Adaptability in an uncertain environment
Australia faces a more contested and uncertain economic environment. The transition to net zero, intensifying global competition for industry and resources, and the rapid adoption of artificial intelligence (AI) are reshaping economic activity, while geopolitical tensions are increasing. In this environment, resilient supply chains, strong international partnerships, and a broader industrial base will be critical to Australia's long-term prosperity.
It is crucial that Australia harness its strengths to build resilience, enhance stability and protect economic security. Australia’s expanding critical minerals sector will help strengthen and diversify supply chains and support the global transition to net zero.
Our international partnerships facilitate access to world‑class research, innovation and development infrastructure which will drive productivity. We have a growing AI ecosystem, and are identifying new pathways for growth, including investing in AI and quantum research that will help solve some of our greatest national challenges. Our access to renewable energy sources, international partnerships, emerging technologies and human capital are all strengths.
Growing business and industry
Complex supply chains and structural shifts across energy, industry and technology are shaping the global landscape. Uncertainty has heightened efforts to strengthen our domestic supply chains and build a resilient and secure domestic economy. Our work will focus on building economic resilience, supporting innovation and making sure Australian industries can thrive in this rapidly changing global landscape. We will support the broadening of our sovereign manufacturing capability and deliver on the Australian Government’s commitment to a Future Made in Australia.
The conflict in the Middle East has impacted supply chains including fuel, plastics, chemicals and fertilisers. We are working with industry, government and international partners to monitor the impact of the conflict on supply chains and industrial users. We will continue to provide coordinated policy responses to strengthen Australia’s industrial resilience and respond to global supply chain disruption.
The government is committed to implementing a single-entry point for projects seeking Commonwealth investment and regulatory facilitation services, simplifying how businesses interact with government. Through the Investor Front Door, we will provide major project proponents a clear Commonwealth entry point for facilitation services, coordinating access to specialist investment vehicles such as the National Reconstruction Fund (NRF). These projects will strengthen Australia’s clean energy supply chains, lift productivity, create sustainable regional jobs, and improve regional resilience.
We are supporting the transition to net zero, accelerating the growth of our clean energy manufacturing and green metals sector. Australia has the resources, industrial base and renewable energy potential to become a globally competitive producer of green metals, including iron, steel, alumina and aluminium. We are leveraging these advantages by supporting innovation through the Green Metals Innovation Network, and catalysing early mover investment in commercial-scale green iron production through the Green Iron Investment Fund. Through the NRF’s Net Zero Fund, we are investing to support decarbonisation and energy efficient upgrades in hard-to-abate sectors, build domestic clean-energy supply chains and support the manufacture of low-emissions technology.
As the economy transitions, we will need to manage the impact of structural adjustment on Australian industries and regions, supporting opportunities to broaden our industrial base and strengthen our sovereign capabilities. We are working to support industrial transitions and protect national capability through targeted government support. This includes support packages for the Mount Isa copper smelter and Townsville copper refinery, Port Pirie and Hobart smelters, Boyne Island and Tomago aluminium smelters, Phosphate Hill fertiliser facility, and the Whyalla steelworks. By working with local businesses and communities, we will help carve a sustainable future for Australian regions.
The government is strengthening incentives for innovation through reforms to the Research and Development (R&D) Tax Incentive and Australia's venture capital tax incentive programs. The R&D Tax Incentive reforms will better target research and development that delivers spillover benefits to the broader economy. Venture capital reforms will expand investment and fund size thresholds, enabling greater investment in innovative start-ups and growing businesses. Together, these reforms will increase business investment in innovation, improve access to capital for high-growth firms, and support productivity and economic growth.
Our department and broader portfolio will leverage Australia’s national and competitive advantages to advance the government’s vision for a Future Made in Australia. We are committed to supporting Australian businesses as they adapt to change, while ensuring a level playing field through an effective and accessible trade remedies system. By doing so, we will support local industry and strengthen our position in global supply chains.