Peak industry bodies have examined what the 2025–26 Federal Budget will mean for the future of Australia’s mining sector.
Welcome announcements celebrated by the industry include increased support for green metals, more funding for the Green Aluminium Production Credit scheme, and the a boost to the Green Iron Investment Fund.
Key measures in the Budget include:
- legislation of the Critical Minerals Production Tax Incentive ($7 billion over the 11 years from 2023–24) and Hydrogen Production Tax Incentive ($6.7 billion over the 10 years from 2024-25)
- Green Aluminium Production Credit – $2 billion available from 2028 to support Australia’s aluminium smelters to transition to renewable electricity
- Green Iron Investment Fund – $1 billion to support “early mover green iron projects and help overcome the initial capital hurdle of investment”. Up to $500 million has already been allocated to the Whyalla steelworks
- Green Metals Innovation Fund – $750 million to develop and commercialise green metal technologies and processes, including funding for pilot and demonstration projects.
Notably missing from the Budget was the continuation of the Junior Minerals Exploration Incentive (JMEI) that aims to help encourage investment in greenfields minerals exploration companies.
According to a report from BDO, JMEI has stimulated $404 million in greenfield exploration activity since 2017.
“Exploration needs support, and we need to see strong commitments from the major parties during this election campaign,” Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce said.
“You can’t have a mining boom or downstream processing, if you don’t make the discoveries in the first place.”
Minerals Council of Australia (MCA) chief executive officer Tania Constable welcomed good news for production tax credits, but warned more will need to be done if Australia is to maintain its competitive edge.
“These incentives are important for Australia’s critical minerals processing sector, ensuring global competitiveness and attracting long-term investment,” Constable said.
“At a time of escalating geopolitical uncertainty, Australia urgently needs a resilient private sector to navigate the volatility of global markets and secure our economic and strategic interests.”
Chamber of Minerals and Energy (CME) agreed “substantial” work remains to ensure the resources sector remains well-positioned to continue supporting national prosperity into the future.
“Successful businesses can pay their workers higher salaries,” she said. “The WA resources sector is a shining example, supporting six per cent of all jobs in Australia and offering average earnings 57 per cent higher than the national average.”
Key recommendations from CME’s pre-Budget submission that were not addressed include cutting Australia’s corporate tax rate to 25 per cent, increasing the Fringe Benefit Tax concession for employer-sourced housing in remote areas and committing to the repeal of recent industrial relations reforms that it said have reduced the competitiveness and productivity of the WA resources sector.
While there have certainly been positive steps made towards supporting the Australian mining industry to prosper, bodies like CME, MCA and AMEC will continue to push for policies that support long-term growth in the sector.
