2024-25 Federal Budget Wrap

Overview 

The Future Made in Australia package is the headline item for industry policy, aimed at using industry as the engine of future economic growth and the net zero transition. It aims to build Australia’s comparative advantage in green energy including in renewable hydrogen, green metals, and solar panels. It also aims to build supply chain resilience for the net zero transition, including through critical minerals. Funding will catalyse clean energy supply chains and support Australia to become a renewable energy superpower.

 The Budget contains few new measures for science and research, but promises an independent review of research funding, which ATSE has been advocating for. Many of the initiatives in industry and science are funded using existing departmental resources.

The Budget also provides for the first stage of the Universities Accord reforms, building on announcements prior to Budget night on placement payments and capping student loan indexation.

Read ATSE’s response to the Budget here. 

Summary of Budget announcements and alignment with ATSE recommendations 

Research 

• A review of research and development, as recommended in ATSE’s pre-budget submission. 
• An additional $1.4 billion in research funding over 13 years from 2024–25 through the Medical Research Future Fund (MRFF), for a total commitment through the MRFF of $6.4 billion over 13 years. 
• $18.8 million over two years from 2024–25 to continue the development of the National One Stop Shop for Clinical Trials and Human Research and support current systems. 
• $28 million over four years from 2024–25 (and $1.2 million per year ongoing) to support the implementation of the Defence Trade Controls Amendment Act 2024, including through upgrades to Defence’s export permit ICT system, and education and engagement activities for Australian industry and academia to support compliance with new requirements. This enacts ATSE and the Australian Academy of Science’s recommendation to the DTCA inquiry to deliver educational resources and co-design with the sector for implementation. 

Industry 

• $19.7 billion over ten years from 2024–25 to accelerate investment in Future Made in Australia priority industries, including renewable hydrogen, green metals, low carbon liquid fuels, refining and processing of critical minerals and manufacturing of clean energy technologies including in solar and battery supply chains. Funding includes: 
  • An estimated $7.1 billion over 11 years from 2023–24 (and an average of $1.5 billion per year from 2034–35 to 2040–41) to support refining and processing of critical minerals. 
  • An estimated $8.0 billion over ten years from 2024–25 (and an average of $1.2 billion per year from 2034–35 to 2040–41) to support the production of renewable hydrogen. 
  • $1.5 billion over seven years from 2027–28 (and an average of $125.0 million per year from 2034–35 to 2036–37) to the Australian Renewable Energy Agency to supercharge ARENA’s core investments in renewable energy and related technologies. 
  • $1.7 billion over ten years from 2024–25 for the Future Made in Australia Innovation Fund, to be administered by the Australian Renewable Energy Agency, to support innovation, commercialisation, pilot and demonstration projects and early-stage development in priority sectors, including renewable hydrogen, green metals, low carbon liquid fuels and clean energy technology manufacturing such as batteries. 
  • $1.4 billion over 11 years from 2023–24 (and $66.8 million per year from 2034–35 to 2036–37) to support manufacturing of clean energy technologies, including $835.6 million over ten years from 2024–25 (and $66.8 million per year from 2034–35 to 2036–37) to establish the Solar Sunshot program, and $549.0 million over eight years from 2023–24 to support battery manufacturing, including $2.0 million over two years from 2024–25 for a feasibility study to explore opportunities that could be generated from developing a green polysilicon industry in Australia, including through export and cooperative international opportunities. 
  • $20.9 million over four years from 2024–25 (and $1.2 million per year ongoing) to undertake further consultation on incentives to support the production of, and demand for, low carbon liquid fuels, as well as the development of a low carbon liquid fuels certification scheme through the Guarantee of Origin Scheme. 
  • $18.1 million over six years from 2024–25 for foundational initiatives to expedite the emergence of Australia’s green metals industry, including through enhanced industry and research collaboration, exploration of opportunities to improve the use of Australian scrap metal and undertaking of further consultation on incentives to support the production of green iron, steel, alumina and aluminium. 
  • $11.4 million over four years from 2024–25 (and $1.1 million per year ongoing) to fast track the initial phase of the Guarantee of Origin Scheme for green hydrogen and bring forward work on green metals, including iron, steel and aluminium. 
• $32.6 million over four years from 2024–25 to establish regulatory frameworks and bilateral instruments to better support heavy industry to reduce emissions to meet Paris Agreement commitments, both in Australia and overseas. This will provide industry with the option of moving carbon dioxide to suitable and secure geological storage sites, where proven, to support energy security, meet obligations under Australian law and provide carbon management solutions for regional partners, consistent with our obligations under international law. 
• $29.7 million over three years from 2023–24 to improve environmental and safety outcomes in the offshore resources sector. This includes $6.8 million over two years to support the offshore oil and gas decommissioning strategy including support to grow Australia’s offshore decommissioning industry 
• $166.2 million over five years from 2023–24 to support the implementation of the Defence Industry Development Strategy (over the period 2023-24 to 2027-28). This was an existing initiative announced before Budget night. 
• As announced prior to Budget night, investments in quantum technologies including PsiQuantum building the first fault tolerant quantum computer and the establishment of Quantum Australia at the University of Sydney.

