Federal Budget 2025–26: Boost for technology amid global uncertainty

The Federal Budget 2025–26 presents opportunities for the technology sector in Australia, particularly in clean energy, advanced manufacturing and infrastructure innovation. 

A key centrepiece is the ‘Future Made in Australia’ initiative, which includes significant investments in support of green metals production and low-emissions manufacturing. The Budget also includes mention of a significant sector funding allocation from the Future Made in Australia Innovation Fund, aimed at scaling up critical capabilities in clean energy technology manufacturing and low-carbon liquid fuels. These measures not only support the domestic technology sector but also signify to international markets that Australia is open to innovation.

A new ‘Front Door’ for investors – launching in September 2025 – will provide a single entry point for foreign investors in major transformative projects and streamline investment pathways in critical and emerging industries, promising to make it simpler to invest in Australia and to attract more global capital. 

However, the Budget falls short of addressing calls for more targeted investments in the technology sector itself, particularly in promoting technology businesses and creating incentives for local technology research and development. The Government also made no new funding commitments to the advancement of artificial intelligence or quantum computing beyond that announced in the 2024-25 Budget. 

So, while the 2025-26 Budget offers some strategic direction for Australia’s technology and innovation sectors, these sectors (like most) will continue to face challenges from ongoing trade tensions, supply chain uncertainty and persistent high inflation.

This article was prepared with the assistance of Annabelle Duke, Law Graduate.