The Australian federal government has delivered a multi-billion-dollar boost to the nation’s mining and metals sector to secure long-term economic resilience and support the net-zero transition.
The government has committed to leaving mining tax settings unchanged, providing much-needed fiscal certainty for the mining sector.
The government also earmarked substantial investments to support critical facilities that support domestic productions.
The government set aside AU$1 billion for the Boyne Island aluminium smelter in Queensland. Matched by the state government, the funding is set to unlock nearly AU$7.5 billion in private investment, transition the facility to renewable power, and secure its operations through to 2040.
The budget also extends a lifeline to regional industrial hubs, providing AU$222.6 million for the ongoing operations of the Whyalla Steelworks and support for workers at the Liberty Bell Bay manganese smelter while new owners are sought.
To insulate Australia from global supply chain shocks, the government has formalised the Critical Minerals Strategic Reserve.
Drawing from a AU$5 billion Critical Minerals Facility, the reserve will initially focus on antimony and gallium, which are essential for high-tech manufacturing and rare earth elements, vital for advanced military equipment and the green energy transition.
An additional AU$150 million has been set aside for selective stockpiling, ensuring Australia remains a reliable partner in the global “high-vis” economy.
Addressing a long-standing handbrake on the sector, the Federal Budget allocates AU$105.9 million to fast-track environmental approvals under the EPBC Act using Artificial Intelligence. This aims to clear a massive backlog of mining projects and 5,000 kilometres of essential transmission lines.
Further productivity measures include AU$47.6 million for single assessment bilateral agreements with states, permanent instant asset write-offs for small businesses within the mining supply chain and accelerated skills assessments and licensing for migrant tradespeople to combat a looming talent crunch.
Minerals Council of Australia CEO Tania Constable praised the government’s stable approach, noting that backing mining funds the very services Australians rely on.
“Backing mining supports national resilience, because a stronger mining sector can make an even bigger contribution to help fund Medicare, education, defence and other vital services and infrastructure,” Constable said.
“By leaving mining tax settings unchanged in the 2026-27 Federal Budget, the Albanese government has stood up for Australia’s largest taxpayer which is supporting the nation during uncertain times.”
