The Federal Budget for 2025–26 has delivered funding for energy, manufacturing, and small business initiatives, but reactions from industry groups have been mixed. While the budget provides immediate relief for households and businesses, there are calls for more long-term measures to support clean energy, innovation, and local industry, particularly in regions like the Hunter Valley.
Energy and Clean Manufacturing Investments
The government has committed $8 billion in additional investment for renewable energy and low-emissions technologies, including a previously announced $2 billion expansion of the Clean Energy Finance Corporation. Other measures include $2 billion for Green Aluminium Production Credits to help aluminium smelters transition to renewable power and $1 billion for the Green Iron Investment Fund to develop green iron manufacturing.
The Clean Energy Council welcomed the $150 energy bill rebate for households and small businesses but reiterated its call for a national home battery rebate program.
“Four million Australians have rooftop solar, but only around 180,000 are doubling their savings with access to a home battery,” said CEO Kane Thornton. “That means 95.5 per cent of solar households, already saving $1500 on average on their power bills, could be saving even more through home energy storage.”
He argued that investment in home battery storage would provide more lasting cost reductions and reduce reliance on ageing coal power stations.
Hunter Region and Business Response
Despite the focus on clean energy and manufacturing, Business Hunter CEO Bob Hawes said the region had not received any major direct funding in this budget.
“It’s not a business budget, but we hope that these measures will stimulate the economy by easing household costs and prompting people to spend on products and services they may have been forgoing,” Mr Hawes said.
He noted that Hunter businesses could benefit from the expansion of the Clean Energy Finance Corporation and the $3 billion investment in green metals, given the region’s strengths in new energy technologies and modern manufacturing. He also pointed to increased defence spending and industry grants as potential opportunities for local industry.
However, he expressed disappointment that no new funding had been allocated to Hunter-specific projects, saying, “With at least three federal seats in the region in the balance, we hope to see some money flowing our way once the election is called.”
Support for SMEs and Innovation
The budget also includes measures to support small businesses and innovation, such as $20 million for the Buy Australian Campaign to promote locally made products and a continued commitment to exceeding the government’s target of awarding 35 per cent of procurement contracts to small and medium enterprises.
Engineers Australia welcomed investments in infrastructure, STEM education, and university reforms, which could strengthen the engineering workforce. “A skilled workforce fuelling a strong engineering capability is critical for a sustainable, innovative and productive Australia,” the organisation said in a statement.
While industry leaders acknowledged that the budget provides some economic relief and investment in clean energy and manufacturing, they also stressed the need for more targeted regional funding and workforce development to support long-term economic transformation.