Decarbonisation 

• $399.1 million over 5 years for the Net Zero Economy Authority. This includes $10 million to provide public information on the net zero transition, support for transitioning workers, and $134.2 million in the short term to provide workforce transition support. This implements ATSE and the AAS’s recommendation in our Green Energy Superpower submission to support and re-skill workers. 
• An additional $48 million over four years from 2024–25 to implement further reforms to the Australian Carbon Credit Unit (ACCU) scheme. This resources ATSE’s recommendation to the ACCU review to create independent governance. 
• $2.1 million over four years from 2024–25 (and $0.2 million per year ongoing) to the Department of Finance to support accurate calculation and reporting of greenhouse gas emissions data from government operations as part of the Net Zero in Government Operations Strategy. 
• $154.5M over 6 years to implement a new Vehicle Efficiency Standard. 

Skills 

• $91 million to develop the clean energy workforce, including investing in the VET teacher, trainer and assessor workforce, funding clean energy training facility upgrades and capacity expansion, and expanded eligibility for the New Energy Apprenticeships Program. This implements ATSE and the AAS’s recommendation in the Green Energy Superpower consultation to develop workforce pipelines for green energy jobs. 
• $10 million in 2025–26 to establish a National Hydrogen Technology Skills Training Centre, in partnership with the Victorian Government. 
• $101.8 million over seven years from 2024–25 to continue to build the Australian industrial workforce required to support the delivery of Australia’s conventionally-armed, nuclear-powered submarines. This includes $16.3 million over six years, starting from 2024–25, for the provision of 3,000 scholarships to students pursuing undergraduate STEM courses relevant to the nuclear-powered submarine enterprise.  
• $4.4 million in 2024-25 for Vocational Education and Training (VET) support, including the creation of 15,000 fee-free TAFE places and 5,000 places for pre-apprenticeships. 
• $350.3 million over four years from 2024-25 to expand the availability of FEE-FREE Uni Ready courses. 
• $55.6 million to launch the Building Women’s Careers program to create structural and cultural change in male-dominated workplaces so more women pursue careers in key high demand industries. This partially implements ATSE’s recommendation it its Electricity and Energy Sector Plan submission on growing the energy workforce through increasing diversity. 

Higher education 

• $38.2 million for a range of programs to increase diversity in STEM education and industries, alongside the existing Elevate: Boosting Women in STEM scholarship program delivered by ATSE.  
• $18.7 million over four years from 2024–25 (and an additional $28.8 million from 2028–29 to 2034–35) to introduce a National Higher Education Code to Prevent and Respond to Gender-based Violence from 1 January 2025. ATSE supports this initiative. 
• $27.7M to better harmonise university and VET sector. This implements ATSE’s recommendation to do so, in our submission to the inquiry into the status and perception of vocational education. 
• The development of a needs-based funding model for tertiary education to be introduced from Jan 2026, with implementation funding not yet announced. ATSE called for this in its submission to the University Accord. 
• Funding to establish an Australian Tertiary Education Commission (ATEC) as an independent steward of the tertiary education system. 
• $2.1 million over four years from 2024–25 (and an additional $3.7 million from 2028–29 to 2034–35) for the Department of Education to develop and implement regulation to require universities to establish new supply of purpose-built student accommodation to support any increase in international student enrolments over an initial international student allocation. 
• New requirement that higher education providers must direct at least 40% of Student Services and Amenities Fees to student-led organisations.  
• Reducing indexation applied to HELP loans by capping the indexation rate at the lower CPI or Wage Price Index. 
• Payments to student teachers, nurses, midwives and social workers of $320 a week during their mandatory work placements starting from July 2025. This supports the Universities Accord’s recommendations and ATSE’s recommendation to provide additional income support for students. 

Primary and secondary education 

• $34.6 million over four years to support several initiatives to make curriculum support and professional development materials available to all teachers, implementing a recommendation from ATSE’s submission to the Draft National Teacher Workforce Action Plan. 
• $2.4 million over three years from 2024–25 to finalise and implement the First Nations Teacher Strategy to improve the attraction and retention of First Nations teachers.  
• $5.3 million over two years from 2024–25 to support the Good to Great Schools Australia English, Maths and Science pilot program to deliver targeted supports to students.

