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Albanese's Future Made in Australia path narrows as crossbench raises concerns

With the Coalition set to oppose Future Made in Australia, Labor must convince a sceptical crossbench to back its flagship legislation.

Finn McHugh and Anthony Galloway
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Labor needs a deal with the cross bench over its Future Made In Australia plan. AAP/Dean Lewins.

Labor’s flagship Future Made in Australia (FMIA) plan is in jeopardy just months before the election, with several crossbenchers raising concerns that may prove irreconcilable.

The Coalition party room formally agreed to oppose the bill this week, arguing that the plan would grant the minister too much discretion over the $22.7 billion in new spending measures. These measures include a $1.7 billion innovation fund to develop emerging industries and $13.7 billion in tax breaks for green hydrogen and processed critical minerals from 2027-28.

Labor does not technically need to pass the legislation to spend the money, which is already allocated in the budget. However, Treasury has called for proper “guardrails” around the spending, with the bill introducing a framework to ensure that allocated funds would either target areas of comparative advantage for Australia in the transition to net zero emissions, or be a matter of national security or economic resilience.

The Coalition is opposing the bill, leaving Labor needing a deal with the crossbench. AAP/Mick Tsikas.
The Coalition is opposing the bill, leaving Labor needing a deal with the crossbench. AAP/Mick Tsikas.

While expected, the Coalition’s decision leaves Labor with a narrow path to pass the FMIA plan through Parliament, requiring support from the Greens and at least three other crossbench senators.