This submission identifies a range of initiatives the forthcoming budget should take to support Australia’s industrial transformation. Ai Group’s proposals cover a very wide spread of policy areas, including industry, workplace, energy, skills and training, regulation, technology, trade and taxation. However, they are united in a focus on aiding Australian transformation to a decarbonised, diversified
and digitalised economy.

Summary of recommendations

Decarbonisation

• Support to level the playing field for energy transition investments in priority industries.
• Accelerate implementation of innovation support for decarbonisation in industry
• Federal package to reform regulatory barriers to energy transition investments.
• Provide resources to assist business to meet obligations created by new regulatory reforms.
• Resourcing new regulatory regimes that support circular economy practices in industry.
• Support development of a clean economy workforce.

Diversification

• Funding support for high-growth potential businesses in industry
• Cyber, innovation and supply chain upgrades for Australia’s defence industry
• Build a migration pipeline for diversification-relevant skills
• Ensure the investment competitiveness of our critical minerals industries
• Diversify Australia’s trade promotion efforts for investment in value chains

Digitalisation

• Drive greater uptake of Industry 4.0 practices
• Promote the responsible use of Artificial Intelligence in Australian industry
• Upgrade the cyber-security capabilities of business
• Ensure digital skills are core to Australia’s skills and training system
• Digitalise Australia’s supply chains through data and free trade agreements
• Promote data stewardship for successful digitalisation