$6bn pledged for Australian manufacturing

The federal government has allocated $6.15 billion to support farmers through manufacturing supply chains, clean energy in high-emission manufacturing, and timber processing industries.

Through its National Reconstruction Fund, the federal government has committed $6.15 billion to support select supply chains, manufacturing in hard-to-abate industries, and the timber industry to support housing construction.

The over $6 billion injection consists of the zero-interest loan Economic Resilience Program ($1 billion), the Net Zero Fund ($5 billion), and the Forestry Growth Fund ($150 million).

In partnership with CommBank, Westpac, NAB, ANZ, Bank of Queensland, Bendigo Bank, and Judo Bank, the government offers its zero-interest Economic Resilience Program for supply chains that produce and transport fuels, plastics, fertilisers, and agricultural protection chemicals for Australian farmers and manufacturers.

“The Economic Resilience Program is a pragmatic and timely response to the pressures businesses are experiencing, particularly in fuel‑dependent and plastics‑intensive sectors,” said Innes Willox (pictured), chief executive at Australian Industry Group.

Earmarked for hard-to-abate industries such as steel, cement, chemicals, aviation, shipping, and heavy transport, the $5 billion Net Zero Fund will support energy-efficiency upgrades for the development of domestic clean-energy supply chains and the manufacture of low-emissions technology such as wind, solar, energy storage solutions, and the production of low-carbon liquid fuels.

Federal Minister for Finance, Women, Government Services and the Public Service, Katy Gallagher, said the Net Zero Fund will support secure local jobs, strengthen sovereign capability, and diversify Australia’s economy when most needed.

In addition, $150 million has been allocated to mills and processing facilities through the Forestry Growth Fund to support processing for housing construction.

Federal Minister for Agriculture, Fisheries and Forestry, Julie Collins, said that the Forestry Growth Fund will help secure more jobs in regional Australia, increase pay, and output.

“In an increasingly volatile global environment, strong domestic supply chains matter more than ever, and this funding is about backing the industries Australia relies on, from farming and manufacturing to housing and heavy industry,” said Tim Ayres, Minister for Industry and Innovation and Minister for Science.