2025-26 Federal Budget Wrap
Summary of the 2025-26 Federal Budget from the perspective of Australian applied science, technology and engineering policy.
Summary of the 2025-26 Federal Budget from the perspective of Australian applied science, technology and engineering policy.
This pre-election Federal Budget was limited in scope, with few new announcements making an appearance in the final release of the Budget papers. The headline item was a modest income tax cut for all taxpayers – which was in fact a new announcement on Budget night. Other Government priorities making an apperance in the Budget include: extending electricity bill rebates, increasing Medicare bulk billing, and numerous transport infrastructure commitments.
The Budget does not renew commitments to supporting the Pathway to Diversity in STEM, Universities Accord and Research & Development reviews – all landmark STEM and education initiatives of the current Government. The key innovation commitment in this Budget is green metals, building on the Future Made in Australia package detailed in the previous Federal Budget.
Read ATSE’s response to the Budget, and Pre-budget submission.
Details of announcements in portfolios of interest to ATSE are listed below.
Some budget measures match recommendations made by ATSE in recent submissions and reports, including:
The Budget in Reply, delivered by the Leader of the Opposition, the Hon Peter Dutton MP, focused on energy policy, with a new gas reservation scheme announced. The Coalition’s gas reservation scheme would require gas companies to reserve gas from new gas projects for Australian markets, with an aim to use gas as a transition fuel while a domestic nuclear power industry is established.
The gas policy would require new skills, including oil and gas pipeline engineers and petroleum engineers. The Coalition’s nuclear power policy would also require growth in the number of nuclear engineers and technicians, as well as university teaching and research staff qualified to teach this new nuclear workforce – these key levers were not addressed or articulated. Programs such as ATSE’s Elevate: Boosting Diversity in STEM can support development of the future skilled engineering workforce.
The Budget in Reply also notes the Coalition would not continue Labor’s policy for production tax credits for green hydrogen.
ATSE is pleased to see the Budget in Reply also commits to continuing support for the Medical Research Future Fund, and to encouraging business-led tech-powered growth across the economy including in intelligence, cybersecurity, space, and nanotechnology.
ATSE would have liked to have seen more focus on investing in the people and infrastructure driving research and development: today’s innovations are the key to future Australian growth and resilience. There was a missed opportunity to commit to the outcomes of the Strategic Examination of Research and Development. The Budget in Reply does not accelerate the energy transition, nor does it explicitly address climate change mitigation and adaptation. If implemented, the additional emissions profile of the gas reservation policy would need to be considered within the context of the Paris Agreement.