2025-26 Federal Budget puts energy, mining, and metals in the winner’s circle

While the government showed fiscal restraint to manage rising deficits and prevent potential Reserve Bank of Australia (RBA) intervention on interest rates, it introduced significant investments in energy, mining and metals - critical sectors for Australia’s economic growth and energy transition.

The measures built on the $22.7 billion Future Made in Australia agenda, aimed at accelerating clean energy investment and strengthening Australia’s green metals capabilities.

Clean energy investments to drive renewables and grid infrastructure development

The government allocated an additional $2 billion to the Clean Energy Finance Corporation (CEFC) to boost investment in renewable energy and low emissions technologies. Furthermore, it committed $36.9 million to strengthen existing grid infrastructure and established a $10 million Accelerated Connections Fund to expedite project timelines and improve grid access efficiency.

To provide short-term relief, the government extended the $150 energy bill relief for households until the end of 2025 and announced future tax cuts to ease cost of living pressures.

Charlie Jewkes, WSP Managing Director of Water, Power & Energy, said, “The household support measures provide much-needed short-term relief from rising energy costs. However, what we need is for the increased CEFC and grid funding to be used to create long-term solutions that see more renewable energy supplying industries and households.”

According to WSP, the following areas need to be prioritised to achieve long term energy stability:

• Upgrading transmission to connect more renewable projects and avoid network bottlenecks
• Scaling up of long-duration storage like batteries and pumped hydro to firm the grid as coal retires
• Ensuring sufficient domestic gas supply to support firming generation and maintain reliability
• Prioritising the development of the workforce and engineering skills needed to deliver this transformation

“To lower energy costs for consumers and industry, we need to see this funding deployed quickly. Australia has the opportunity to lead the world in energy transformation and to continue to be an energy-exporting superpower, but it requires strong and consistent policy direction, clear investment signals, and a willingness to back critical infrastructure projects at scale,” added Felicity Galluzzo, WSP Director of Power & Energy.

Supporting mining and metals to increase domestic green metals production

The government also delivered substantial support to increase domestic green metals production. It allocated $1.5 billion through the Future Made in Australia Fund for priority areas, including $700 million for green metals.

The green metals sector was a further winner with $2 billion to support Australian aluminium smelter’s transition to renewable energy through the Green Aluminium Production Credit. Additionally, the government established a $1 billion Green Iron Investment Fund to accelerate the development of a new green iron industry.

WSP's Former Managing Director of Mining & Metals, Paul Williams, said, “This year’s Budget supports a fantastic opportunity for Australian industry to process more of our natural resources domestically - while doing so sustainably with renewable energy.

If you would like to find out more about how WSP can help you achieve your energy, mining or metals project goals please contact our team.