The Federal Government has unveiled its 2025–26 budget Building Australia’s Future, with key funding allocated to drive the energy transition and fast-track the nbn.
Prime Minister, Anthony Albanese, said this budget is securing Australia’s future during a time of global uncertainty by making the economy more productive and more resilient.
“Our best defence against global pressures is a stronger economy, and that’s what we are building in this Budget,” Mr Albanese said.
“We’re making our economy more dynamic by advancing National Competition Policy reforms and investing in productivity-enhancing infrastructure, including the National Broadband Network (nbn).
“We’re building a Future Made in Australia – creating jobs and opportunity for generations of Australians as we continue the work of making our country an indispensable part of the global net zero transformation.”
The Federal Government said that Australia’s potential for abundant renewable energy is a powerful source of comparative advantage and security, which is why the 2025–26 budget is unlocking $8 billion of additional investment in renewable energy and low emissions technologies through a $2 billion expansion of the Clean Energy Finance Corporation (CEFC).
This is in addition to $36.9 million to enhance the use of existing grid infrastructure and a $10 million Accelerated Connections Fund to reduce grid bottlenecks.
To incentivise private investment in priority areas, the Budget also includes $13.7 billion in hydrogen and critical minerals production tax incentives and has allocated $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.
The Federal Government also said it will be revitalising National Competition Policy, which includes abolishing around 500 tariffs, boosting competition in the financial system, reforming skills, education and aged care, and modernising the energy grid.
Completing the nbn
The 2025–25 Budget also allocates up to $3 billion in equity to complete the rollout of the nbn across Australia.
The Federal Government said this investment will provide access to faster and more reliable broadband services to a further 622,000 premises, with 54 per cent in regional Australia. Upgrades are expected to be completed by 2030.
With this investment, alongside the Universal Outdoor Mobile Obligation – which establishes continent-wide SMS and basic voice service – the Federal Government said that Australians will be better connected, safer and more secure.
A boost for disaster recovery
In the wake of Ex-Tropical Cyclone Alfred, the Federal Government said that the 2025–26 Budget will provide a lifeline to impacted communities across southeast Queensland and northern New South Wales.
After ex-Tropical Cyclone Alfred, the Federal Government said it expects that total costs for national disaster support will continue to rise to at least $13.5 billion. To plan for these future costs the Budget has provisioned $1.2 billion in the Contingency Reserve to help better respond to, and recover from, future disasters.
Cutting cost-of-living and driving equality
The 2025–26 Budget also allocates $1.8 billion to extend energy bill relief (to the end of the 2025 calendar year) for every household and around one million small businesses.
The Federal Government said that energy bill relief has already helped to lessen electricity price increases, with prices dropping 25.2 per cent across 2024, and the additional federal rebates are expected to maintain downward pressure on prices.
According to the Federal Government, retail market reforms will also help energy customers access cheaper deals and could save households hundreds of dollars off their annual bill. These changes will make it easier for consumers to switch to a better deal, ensure people receive their entitled concessions and rebates and prevent retailers from automatically rolling over contracts to higher-cost deals.
The 2025–26 Budget also pledges $1.3 billion over six years starting from 2024–25 to support stronger outcomes for First Nations Australians and to close the gap.
This includes $842.6 million to support critical services in remote First Nations communities in the Nothern Territory.
To read the full 2025–26 Federal Budget, visit https://budget.gov.au/content/overview/download/budget-overview.pdf
