The funding will support the Australian metals industry and move to zero zero.
The Albanese government’s federal budget includes $2 billion in green aluminium and $1 billion in green irons as part of its “Australian-made metal support” plan.
Green aluminum and green iron are produced using renewable energy sources rather than fossil fuels, reducing carbon emissions.
Treasurer Jim Chalmers delivered the final budget before the federal election. This includes $3.2 billion in funding over 19 years, from 2024 to 25, investing in the Australian metals industry.
The funding will be provided to eligible Australian aluminum production facilities over the next decade.
Additionally, the government will provide $1 billion for the Green Iron Investment Fund over seven years from 2024-25.
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This would support the Green Iron Project via capital grants and “support producers to establish or migrate low-emission facilities in Australia.”
The worker’s budget also includes $2 billion for Clean Energy Finance Corporation to invest in renewable energy, energy efficiency and low-emissions technologies.
“The government has already funded this measure,” the budget said.
In his budget speech, Chalmers outlined how to develop new industries of clean energy manufacturing, green metal and low carbon liquid fuels to unlock private investment.
“We have legislated this year based on tax incentives for key minerals and green hydrogen, and we are also supporting Clean Technology by recapitulating the future of the Australian Innovation Fund and the Clean Energy Finance Corporation.
Chalmers said the agenda focuses on capturing Australia’s industry, resources, skills and investment appeal to grasp jobs and opportunities for a net-zero transition.
The budget shows Australia is in a deficit of $27.6 billion.
Taxpayer dollars to support Whyalla Steel Works
Up to $500 million has been allocated to convert Whyalla Steelworks, based in Grey seats in South Australia, into a low-emission facility.
“The funding profile for this measure is not published (NFP) due to commercial sensitivity,” the government said.
Additionally, the Labour Government allocated $219.3 million over two years from 2024-25, supporting Whyalla Steelworks during its management.
“Funds include $192 million over the two years from 2024 to 25, with Commonwealth making a joint contribution with South Australia due to Whyalla Steelworks’ administrative expenses,” the budget states.
Climate change and extreme weather phenomena
Budget form 1 (PDF), released by the Labor Government on March 25, argued that climate change is causing more frequent and extreme weather events due to “increasing compound interest and impact” on the economy.
“To strengthen our resilience and preparation, the government is developing a comprehensive national climate risk assessment and national adaptation plan to analyse climate risks and guide action,” the budget states.
“The new climate disclosure regulations require large businesses to report significant risks to their businesses, which will allow the private sector to make more resilient investments and reduce the costs of future disasters.”
The budget predicted that Australia’s deficit reached $42.1 billion in fiscal year 2025-26, or 1.5% of gross domestic product. This contrasts with the $15.8 billion surplus achieved in 2023-24.
In response, Shadow Treasurer Angus Taylor said the budget confirms Australians are poorer than before.
In contrast to the Labour Party’s renewable energy plan in Australia alone, the coalition aims to incorporate nuclear energy into the mix.
The coalition claims their energy plans will save Australians up to $263 billion compared to workers’ renewable energy-only approaches.
“This means a reduction in household electricity bills, reducing operating costs for small businesses, and a stronger and more resilient economy.”
