A more dynamic and productive economy

Revitalising National Competition Policy

In November 2024, Commonwealth, state and territory governments agreed to a 10‑year reform plan underpinned by a $900 million National Productivity Fund. The Productivity Commission estimated a revitalised National Competition Policy could boost annual GDP by up to $45 billion – around $5,000 per household – and reduce prices by up to 1.5 percentage points overall.

Banning non‑compete clauses for low‑ and middle‑income workers

The Government will ban non‑compete clauses for low‑ and middle‑income workers. This will free many Australian workers to move to more productive, higher‑paying jobs and start their own business.

The Government will also close loopholes in competition law that allow businesses to make arrangements that cap workers’ pay and conditions without the knowledge and agreement of affected workers, or block staff from being hired by competitors.

Reforming occupational licensing

The Government will work with the states and territories, unions and employers, on a national occupational licence for electrical trades to allow electricians to move where they are needed most.

Supporting small businesses

Easing the pressure on small business

The Government is extending energy bill relief for six months to the end of 2025. Around one million eligible small businesses will receive up to $150 in rebates directly off their bills. Over the last 3 budgets, energy bill relief has saved small businesses up to $800 on their energy bills.

The Energy Efficiency Grants for Small and Medium Sized Enterprises program is providing $56.7 million in grants of up to $25,000 to over 2,400 businesses, funding a range of energy upgrades, such as replacing inefficient appliances and improving heating systems.

The Government is supporting the hospitality sector and alcohol producers, by pausing indexation on draught beer excise and excise equivalent customs duty rates and by support available under the existing Excise remission scheme for manufacturers of alcoholic beverages and Wine Equalisation Tax Producer rebate. This is estimated to decrease receipts by $165 million over five years from 2024–25.

In addition, the Government expects around 1.5 million sole traders to benefit from the Government’s tax cuts for every taxpayer.

Levelling the playing field

The Government will work with states and territories on extending Unfair Trading Practices protections to small businesses.

The Government is providing $7.1 million over two years to strengthen the Australian Competition and Consumer Commission’s enforcement of the Franchising Code. The Government will extend protections from Unfair Contract Terms and Unfair Trading Practices to businesses regulated by the Franchising Code, subject to consultation.

Digital and cyber security supports

Since the 2023–24 Budget, the Government has committed more than $60 million to help small businesses uplift their digital and cyber security capabilities through the:

• Digital Solutions program
• Cyber Wardens program
• Small Business Cyber Resilience Service
• Cyber Health Check.

These programs help small businesses adopt digital tools and grasp the opportunities that going online offers, and prevent and bounce‑back from cyber‑attacks.

Building a Future Made in Australia

This Budget builds on the Government’s existing $22.7 billion Future Made in Australia agenda.

Cleaner, cheaper energy

The Government is unlocking $8 billion of additional investment in renewable energy and low emissions technologies through a $2 billion expansion of the Clean Energy Finance Corporation. This is in addition to $36.9 million to enhance the use of existing grid infrastructure and a $10 million Accelerated Connections Fund to reduce grid bottlenecks.

Unlocking private investment in priority areas

The Government has legislated $13.7 billion in hydrogen and critical minerals production tax incentives and has allocated $1.5 billion in support for priority areas through the Future Made in Australia Innovation Fund, including:

• $750 million for green metals
• $500 million for clean energy technology manufacturing capabilities
• $250 million for low carbon liquid fuels.

Support for green metals

The $2 billion Green Aluminium Production Credit will support Australian aluminium smelters to transition to renewable energy, and the $1 billion Green Iron Investment Fund will accelerate the development of this new industry.

The Government is also backing in the future of steelmaking in Whyalla by working with the South Australian Government to provide immediate support for the Whyalla Steelworks, local business creditors and the longer‑term transformation of the Steelworks.

