The Chamber of Minerals and Energy WA (CME) notes the release of the 2025-26 Federal Budget, which contains substantial cost of living relief for all Australians funded in part by the sustained success of the resources sector.
After strong commodity prices helped the Commonwealth record its first consecutive surpluses in nearly two decades in FY23 and FY24, the resources sector is forecast to again make a significant contribution to the national balance sheet through taxes and royalties in FY25.
Around one quarter of corporate tax comes from the resources sector, while workers in Australia's highest paying industry are also an important source of income tax.
That revenue has helped the Commonwealth fund a range of cost-of-living support for Australians including $17.1 billion in new income tax cuts, a $1.8 billion extension of electricity bill subsidies, an $8.4 billion expansion of Medicare bulk-billing, $689 million to cap PBS medications at $25 and $427 million to increase childcare subsidies.
CME Chief Executive Officer Rebecca Tomkinson also welcomed confirmation of several Future Made in Australia measures in the Budget, which address a range of recommendations in the Chamber's Federal Pre-Budget Submission.
However, she said substantial work remained to improve Australia's investment attractiveness and ensure the resources sector remained well-positioned to continue supporting national prosperity into the future.
"Easing the immediate cost of living burden on struggling families is essential," Ms Tomkinson said.
"But the best way to deliver long-term, sustainable cost of living relief that doesn't push the Federal Budget further into deficit is by supporting industry to grow.
"Successful businesses can pay their workers higher salaries. The WA resources sector is a shining example, supporting 6 per cent of all jobs in Australia and offering average earnings 57 per cent higher than the national average.
"The minerals and energy produced in WA are also critical ingredients in low-emission technology including solar panels, wind turbines and batteries, helping both Australia and the rest of the world to decarbonise.
"We know the globe needs our resources and the Commonwealth has acknowledged it needs the private sector to 'lean in' and invest to ease pressure on the national balance sheet.
"The missing piece is fundamentals that give business the confidence to deploy their capital in Australia - including affordable and low-emission energy, efficient project assessments and stable and predictable workplace laws and environmental reforms."
Key recommendations from CME's Pre-Budget Submission that were not addressed include cutting Australia's corporate tax rate to a more globally competitive 25 per cent, increasing the Fringe Benefit Tax concession for employer-sourced housing in remote areas and committing to the repeal of recent IR reforms that have reduced the competitiveness and productivity of the WA resources sector.
Key measures in the Budget include:
- Legislation of the Critical Minerals Production Tax Incentive ($7 billion over the 11 years from 2023-24) and Hydrogen Production Tax Incentive ($6.7 billion over the 10 years from 2024-25).
- Green Aluminium Production Credit - $2 billion available from 2028 to support Australia's aluminium smelters to transition to renewable electricity.
- Green Iron Investment Fund - $1 billion to support "early mover green iron projects and help overcome the initial capital hurdle of investment". Up to $500 million has already been allocated to the Whyalla steelworks.
- Green Metals Innovation Fund - $750 million to develop and commercialise green metal technologies and processes, including funding for pilot and demonstration projects.
- Hydrogen Headstart Fund - up to $814 million awarded to the 1,500MW Murchison Green Hydrogen Project in WA in production incentives to use wind and solar power to create green ammonia for export.
- Clean Energy Manufacturing Fund - $500 million to support clean energy manufacturing, including wind tower steel fabrication, battery and storage technologies, hydrogen electrolysers and more.
- Low Carbon Liquid Fuels - $250 million in grant funding to accelerate the domestic supply of sustainable fuel and renewable diesel to benefit transport and mining sectors.
- Capacity Investment Scheme (CIS) - four battery projects totalling 654MW successfully bid for support in WA's first tender.
