Federal Budget 2025: What's in it for manufacturers?

With a federal election just around the corner, the Treasurer, Jim Charmers, delivered cost-of-living relief measures, such as tax cuts and energy rebates, in the federal Budget on Tuesday, 25 March 2025. But are there any measures that could provide help for manufacturers in this modest pre-election budget?

RSM Australia National Manufacturing Leader Louis Quintal said the 2025 federal Budget will see the government continue its focus on fostering growth and resilience within the domestic manufacturing sector through its flagship ‘Future Made in Australia’ Act.

Announced in last year’s federal Budget as a $22.7 billion commitment over the next 10 years, the next installation of the government’s agenda sees an increased focus on cleaner, cheaper energy, greater investment into infrastructure, and support for SMEs, Quintal said.

Quintal said the manufacturing sector would welcome the below initiatives, which will build on the government’s existing $22.7bn Future Made in Australia commitment:

• Investment of $20 million to support Australian producers through the Buy Australian Campaign, aiming to encourage consumers to buy Australian made products.
• Investment into improved regional infrastructure including $17.1 billion over 10 years for road and rail projects to improve efficiency and resilience for manufacturers and their transport and logistics networks.
• Fiscal support for green metals through the $2 billion Green Aluminium Production Credit to support Australian aluminium smelters to transition to renewable energy, and a commitment of $1 billion to Green Iron Investment Fund to accelerate the development of this new industry.
• Securing the future of steelmaking in Whyalla by working with the South Australian Government to provide immediate support for the Whyalla Steelworks, local business creditors and the longer-term transformation of the Steelworks.
• Investment of $13.7 billion in hydrogen and critical minerals production tax incentives, with allocation of $1.5 billion in support for priority areas through the Future Made in Australia Innovation Fund including: $750 million for green metals; $500 million for clean energy technology manufacturing capabilities; and $250 million for low carbon liquid fuels.
• Fiscal support for manufacturers to reduce energy costs through subsidies.
• Fiscal support of $8 billion additional investment in renewable energy and low emissions technologies through a $2 billion expansion of the Clean Energy Finance Corporation.

Many will now be awaiting Peter Dutton’s opposition response during budget week to hear what measures he may introduce if elected.

Image credit: iStock.com/Palto