The 2024 Federal Budget presents a renewed vision for the government’s role in creating a better future for Australians and strengthening our economy.
The Centre for Policy Development (CPD) supports budget measures across industry policy, energy, and early childhood – key areas where proactive government involvement is essential to address the challenges facing Australians.
While managing inflation and spending remains crucial, CPD emphasises the importance of strategic, long-term investment to ensure a promising future for Australian children, families, women, and communities.
CPD welcomes the strong emphasis on a reimagined industrial policy in the budget. The ‘Future Made in Australia’ plans highlight the government’s recognition that relying on capital markets alone to chart the course toward a resilient, sustainable future economy will not be enough.
CPD research has underscored the need for government intervention to stimulate early-stage investment in emerging technologies and green industries. This approach will position Australia competitively in the global economy by unlocking investment and accelerating these industries, while ensuring progress toward climate goals.
New industries to replace carbon-intensive incumbents – such as green hydrogen, and alumina – were key areas for investment recommended by CPD research. These fields represent strategic comparative advantages, where Australia can put our abundant renewable energy potential to use generating local jobs and stimulating sustainable economic growth.
Other industries, such as solar panel manufacturing, require more care. While solar panels are critical for Australia’s energy transition, support should only extend as necessary to navigate global supply chain constraints.
Success will require a clear direction, governance, and a diverse policy toolkit beyond loans at near-commercial rates. To this end, we are glad to see additional resourcing and expansion of the Net Zero Economy Authority, and broader support for workers and communities affected by the net zero transition. These measures will be pivotal in ensuring that a Future Made in Australia benefits all Australians.
We encourage the government to consider further measures to bolster research and development in green industries – a key area where Australia can develop a competitive advantage.
Continued efforts to deepen economic and climate change collaboration with partners in the region, particularly Indonesia, has been a major focus of CPD’s work. Investment in regional decarbonisation, particularly the $2 billion Southeast Asia Investment Financing Facility is welcome, and we are encouraged by the $500 million package to support economic engagement in Southeast Asia.
We are pleased to see allowances for early childhood educators to receive a much-needed pay increase. This is a critical step in addressing workforce shortages and strengthening the foundation for universally accessible early childhood education and care (ECEC) – something CPD has long advocated for. We also welcome the inclusion of superannuation on paid parental leave, a key step to ensuring parents can balance work and care responsibilities.
We commend the government on its ambition and focus on early childhood, and encourage further measures such as the removal of the activity test, exploring alternative funding models and strengthening price regulation to improve affordability and access for families. These measures will ensure Australia’s early childhood system is set up to better support children, parents and families to thrive.
Additional funding for the government’s ‘Measuring What Matters’ framework will improve decision-making and help prioritise policies that will promote Australians’ wellbeing for generations to come.
Centre for Policy Development CEO Andrew Hudson commended the budget, and emphasised that investment should be accompanied by ambitious policy to create a brighter future for Australians.
“To fulfil the promises of emerging industries, economic growth, and support for future generations, investment must be paired with strong and coordinated policies that put the needs of Australians at the forefront.
“I’m pleased to see the government recognise that a completely hands-off approach, whether through industry policy or early childhood education, just won’t cut it anymore.
“The steps we take now will determine what Australia will look like in decades to come.
“Through measures such as a Future Made in Australia, if we get it right, we can set Australia up for success long into the future.
“Getting it right isn’t about propping up firms with “forever subsidies”, but it will mean government has a stake in catalysing new industries, that communities are supported to work and benefit from them, and that everyone has access to the opportunities these new industries will present.