Agriculture 

• $519.1 million through the Future Drought Fund for preparing for the next drought and building climate resilience – this is new funding announced just before Budget night. Using the fund for developing climate resilience and research was highlighted in ATSE’s submission to the Productivity Commission’s review of the Future Drought Fund. 
• $63.8 million over ten years from 2024–25 (and $0.9 million per year ongoing) to support initial emission reduction efforts in the agriculture and land sectors as part of Australia’s transition to net zero by 2050. This aligns with ATSE’s recommendation for decarbonisation research made in our submission to the Agriculture and Land Sectoral Plan. 
• $13.9 million over four years from 2024–25 (and $3.4 million per year ongoing) to maintain drought policy capability in the Department of Agriculture, Fisheries and Forestry to support Australia’s readiness to respond to drought events. 
• New initiatives for agricultural careers, including $1.0 million over two years from 2024–25 for a skilled agricultural work liaison pilot to attract graduates to work in agriculture, and $0.5 million over two years from 2024–25 to continue the AgCAREERSTART pilot program for two cohort years to encourage young people to consider a career in agriculture. ATSE’s Our STEM Skilled Future report identified rebuilding and modernising agricultural education and training as a priority.

Water 

• Funding over five years from 2023–24 to continue implementation of the Murray-Darling Basin Plan, however the total amount is not disclosed in the Budget papers due to commercial sensitivities and ongoing negotiation with the states and territories. Funding for the Plan includes $4.0 million in 2024–25 for the hydrological modelling platform underpinning implementation of the Basin Plan and a business case for further development, and funding for additional voluntary water purchases to contribute towards environmental outcomes under the Basin Plan – both of which ATSE has called for in our submission to a Murray-Darling Basin Plan review. The funding also includes $17 million over three years for habitat enhancement in the Coorong region. 
• $174.6 million over six years from 2024–25 for the National Water Grid Fund to deliver new water infrastructure projects in the regions, including $26.1 million for First Nations water infrastructure projects.

 Digital technologies 

• $39.9 million over five years to support the adoption and use of artificial intelligence (AI) technology in a safe and responsible manner. ATSE has advocated for uplifting AI capacity in its pre-budget submission. Measures include:
  • $21.6 million to establish a reshaped National AI Centre and an AI advisory body. 
  • $15.7 million to support industry analytical capability and coordination of AI policy development, regulation and engagement activities across government, including in the areas of health care, consumer law and copyright law. 
  • $2.6 million to respond to and mitigate against national security risks related to AI. 
  • $1.5 million for FY 2024-25 for responsible AI in health. ATSE recommended investing in AI technologies for healthcare in its submissions to the New South Wales and South Australia inquiries into AI. 

• $68 million for First Nations digital inclusion including $40M for remote Wi-Fi, $22 million for a digital support hub and $6 million for better data collection. In its submission to the Future Delivery of Foundation Skills Training in Remote Australia, ATSE advocated investment in internet access infrastructure. 
• $187.4 million to upgrade ATO’s information and communications technologies, managing increasing cyber risk.  
• $288.1 million over four years for delivery of the Digital ID system. 

International collaboration and trade 

• $76.2 million over five years from 2023–24 (and an additional $0.3 million from 2028–29 to 2029–30) to support Australia’s continued engagement in international climate change and energy transition issues, including through the International Energy Agency, G20 and United Nations Framework Convention on Climate Change, to bolster trade opportunities and enhance security relationships with key partners, and bid to co-host the 31st Conference of the Parties (COP31) in partnership with the Pacific and undertake initial planning in the event of a successful bid. 
• $150 million over four years from 2024–25 in contributions to international climate financing funds. 
• $505.9 million over five years from 2023–24 (and $118.3 million per year ongoing) to deepen Australia’s engagement with Southeast Asia, including measures to implement the next phase of the Government’s response to ‘Invested: Australia’s Southeast Asia Economic Strategy to 2040’.  This includes $4.8 million over four years from 2023–24 to establish two additional ‘Landing Pads’ in Jakarta and Ho Chi Minh City through the Austrade Landing Pads program to support Australian technology exports and startups to expand in the region. 
• $20.7 million over five years from 2023–24 (and $3.9 million per year ongoing) to deliver the Australia-France Roadmap. The roadmap establishes a new agenda for bilateral cooperation across defence and security, resilience and climate action, and education and culture.