Australia's Federal Budget 2025-26: Resources Sector Success and Cost of Living Relief
Key Ideas
  • The 2025-26 Federal Budget highlights the significant contribution of the resources sector to Australia's economy through taxes and royalties, enabling substantial cost of living relief for all Australians.
  • Key measures in the Budget include tax incentives for critical minerals production, hydrogen production, and green energy projects to support the transition to renewable electricity and decarbonization efforts.
  • CME's Chief Executive Officer emphasizes the importance of supporting industry growth to provide long-term sustainable relief and improve Australia's investment attractiveness.
  • The Budget also addresses recommendations from CME's Pre-Budget Submission but leaves certain key aspects unaddressed, such as corporate tax rate cuts and IR reforms in the resources sector.
The Chamber of Minerals and Energy WA (CME) has acknowledged the positive impact of the 2025-26 Federal Budget on Australia, attributing part of the cost of living relief to the sustained success of the resources sector. The budget, backed by strong commodity prices, is forecasted to continue leveraging the resources sector's contribution to the national balance sheet through taxes and royalties in the upcoming fiscal year. While welcoming various cost-of-living support measures in the Budget, CME's CEO, Rebecca Tomkinson, emphasized the importance of fostering industry growth for sustainable relief. The Budget introduces several Future Made in Australia initiatives, including tax incentives for critical minerals and hydrogen production, green energy projects, and clean energy manufacturing. CME's Pre-Budget Submission recommendations, such as corporate tax rate cuts and IR reforms, were not entirely included in the Budget. Notably, the Budget introduces significant measures like the Hydrogen Production Tax Incentive, Green Aluminium Production Credit, and Green Iron Investment Fund to drive renewable energy transition and boost green metal innovation. Particularly, the Hydrogen Headstart Fund and Clean Energy Manufacturing Fund aim to accelerate the adoption of green technologies, with a focus on hydrogen production and clean energy manufacturing. The Budget also allocates funds for low carbon liquid fuels, battery projects, and renewable energy solutions. Despite the positive initiatives, CME stresses the need for further improvements in investment attractiveness and regulatory frameworks to support business confidence and sustain national prosperity. The Budget's focus on green energy projects and tax incentives signals a positive step towards decarbonization and economic growth in Australia's resources sector.
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