.9 million over four years from 2024-25 to support the development of industries in Australia and maintain the affordability of nuclear medicines for Australians. Funding includes:

• $25.9 million over two years from 2024-25 to the Australian Nuclear Science and Technology Organisation to continue production of affordable nuclear medicines
• $18.0 million in 2024-25 to continue to build the capability of the National Reconstruction Fund Corporation to undertake investments and deliver on its policy outcomes.

Budget Paper No 2 p 140
Budget Overview p 35
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

Supporting safe and responsible AI

The Government will provide $39.9 million over five years from 2023-24 for the development of policies and capability to support the adoption and use of artificial intelligence (AI) technology in a safe and responsible manner, including:

• $21.6 million over four years from 2024-25 to establish a reshaped National AI Centre (NAIC) and an AI advisory body within the Department of Industry, Science and Resources
• $15.7 million over two years from 2024-25 to support industry analytical capability and coordination of AI policy development, regulation and engagement activities across government, including to review and strengthen existing regulations in the areas of health care, consumer and copyright law
• $2.6 million over three years from 2024-25 to respond to and mitigate against national security risks related to AI.

Budget Paper No 2 p 141