The Federal Government’s Future Made in Australia agenda has been designed to strengthen the country’s manufacturing sector while driving growth.
Australia’s economic landscape is undergoing a transformation, driven by the global shift towards net zero emissions and intensified geopolitical competition.
These developments are reshaping the value of natural resources, disrupting trade patterns, and spawning new market opportunities.
In this evolving environment, Australia’s inherent strengths, its natural assets, trade partnerships, and commitment to open markets, are all set to play a key role in maintaining and enhancing its competitive edge.
The Australian Government has introduced the “Future Made in Australia” agenda to harness these opportunities and secure the nation’s economic future.
“This legislation is all about unlocking private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well-paid jobs around the country,” said Prime Minister Anthony Albanese.
“It embeds into law a disciplined and rigorous approach that will govern Future Made in Australia investments, to make the most of our net zero potential and ensure the benefits of these investments are widely shared and flow to local communities.
“This package does three main things. It will legislate our new National Interest Framework, introduce a robust sector assessment process, and outline the Community Benefit Principles that will apply to investment decisions.”
At its core, the initiative aims to drive private sector investment into key industries while strategically using public funds to address gaps and stimulate growth.
The newly established National Interest Framework is central to this strategy, providing a structured approach to evaluate and guide significant public investments.
The framework is divided into two main streams:
- The Net Zero Transformation Stream focuses on industries crucial for achieving emissions reduction and maintaining long-term competitive advantage.
- The Economic Resilience and Security Stream addresses sectors vital for national security and economic stability where private investment alone may not suffice.
Additionally, the government’s investment approach includes community benefit principles, emphasising support for local communities, skills development, and job security.
This comprehensive strategy is outlined in the framework, which will inform decisions on major public investments, including those related to Australia’s ambition to become a Renewable Energy Superpower.
The 2024–25 Budget reflects this vision, with targeted incentives designed to foster private sector growth in renewable energy and related technologies.
Beyond this, the Future Made in Australia package encompasses broader investments aimed at advancing critical technologies and creating a more competitive business environment.
Treasury will oversee the implementation of the National Interest Framework, with more details to be disclosed as part of the legislative package.
In navigating these global shifts, Australia is positioned well to leverage its strengths to drive economic growth and resilience.
Modernising and diversifying Australia’s industrial base is central to the government’s plan to benefit from global economic changes.
Meanwhile, the 2023 Employment White Paper emphasises how coordinated industry and regional policies, along with a supportive environment, can create a dynamic and inclusive labour market.
The Future Made in Australia package in the 2024–25 Budget supports this goal by attracting investment, promoting renewable energy, enhancing resource value, and strengthening economic security.
This includes targeted public investment to align economic incentives with national interests and encourage private investment in priority industries such as food and beverage manufacturing.
Achieving global net zero emissions remains crucial and stakeholders agree that effective policies are needed to address emissions, drive decarbonisation, encourage long-term investment in clean technologies, and to capitalise on economic opportunities.
This environmental challenge also presents an opportunity for private investment and improved productivity.
Increasing geopolitical risks and recent global events, such as the COVID-19 pandemic, have heightened the focus on economic resilience with many major economies now renewing industrial policies.
In a statement from the Australian Council of Trade Unions, Michele O’Neil, ACTU president, said the organisation supported the Future Made in Australia plan.
“We can’t leave Australian workers behind; we need to grab the opportunity that our amazing natural resources give us,” said O’Neil.
“Where we put workers and communities at the heart of the transition by embracing a strong role for government with conditions on how public money is spent.
“In the transition to net zero by 2050, we are projected to create between one and two million new direct jobs over the next 25 years.
“By fulfilling our potential as a world leader Australia can not only support local jobs and the reduction of Australia’s climate pollution, but also contribute to cutting the world’s climate pollution.
“Future Made in Australia leverages our unrivalled sun and wind power to create the jobs and build the industries that will form the backbone of the clean energy economy and the key to our national security.”
The Future Made in Australia agenda aims to tackle the key structural and strategic challenges facing the Australian economy.
The State of the Industry report details the importance of food and grocery manufacturing to Australia’s economy.
Key highlights:
- Increase in value: Turnover, or the value of the sector, increased by 11.6 per cent to $163 billion, reflecting strong demand from a year of record immigration and increased wholesale prices. Many wholesale prices rose for the first time in a decade.
- Profitability Challenges: Despite higher top line growth, operating profit fell by 7 per cent to $7.2 billion due to persistent cost pressures from commodities, energy, and shipping rising faster than wholesale prices.
- Employment Impact: Employment rose by 4.1 per cent to 281,269 workers, with 37 per cent of jobs based in regional areas, emphasising the sector’s growing importance as a major employer across Australia.
- Incentives boost investment: Government’s temporary full expensing tax measure helped stimulate capital, investment which rose by 24.5 per cent to $4.2 billion, largely directed towards plant and equipment upgrades, particularly in automation to counter labour shortages and enhance efficiency.
Australian Food & Grocery Council Tanya Barden CEO said the importance of the food and beverage manufacturing sector could not be underplayed.
“Our industry is a cornerstone of the Australian economy, providing essential goods and employment for over 280,000 Australians. Recent and ongoing global supply chain disruptions have made our industry even more critical from a national resilience perspective,” said Barden.
Barden said investment in the industry needed to increase in coming years to prepare for the continued clean energy and circular economy transition and the continued adoption of digital technologies.
However, according to industry figures, suppliers are still struggling with lower profitability and rising
living costs.
This makes it harder for the industry to cover the increasing expenses for energy, labour, transport, warehousing, and insurance.
Barden said the Future Made in Australia policy is a critical step to keep jobs and production in Australia’s largest manufacturing sector.
“We urge the government to back this key industry by implementing tax incentives for food and grocery manufacturing to be globally competitive, contributing to Australia’s economic prosperity, as well as net zero transition,” she said.