What the 2025 Election Means for Australian Business: Policy and Funding Highlights
Following the recent election and the pre-election 2025-26 Federal budget, the re-elected Labor government is expected to forge ahead with its plans to strengthen the capabilities of its hand-picked, priority Australian industries through a range of funding programs and policy initiatives. Here’s a quick summary of what Australian businesses can expect the government to deliver.
Future Made in Australia: $22.7B Investment Secured
The government’s flagship initiative, Future Made in Australia (FMIA), will now push forward with a decade-long $22.7 billion commitment. The program is designed to maximise opportunities as the country continues to move towards net zero and secure Australia’s place in a changing global environment. Key sectors set to benefit include:
Renewable hydrogen
Critical minerals processing
Green metals
Low-carbon liquid fuels
Clean energy manufacturing.
The passage of the Future Made in Australia (Production Tax Credits and Other Measures) Act 2025 in February solidifies this commitment, providing production incentives to critical minerals and hydrogen producers starting from 1 July 2027.
Emphasis on Sustainability and Renewables
Clean energy and decarbonisation remain front and centre of the Albanese government’s planned industry investments. A new $1 billion Green Iron Investment Fund will support low-emissions manufacturing, including a major revamp of the Whyalla Steelworks. This will position Australia at the centre of the global green iron market.
Additionally, a total of $56.7 million has been earmarked for Energy Efficiency Grants, offering grants of between $10,000 and $25,000 per eligible SME. This funding will be used to support a range of energy upgrades, such as replacing inefficient appliances and improving heating systems. Over 2,400 small and medium businesses are expected to benefit.
Key Innovation Programs Continue
It is expected that the re-elected government will continue to support new rounds of cornerstone funding programs that facilitate Australian business R&D, research collaboration and innovation, including:
Industry Growth Program: Helping businesses commercialise innovative products and services. See our recent analysis of the funding recipients to date under this popular program.
National Reconstruction Fund: This $15billion fund will now be continued with the objective of diversifying and transforming Australian industry via a range of financing arrangements that drive investment in priority areas of the economy.
Cooperative Research Centres Projects (CRC-P): Promoting short-term research collaborations between industry and research partners, the most recent round closed in February with a new round (Round 18) anticipated to open in the second half of 2025.
Cooperative Research Centres (CRC) Grants: Supporting medium to long-term, industry-led research collaborations, the most recent round (Round 26) commenced in March 2025, with Stage 1 outcomes due in July and Stage 2 expected to open in August.
Continuation of these programs and others that support cutting-edge research and industry collaboration (such as the Medical Research Future Fund) are essential for advancing Australia's innovation ecosystem and securing future economic prosperity.
New Minister for Industry and Science
In the election aftermath, Senator Tim Ayres has been appointed Minister for Industry and Innovation and Minister for Science, taking over from Ed Husic. Mr Ayres brings strong credentials from his previous trade role and is expected to maintain momentum behind FMIA and Australia’s broader industrial strategy. His appointment has been generally welcomed by industry stakeholders, including the Australian Computer Society, which expressed enthusiasm for his commitment to advancing Australia's 21st-century industry capabilities.
Additional Insights for Australian Innovation, R&D, and Start-ups
Strategic Examination of R&D: Led by an independent expert panel, this comprehensive R&D system review aims to strengthen Australia’s science and innovation sectors, boost business investment, and align research efforts with national priorities to support economic growth, net zero goals, and sovereign capabilities. Intellect Labs’ recently shared a summary of our submission to the review which is expected to conclude in December 2025.
Support for Trades & Apprenticeships: The government will be implementing incentives to address labour shortages in the construction sector, including up to $10,000 for eligible apprentices that extends the incentives currently available. Together with a continuation of the Priority Hiring Incentive and a $54 million investment to accelerate the uptake of modern housing construction methods, the government is seeking to address the growing demands for housing and infrastructure.
The Bottom Line
The re-elected Labor government has set a clear direction for Australia’s future with a focus on clean energy, renewables, and advanced manufacturing. It remains to be seen whether better support for innovation and true R&D reform can be achieved with limited signs of promise provided in Labor’s pre-election Federal budget.
Perhaps the ongoing Strategic Examination of Australia’s R&D system will deliver meaningful outcomes for Australia's flagging R&D and innovation metrics. It does appear, however, that the Albanese government has the rare opportunity of a (likely) multi-term mandate to seize the moment, align funding and policy with national priorities, rebuild Australia’s standing as a global innovator and make the most of the opportunities that lie ahead.
Get in touch if you’d like to understand how policies and funding are aligned with your business and to ensure your strategies factor in the Federal government’s emerging priorities.