Energy future plan

The Australian Government’s 2023-24 Budget is funding nation-building new industries, and initiatives to help consumers save on energy bills.

Energy Savings Plan

Households and businesses will be able to access energy upgrades to improve their energy use and save on their energy costs, with a $1.6 billion Energy Savings Plan.

As part of this package:

  • $1.3 billion will be invested to establish the Household Energy Upgrades Fund.  This fund will provide $1 billion to the Clean Energy Finance Corporation (CEFC). CEFC will partner with banks and other lenders on upgrading homes with battery-ready solar PV, modern appliances and other improvements. This will help more than 110,000 households reduce their energy bills.
  • The fund also includes $300 million to support upgrades to social housing, co-funded and co-designed with the states and territories. It’s estimated that around 60,000 social housing properties will save up to one-third of their energy consumption from upgrades each year.
  • $310 million in tax relief through the Small Business Energy Incentive will provide businesses (with annual turnover of less than $50 million) with an additional 20% deduction on spending that supports electrification and more efficient use of energy. The bonus tax deduction will be available for up to $100,000 of total eligible expenditure (with the bonus tax deduction being $20,000). Up to 3.8 million businesses will have access to the incentive from 1 July 2023 to 30 June 2024.

Hydrogen production

  • $2 billion for Hydrogen Headstart, providing support for large-scale renewable hydrogen projects through competitive hydrogen production contracts. This investment will build domestic experience and expertise, and position Australia to take advantage of the immense jobs and investment potential of the technology.
  • $38.2 million for a Guarantee of Origin scheme, which will certify renewable energy and track and verify emissions from clean energy products – in particular, hydrogen.

$5.6 million will support further work before the end of 2023 on the best ways to leverage Australia’s competitive strengths in renewable energy, critical minerals and highly skilled workforce to accelerate our other clean industrial and manufacturing capabilities.

National Net Zero Authority

The Australian Government is establishing a new authority to ensure the industries and communities that have powered Australia for generations can seize the opportunities of Australia’s net zero transformation.

The Net Zero Authority will have responsibility for promoting the orderly and positive economic transformation associated with achieving net zero emissions.

The authority will:

  • support workers in emissions-intensive sectors to access training and new employment
  • co-ordinate programs and policies across government to support regions and communities to attract and take advantage of new clean energy industries and set those industries up for success.
  • help investors and companies engage with net zero transformation opportunities. 

Capacity Investment Scheme

The Budget provides funding for the initial auctions of the Capacity Investment Scheme. The Commonwealth is underwriting investment which will bring on new supply of clean, dispatchable power across the country.

Powering the Regions Fund

To continue supporting Australia’s regions in a decarbonising economy, the government has allocated:

  • $600 million to the Safeguard Transformation Stream to assist trade-exposed safeguard facilities
  • $400 million to the Critical Inputs to Clean Energy Industries stream supporting primary steel, cement, lime, aluminium and alumina industries
  • $400 million to the Industrial Transformation Stream to be administered by ARENA, supporting regional industrial facilities, including rail and aviation, and helping support new clean energy industries.

National Climate Risk Assessment 

In recognition that the impacts of climate change are already being experienced by communities across the country, including more very hot days, more intense rain fall, and warmer averages, the Budget will fund the first ever National Climate Risk Assessment to help Australia adapt in a changing world.

Ministers’ media release