Australia’s mining industry has welcomed the 2026–27 Federal Budget, with the sector pointing to major investments in critical minerals, fuel security and streamlined project approvals as measures that will support future growth across the sector while continuing to deliver benefits for Australians.
The budget left existing mining tax and fuel tax credits were left unchanged, providing assurance for mining companies during a period of global economic uncertainty and rising operational costs.
“This approach shows the Government understands mining’s immense contributions to Australia’s economy, jobs and regional communities,” Minerals Council of Australia (MCA) chief executive officer Tania Constable said.
The Federal Government committed $1.2 billion toward its Critical Minerals Strategic Reserve, including $185 million for selective stockpiling and $1 billion in project support, reinforcing Australia’s push to strengthen domestic supply chains and severing capability.
The budget also included a $14.8 billion fuel resilience package aimed at strengthening Australia’s supply chains and protecting industries reliant on diesel, including mining and heavy industry. Measures include a new government-controlled Australian Fuel Security Reserve, which is expected to hold around one billion litres of diesel and aviation fuel.
“In addition to not imposing new taxes, the government has also supported mining through the Australian Fuel Security and Resilience package which will improve fuel security – especially vital diesel supplies – for minerals extraction and processing,” Constable said.
Industry groups said the investment will help protect Australia’s energy security while ensuring mining operations across regional and remote areas continue running efficiently during future supply disruptions.
“Backing mining supports national resilience, because a stronger mining sector can make an even bigger contribution to help fund Medicare, education, defence and other vital services and infrastructure,” Constable said.
The budget committed $105.9 million toward faster environmental approvals under the Environmental Protection and Biodiversity Conservation (EPBC) Act through the use of artificial intelligence (AI) and digital systems designed to reduce approval bottlenecks and improve assessment efficiency.
“Delays kill projects. Speeding up and simplifying approvals is the most important plank of the federal government’s productivity agenda,” Chamber of Minerals and Energy (CME) WA chief executive officer Aaron Morey said.
Morey said the measures reinforce Australia’s position as a reliable global supplier of critical resources during a period of growing international demand.
“The world is rewarding reliable trading partners and Australia must lean into that advantage,” he said.
Morey highlighted the fact the budget underlines mining’s position as a key driver of Australia’s future economic growth.
“Turbocharging investment into the resources sector is Australia’s best chance to get the budget back into the black,” he said.
