The 2025–26 Federal Budget has reconfirmed the Australian Government’s commitment to the critical minerals sector, with continued investment in downstream processing and production tax credits.
Key funding announced in the Budget includes:
“The [Federal] Government’s $700 million support for green metals, $2 billion Green Aluminium Production Credit, and the $1 billion Green Iron Investment Fund are welcomed announcements,” global engineering firm WSP managing director of mining and metals Paul Williams said.
“These will provide a significant opportunity to process and refine more of Australia’s natural resources in Australia, while doing it more sustainably using renewable energy.
“At the same time, this support highlights the need for more investment in the mining sector, so it can provide a steady supply of critical minerals to these processing industries.”
The Minerals Council of Australia (MCA) similarly welcomed the support for the critical minerals sector.
“The MCA welcomes the continuation of the Future Made in Australia production tax credits as a positive step,” MCA chief executive officer (CEO) Tania Constable said.
“These incentives are important for Australia’s critical minerals processing sector, ensuring global competitiveness and attracting long-term investment.”
However, industry groups argue that while these measures support established and downstream operations, more attention is needed for early-stage exploration.
A report by BDO found that the junior minerals exploration incentive has stimulated $404 million in greenfield exploration since 2017, generating significant returns for the economy and government revenue.
“After eight years of a successful program, we’ve been working with the government to evolve the incentive to be even more impactful,” Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce said.
“We are expecting that both major parties will address measures in the upcoming election to support the exploration sector in Australia, because without exploration you can’t find the mines of the future.”
While the budget delivers crucial support for critical minerals and infrastructure, industry leaders stress that maintaining a strong exploration pipeline is essential for securing Australia’s long-term resource future.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.