Front Door for investors

The Government is establishing a new Front Door for investors with major transformational proposals to make it simpler to invest in Australia and attract more global and domestic capital. From September 2025, the Front Door will begin to act as a single‑entry point for investors, providing priority projects with coordinated facilitation services, guided by an Investor Council.

Supporting Australian businesses

This Budget provides $20 million to support Australian producers through the Buy Australian Campaign, aiming to encourage consumers to buy Australian‑made products.

The Government has exceeded its small‑ and medium‑size enterprise (SME) procurement target of 35 per cent of contracts by value from SMEs, for contracts with a value of up to $20 million, through the success of recent initiatives such as the Buy Australian Plan. It will also drive industry investment and innovation in more sustainable goods and services by applying the Environmentally Sustainable Procurement Policy to a further $4.5 billion of public procurement.

The Government is also supporting businesses through its trade diversification agenda. This Budget provides $16 million for a new Australia–India Trade and Investment Accelerator Fund.

Securing Australia’s place in the world

The Government’s 2024 National Defence Strategy set in motion a transformation of the Australian Defence Force’s capability, focus and structure. This is underpinned by the Government’s investment of $330 billion in the Defence Integrated Investment Program out to 2033‒34, which will mean that Defence funding will exceed 2.3 per cent of GDP by the early 2030s. This includes a $50.3 billion investment provided in the 2024‒25 Budget.

The investment in Defence includes $159 billion in maritime capability over the decade which will support over 8,500 jobs by 2030. Additionally, over 20,000 jobs over the next 30 years will be created to support the nuclear‑powered submarine program.

Australia has already committed more than $1.3 billion in military assistance to Ukraine. This Budget includes further support for more equipment, as well as $36 million over five years from 2024–25 (and $7.8 million per year ongoing) for the Australian Embassy in Kyiv.

This Budget also includes a $44.6 million initial investment in response to the 2024 Independent Intelligence Review.

Thriving cities, suburbs and regions

Delivering transport infrastructure

This Budget provides $17.1 billion over ten years for road and rail projects to improve the productivity and resilience, liveability and sustainability of our cities, regions and communities. This continues to refocus the Government’s over $120 billion 10‑year infrastructure investment pipeline on nationally significant projects.

Completing the NBN

The Government is providing up to $3 billion in equity to complete the rollout of the National Broadband Network (NBN). This investment will provide access to faster and more reliable broadband services to a further 622,000 premises, with 54 per cent in regional Australia.

Keeping our regions connected

The Government is providing up to $130 million in secured loans to keep Rex Airlines operational during its extended voluntary administration to 30 June 2025, while a competitive sale process is held. This will help maintain critical aviation services for regional and remote communities.

Supporting regional banking

The Government has secured commitments from the major banks to continue operating over 800 of their branches in regional and remote Australia until at least 31 July 2027. The banking sector has agreed to increase its investment in Australia Post’s Bank@Post service, providing greater certainty and choice for bank customers in around 1,800 regional and remote communities.

Protecting our environment

This Budget includes $262 million to protect more of Australia’s natural beauty for future generations. This will help meet the Government’s commitment to conserve 30 per cent of Australia’s landmass and marine areas by 2030.

Investing in infrastructure

New South Wales

$2.3 billion for projects in the growing Western Sydney region including:

• $1.0 billion to preserve the corridor for the South West Sydney Rail Extension
• $580 million to upgrade Townson Road, Burdekin Road and Garfield Road West
• $500 million to upgrade Fifteenth Avenue

Victoria

• $2.0 billion to upgrade Sunshine Station
• $1.0 billion Road Blitz

Queensland

• $7.2 billion for safety upgrades on the Bruce Highway

Western Australia

• $350 million for upgrades to the Kwinana Freeway

South Australia

• $125 million for Curtis Road Level Crossing Removal

Tasmania

• $200 million for upgrades to the Arthur Highway

Australian Capital Territory

• $50 million for upgrades to the Monaro Highway

Northern Territory

• $200 million for duplication of Stuart Highway between Darwin and Katherine