Right out of the gates, the 2025-2026 federal budget looked like an antidote to the kind of ferocious chaos we’re seeing on the other side of the Pacific. While there are some notable initiatives that will benefit housing, nature, social equity and the energy transition, overall, it’s a continued build on the groundwork of previous years.
During the Morrison and Abbott years in particular, reading through the individual agency appropriations detail was bound to deliver nasty surprises in the form of major cuts to key agencies in the areas of science and climate. In this budget, the funding is being maintained for bodies including ARENA, the Climate Change Authority, Clean Energy Regulator, CSIRO and the Net Zero Economy Agency.
There’s no major announcement about these, in part because the Australian Public Service is doing the work of these bodies in terms of programs, policy, research, and practical industry support. It’s not being announced as a series of new line-item initiatives that will be outsourced to consultants and contractors.
The rebuilding of the public service and taking in-house of work that is in the public interest and serves the public was one of the major shifts the Albanese government undertook when it first came into office. And it was done in conjunction with establishing or refuelling bodies that can propel the necessary action to support economy-wide decarbonisation.
“Investment in the public service continues to support significant policies and programs to drive our country’s climate action, to transform our energy system to deliver cheaper, more reliable power, conserve, protect and sustainably manage our natural resources, support our businesses and invest in targeted skills, training and employment measures to support our economic transformation,” stated Katy Gallagher, minister for finance and minister for public service in her preface to Budget Paper No 4.
Gallagher singled out initiatives including the establishment of the Net Zero Economy Authority, and additional resourcing in the Industry, Science and Resources and Climate Change, Energy, the Environment and Water portfolios as tangible tools of progressing the transition, including the Future Made in Australia agenda and administration of the Future Made in Australia Innovation Fund.
This is quiet support – BUA for climate action
So, it’s not that this budget doesn’t offer much for climate action; it does – in a quiet kind of “let’s make this business as usual” way.
One tranche of funds that was a big announcement is a top-up for the Clean Energy Finance Corporation to the tune of $2 billion. As we’ve seen, the CEFC turns its dollars into multiplier effects with recent investments reported by The Fifth Estate, including green loans for medical practitioners and sustainable, social and affordable housing.
What it didn’t fund
So, we expect more of that, and thank you. We also happily noted that unlike budgets during the coalition era, there’s no cash splashes for expanding the fossil fuel sector, and not a cent mentioned for potential nuclear energy projects.
Some climate action is also about what a government doesn’t do.
Reducing education fees will help train the necessary workforce
The planned reduction in HECS/HELP debts by 20 per cent and increasing the repayment threshold will benefit anyone who’s been to university. That, of course, includes architects, engineers, energy modellers, prop tech innovators, electric vehicle designers, project managers and carbon experts.
The ramping up of free TAFE places and the extension of the additional apprenticeship support to new energy and construction jobs will also benefit the operationalising of sustainability.
After all, we can’t turn policy into action without boots on the ground and bums on seats in the relevant technical and professional roles.
According to WSP managing director of water, power & energy, Charlie Jewkes, workforce shortages are a major barrier. He says there is still going to be a need for more investment and incentives.
“The energy sector is facing a critical workforce shortage, with demand for skilled workers outpacing supply across a broad spectrum – from trades, engineers, and sustainability experts to energy auditors, project managers, and estimators,” Jewkes told The Fifth Estate.
“The government’s initiatives to reduce HELP/HECS debts and offer free TAFE courses are positive steps in making education and training more accessible, helping to remove financial barriers that often prevent people from pursuing further qualifications. While these measures support workforce development in the construction industry, they are not targeted enough to address the urgent and growing need for clean energy skills.
“A much more comprehensive strategy is required to equip workers with the skills needed to build, maintain, and operate new energy infrastructure. This includes clear pathways for young people through apprenticeships and vocational training, as well as structured programs to support workers currently employed in other infrastructure sectors, and in fossil fuel industries, many of whom already have transferable skills that could be applied to clean energy projects.”
Jewkes said the investment in training and job pathways also needs to be targeted to the regions where clean energy industries are emerging, and that systematic barriers for women, First Nations people and migrants must be addressed.
“Given the majority of new renewable energy projects are in rural and remote areas, expanding education, training and employment opportunities for these groups is not only a matter of equity but also a critical solution to broadening the talent pool and ensuring the workforce is diverse, inclusive and sustainable.”
Tewkes said we needed stronger collaboration between government, industry and the tertiary education sector to meet “real-world workforce demands.”