Prime Minister Albanese has been forced to defend the merits of the Act, which is modelled on Biden’s Inflation Reduction Act.
Amidst heavy opposition to the Future Made in Australia Bill, Prime Minister Anthony Albanese has spent Question Time defending the proposed bill.
The prime minister called it a “long-term economic security plan” for Australia, saying it would safeguard the country against future global shocks like pandemics, cyberattacks, or an energy crisis.
The opposition says the bill lacks detail and does not provide relief for Australian manufacturers, families, small businesses, and farmers.
Opposition Liberal Party MP Michelle Landry said it would not reduce red tape, reform taxes, or tackle inflation.
Keith Wolahan of the Liberal Party joined the critique, saying businesses needed less government regulation.
“We would request the government to bring humility to this debate. I am not an engineer. I have not built things in Australia, but there are people out there who have built and go listen to them. And what they will say is all they need is some breathing space and they are ready to compete globally.”
When announced in April, Albanese said Australia’s version was also following in the stead of the CHIPS Act in the United States, the European Union’s European Economic Security Strategy, Japan’s Economic Security Promotion Act, and South Korea’s National Security Strategy.
All involve government investment, tax breaks, and incentives targeting industries deemed critical.
Will Not Replace Private Investment, PM Says
In Parliament on Aug. 14, Albanese said the government would not replace private investment.
“This is about government being a catalyst for investment, unlocking the private capital to build new projects, create new jobs, and drive growth and prosperity in doing so in a way that better aligns our national security with our economic security, just as the U.S., UK, Republic of Korea, Japan, Canada, and so many nations around the world are doing,” he said.
“The commitment that 92 percent of the world economy has made to net zero, including 97 percent of Australia’s trading partners—in order to reach their goal, these countries will need more clean energy, more solar power, more wind power, more batteries and storage, and more of the resources, critical minerals, and rare earths that all this technology depends on.”
However, Wolahan also said peak industry bodies like the Business Council of Australia and the Australian Chamber of Commerce and Industry have raised serious concerns about the bill’s restrictive design and rigid eligibility criteria, warning it could limit projects locally.
A Boost to Local Manufacturing: Albanese
The prime minister also had to defend criticisms of collapsing manufacturing business in recent months, saying the Future Made in Australia could spur growth.
“We can make things here. We can add value here. We can build an economy where manufacturing is every bit as strong as mining, where Australian researchers and innovators can commercialize their ideas here and turn discovery into industry.”
He further said the bill would be a boon for regional Australia.
“Our vision for a future made in Australia is about every part of Australia, securing Gladstone’s future as a global hub for clean energy and green industry, expanding medical manufacturing in Victoria, revitalising the Upper Spencer Gulf in South Australia as a producer of green iron, steel, and cement, and re-energising the Hunter Valley with new jobs in technology and manufacturing.”