What the 2024 budget means for Australia’s new economy
Jim Chalmers' federal budget seeks to balance a longer-term economic vision with the more politically pressing need to address cost of living pressures. The Capital Brief team dissects what it means for the different sectors in Australia's new economy.
From production tax credits for critical minerals and green manufacturing, to streamlining foreign investment decisions and allocating specific money pots for deep tech prospects such as quantum computing, the government is seeking to frame Tuesday’s federal budget as one that balances a longer-term economic vision with the immediate need to address the cost of living political hot potato.
The Albanese government fleshed out some detail of its signature Future Made in Australia initiative, which aims to support green manufacturing initiatives that are in the national interest or where Australia has a comparative advantage.
While the headline figures appear generous, many of the announced programs run substantially beyond the four-year estimates. For example, production tax credits for critical minerals and hydrogen are projected to run until 2040.
The new funding was generally well received by industry groups, though with the usual caveats that rigorous frameworks are needed to ensure that support goes to companies and projects with the strongest business cases, to prevent a new herd of white elephants.
