Is this the blueprint for a greener, smarter Australia?

The 2024 Federal Budget, unveiled in a year marked by a cost-of-living crisis, urgent environmental needs and rapid technological advances, aspires to nurturing a greener, smarter Australia.

It’s a step in the right direction for the kind of strategic investment needed to tackle the energy transition, sovereign capability and our economy. It also plants the seeds for future growth. But as we race to meet our net-zero ambitions, will it meet the objectives?

At the heart of this directional shift is the Future Made in Australia program, a multi-faceted strategy designed to move Australia away from its traditional reliance on raw material exports toward a more diversified and resilient economic structure built on innovation and advanced manufacturing. This approach mirrors efforts in the US and Europe, positioning Australia not just to compete but also to lead internationally, by capitalising on its natural assets.

The program’s $68 million foundational investment is part of a broader $1.7 billion commitment aimed at moving Australia to the top of the global tech playing field. Notable allocations include $566.1 million for resource mapping, $466.4 million for quantum computing and $448.7 million for international collaboration in satellite technologies.

Beyond the silicon and software, there's a whopping $19.7 billion earmarked to establish Australia as a renewable energy superpower. This fund is marked for sectors that underpin the transition to a low-carbon economy, including hydrogen energy, green metals, solar and battery technology. These industries are not only future-focused but also future-critical, and the Government’s funding points to their anticipated central role in Australia’s economic future.

Australia's pursuit of net clean hydrogen is a key pillar of Future Made in Australia, leveraging hydrogen's “Swiss Army Knife” versatility across the transport, industry and power sectors. Establishing a robust regulatory and policy framework, along with substantial funding for research, development and commercialisation, can unlock significant opportunities in the hydrogen industry. 

Digital transformation and AI also get a boost with significant investment aimed at integrating these technologies across various sectors of the economy. While this is a move in the right direction, the actual breadth and integration of these initiatives will be crucial.

Education and workforce training receive a welcomed $91 million boost to the VET sector, $55.6 million for the Building Women’s Careers in traditionally male-dominated industries, $38.2 million to increase diversity in STEM education and industries and $10 million in 2025–26 to establish a National Hydrogen Technology Skills Training Centre.  

While these ambitions are commendable, the Budget is not without its blind spots. The Government must invest more to prepare us for the seismic shifts in the workforce needed for the energy transition. This involves not only equipping workers with skills relevant for today's technologies but also ensuring they are adaptable to future innovations through upskilling or reskilling. 

With the new Commonwealth Prac Payment, students in key fields such as teaching, midwifery and social work now get $319.50 a week during their practical placements. Given our shortage of engineers, the Government must extend this support to STEM occupation students. If we truly want a smarter future, we need to make it easier for tomorrow’s innovators to support themselves and their families as they prepare to drive Australia’s progress.

The Budget also aims to boost local manufacturing and innovation, but it does not fully address the need for enhancing Australia's supply-chain resilience. Ensuring a robust supply chain for critical materials and technologies is vital for the country's economic security and sovereign ambitions. 

Also missing is the required investment in R&D that will be critical to Future Made in Australia’s success. By allocating substantial resources to R&D both for universities and research organisations like the CSIRO, the program can drive innovation and support the development of cutting-edge technologies that are crucial for revitalising and sustaining Australia's industrial sector.

Investing in R&D also attracts talent and encourages collaborations between universities, research institutions and industries. Ultimately, this approach is essential for achieving sustainable economic growth and securing Australia’s position as a leader in global innovation.

The Government must also address concerns of “picking winners” and that Future Made in Australia could be exploited for political gains. It is essential it has access to professional, balanced technical advice and robust structures to assess risk and feasibility.

Overall, the 2024-25 Budget sees a government trying to reduce the cost-of-living stress while ushering in an era of transformation via defence, manufacturing, technology, energy and infrastructure. 

As Australia charts its course towards an innovative and sustainable future, it will be the real-world application of these ambitions that will decide their success. 

Engineers and all sectors of industry will be critical to bringing this vision to life. It is their expertise and innovation that will turn policy into practice, ensuring that the future made in Australia is as bright as the Government envisages, and the community hopes for.