Tonight's Federal Budget represents another missed opportunity to safeguard Australia's economy from looming domestic and international challenges.
The government's own figures confirm the role of the mining sector in driving Australia's economic growth off the back of higher than anticipated export earnings, yet tonight's Budget abandons the very industry that delivered this windfall.
By quietly abandoning the Junior Minerals Exploration Incentive (JMEI), the government has sent a clear message: Australia's mining industry is being ignored at precisely the moment we should be securing our resource future.
The decision is a severe setback for exploration investment, undermining investor confidence and weakening Australia's long-term mineral resource pipeline.
Without this pipeline, there is no downstream processing and manufacturing.
A renewed focus on 'buy local' to support industry comes too late for many businesses already weakened by uncompetitive industrial relations policies, soaring energy prices, and restrictive regulations. You can't champion Team Australia while sabotaging Australian industry.
Australia's ability to respond effectively to global trade pressures and tariffs has been severely compromised by domestic policies that have eroded our industrial base and competitiveness.
Rather than implementing urgently needed reforms to strengthen productivity, attract business investment, and control spending, the government has missed yet another opportunity, continuing to rely on mining revenues to cover uncontrolled expenditure.
The Budget clearly highlights a deep and widely recognised problem – Australia's fiscal position is deteriorating, yet the government has failed to take meaningful action to address it.
Persistent deficits, spiralling spending, declining productivity, and a national debt nearing one trillion dollars are well-known problems. Yet tonight's Budget offers no solutions, instead continuing to rely heavily on revenues from mining to sustain unchecked spending, rather than addressing structural weaknesses.
The Government's decision this week not to introduce a broader approach to environmental reconsiderations is yet another example of a lost opportunity to improve Australia's productivity and competitiveness.
Productivity growth remains sluggish, and although business investment growth is forecast to improve, mining investment is expected to remain weak.
Treasury's subdued outlook for mining investment underscores an urgent need for government action to reverse declining competitiveness and attract new investment to underpin Australia's economic future.
The MCA welcomes the continuation of the Future Made in Australia production tax credits as a positive step. These incentives are important for Australia's critical minerals processing sector, ensuring global competitiveness and attracting long-term investment.
Increased investment in common user infrastructure, such as ports, power, water, rail and roads can unlock mineral wealth and support regional and remote communities across every Australian state and territory for decades to come.
The north-west minerals province in north-west Queensland alone is estimated to hold more than $600 billion in minerals value. Opportunities also exist in Tasmania, WA, Victoria, NSW, NT and South Australia.
However, access to this boom for our regions and the nation require a cross-government approach to planning, funding and developing common-user infrastructure. Without this Australia will struggle to unlock new minerals provinces and deliver local, regional and national benefits for all Australians.
At a time of escalating geopolitical uncertainty, Australia urgently needs a resilient private sector to navigate the volatility of global markets and secure our economic and strategic interests.
However, rather than strengthening industry competitiveness, the government continues to undermine business through restrictive policies and excessive regulation, placing Australia's industries at a severe disadvantage compared to international competitors.
Without decisive and fundamental action, Australia's economic and fiscal problems will only deepen.
Tonight's Budget needed bold reforms to put Australia back on a sustainable fiscal path and deliver long-term prosperity.
Instead, it leaves Australians stranded.
