Treasurer Jim Chalmers yesterday unveiled the Labor Government’s 2023-24 Budget, part of which includes an Energy Savings Package, a new $2 billion Hydrogen Headstart program, $38.2 million for a Guarantee of Origin scheme and $2.0 million to establish a fund to support First Nations people and businesses to engage with hydrogen projects.
The $2 billion Budget investment in hydrogen aims to position Australia a world leader in producing an exporting hydrogen while reducing our emissions in heavy industry.
“The government is making the biggest ever investment in Australia’s energy transformation. This budget allocates $4 billion to realising our future as a renewable energy superpower, bringing the government’s total investment to more than $40 billion,” Chalmers said.
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“This includes part of our $15 billion national reconstruction fund to support the development of green industries, manufacturing and more, and a new capacity investment scheme that will unlock over $10 billion of investment in firmed-up renewable energy projects up and down our east coast.”
A new Powering Australia industry growth centre to help Australians businesses manufacture renewable technologies will also be funded, plus $286 million of investment in the creative sector.
The government will also be investing $1.3 billion to establish the Household Energy Upgrades Fund, to help provide low-cost loans for double glazing and solar panels and other improvements that will make homes easier and cheaper to keep cool in summer and warm in winter.
The Small Business Energy Incentive scheme will ensure small businesses with a turnover of up to $50 million will be eligible for a $20,000 tax break if they invest in energy efficiency upgrades.
Budget 23-24 has been welcomed by industry.
Australian Hydrogen Council CEO Dr Fiona Simon said, “Tonight’s budget is exactly the signal the market needed to remember and then act on—the fact that Australia has the potential to be a world-leading hydrogen producer.
“The AHC commends the Albanese Government for this demonstration of confidence in the vital role that renewable hydrogen has to play in the energy transition, and in Australia’s vital role to be a hydrogen producer for our region.”
Rewiring Australia has declared $1.6 billion in new spending as Australia’s first ‘electrification budget’, which will simultaneously address two of Australia’s biggest challenges: reducing cost of living pressure and cutting greenhouse emissions.
Rewiring Australia co-founder and chief scientist Dr Saul Griffith said the budget was a “profound reset of climate and energy policy after a lost decade under the previous government”.
“This is Australia’s first electrification budget. It positions us to become a world leader in the efficient electric energy system of the future. It demonstrates federal ministers have worked hard to start the massive shift towards a new energy paradigm across the economy,” Dr Griffith said.
“The electrification budget builds on Australia’s love affair with rooftop solar. It will help households to realise cost savings from substituting expensive gas machines for clean, electric alternatives. Tonight’s investment allows us to use abundant Aussie wind and sunshine to power more of our driving, cooking and heating, simultaneously slashing energy bills and carbon emissions.
“We are excited to work with the government over the coming year to optimise the energy system to this commitment to electrification and make these investments go further, and further cut energy costs. We are excited that the government is making a substantial downpayment on an answer to the US Inflation Reduction Act.”
The Climate Council has dubbed the Budget measures as a “slow jog” in the race to tackle the climate crisis.
Climate Council CEO Amanda McKenzie said, “The measures in this budget for cost of living are, for the most part, temporary. This is a missed opportunity to permanently lower people’s power bills. To meet the climate challenge head on, Australia needs to urgently unlock the most affordable energy source available, renewables.
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“Sure, this Budget provides renewables assistance to 170,000 households. But when you consider the critical challenge of electrifying everything with renewable power, backed with storage, for 10.8 million households, that barely gets us off the starting blocks.
“The Labor Government has demonstrated in this Budget that they want to support Australians who are struggling. Climate change makes every Australian vulnerable, so the scale of investment on climate action needs to match the task ahead of us.
“We can’t settle for a slow jog when the climate crisis calls for a sprint. Climate change is already reshaping our world, the government needs to fundamentally re-shape the Budget to tackle it.”
