Linkedin
Facebook
Email
more
Federal Budget 2023-24
INFORMATION FOR INNOVATION, CLEAN ENERGY AND TECHNOLOGY
Innovation does not appear to be at the forefront of the Federal Budget. There is however a focus on clean energy to support the transition towards net zero and critical technologies.
Federal Budget 2023-24
Download your free copy of RSM's Federal Budget 2023-24 report here.
$116m over five years from 2022-23 to support the development of critical technologies in Australia to drive economic growth, boost technology industries and support the creation of new jobs.
$80.5m will be provided over four years from 2023-24 to support the Australian critical minerals sector to build diverse and competitive supply chains, attract international investment and transition to net zero.
$1.3b has been allocated over five years from 2022-23 from $1.9b provided in the 2022-23 October Budget to support the decarbonisation of existing industries, develop new clean energy industries and support sovereign manufacturing capacity. essential to the energy transition
RSM contributors
Growing Australia’s Critical Technologies Industries
Whilst the Government recognise seven critical technology areas, Quantum and Artificial Intelligence (AI) have been acknowledged in this area of the Budget. This includes:
1. $101.2m over five years from 2022-23 to support businesses to integrate quantum and AI technologies into their operations, through:
- Extending the National AI Centre and its role in supporting responsible AI usage through developing governance and industry capabilities
- Establishing an Australian Centre for Quantum Growth to support ecosystem growth and commercialisation in Australia’s quantum industry
- Supporting small and medium enterprises’ adoption of AI technologies to improve business processes and increase trade competitiveness
2. $14.8m over four years from 2023-24 to establish the Powering Australia Industry Growth Centre to develop advanced technology and skills as part of the Government’s Australian Made Battery Plan
Critical Minerals
$80.5m will be provided over four years from 2023-24 to support the Australian critical minerals sector to build diverse and competitive supply chains, attract international investment and transition to net zero. This includes $57.1m over four years from 2023-24 to undertake international engagement to promote Australian critical minerals projects and build diverse and resilient supply chains with key international partners.
R&D Tax Incentive
The R&D Tax Incentive program remains stable in this Budget with no proposed changes.
Hydrogen Headset Program
The Government has committed to making Australia a “renewable energy superpower.”
A $2b Hydrogen Headstart program is being launched which will accelerate the development of Australia’s Hydrogen industry. The program will provide support for investment in renewable hydrogen production through competitive production contracts, including funding for the Australian Renewable Energy Agency and the Department of Climate Change, Energy, the Environment and Water to support the development and operation of the program.
Powering the Regions Fund
$1.3b has been allocated over five years from 2022-23 from $1.9b provided in the 2022-23 October Budget to support the decarbonisation of existing industries, develop new clean energy industries and support sovereign manufacturing capacity essential to the energy transition.
Patent Box
The Government will not proceed with three separate patent box measures announced by the former Government in the 2021-22 and 2022-23 March Budget. It is unclear exactly which measures will be abandoned. No doubt there will be many disappointed stakeholders given the draft legislation and ongoing consultation over recent years
KEY TAKEAWAY
$116m over five years from 2022-23 to support the development of critical technologies in Australia to drive economic growth, boost technology industries and support the creation of new jobs
$80.5m will be provided over four years from 2023-24 to support the Australian critical minerals sector to build diverse and competitive supply chains, attract international investment and transition to net zero
$1.3b has been allocated over five years from 2022-23 from $1.9b provided in the 2022-23 October Budget to support the decarbonisation of existing industries, develop new clean energy industries and support sovereign manufacturing capacity essential to the energy transition
The Government will provide $2b to accelerate development of Australia’s hydrogen industry, catalyse clean energy industries and help Australia connect to new global hydrogen supply chains
No changes to the R&D Tax Incentive
Three Patent Box measures abandoned
LOSERS
Patent Box Regime hopefuls.
WINNERS
Hydrogen, Critical Technologies and Critical Minerals.
Government Grants
Redirection of Entrepreneurs Program funding to the new Industry Growth Program, targeted to Australian SMEs and startups seeking to commercialise their technology.
As anticipated, grant programs emphasise and incentivise the move to low emissions operations, especially for heavy industry.
Infrastructure programs target critical needs in both urban and regional contexts.
RSM contributors
Grant programs announced for Australian businesses align heavily with the clean energy and sectoral priorities of the Federal Government. In a budget designed to conserve spending, key programs are funded by reallocation from existing programs.
- Infrastructure funding is present for both urban and regional areas.
- The $211.7m Thriving Suburbs Program provide grants for community infrastructure in urban and suburban communities.
- The well-established Remote Airstrip Upgrade Program receives $13.5m for an additional funding round. The program supports improved safety and access at remote airstrips and facilitate air connectivity and the delivery of goods and services to remote communities.
- The Infrastructure Investment Program provides $50m over four years for infrastructure projects in Central Australia.
- A new $43.6m National Road Safety Action Grants Program supports community education and awareness, vulnerable road users, First Nations road safety, technology, innovation, and research.
- The National Water Grid Fund receives an additional $150m over four years to improve water security for regional and remote First Nations communities.
- Some existing programs that have become staple funding sources for growing businesses are experiencing change.
- The Entrepreneurs Program as we know it is being replaced by the Industry Growth Program, targeted to Australian SMEs and startups seeking to commercialise their ideas. Support will be targeted towards businesses operating in the priority areas of the National Reconstruction Fund.
- Funding for the Export Market Development Grants, which have been progressively reduced in value over recent years, will be cut. Existing applicants will be eligible to receive their grant funding over the next two years
WINNERS
Businesses seeking to reduce emissions or incorporate digital technologies such as quantum computing and AI.
LOSERS
Prospective Export Market Development Grant applicants and those of other reallocated funds.
MORE FEDERAL BUDGET COVERAGE:
Download our Federal Budget 2023-24 Analysis
Download your free copy of RSM's Federal Budget 2023-24 analysis here.