Targeted Relief, Big Industry Bets, and Missed Opportunities for Change-Makers

The Federal Budget for 2025–26 is a study in restraint, designed to ease inflation without fuelling it, while keeping the government’s clean energy ambitions on track. And while there’s relief in cost-of-living measures and continued investments in big industry, there are also familiar gaps — particularly for early-stage entrepreneurs, community organisations, and grassroots innovation.

Here’s what you need to know.

Budget in Brief

• Tax cuts starting July 2026 of $268 for Australians earning above $45,000
• Energy bill relief: $300 per household, $325 per eligible small business
• No broad tax reform
• Continued investment in Future Made in Australia clean economy agenda
• Focused support for housing, health, and disaster recovery
• Ban on non-compete clauses for workers earning under $175K
• The slashing of the $20,000 instant asset write-off at the end of this f/y.
  

Clean Energy & Industry: Big Bets Continue

While the Future Made in Australia Act was introduced last year, this budget cements it as a core strategic investment. The 2025–26 budget adds $22.7 billion over 10 years to turbocharge clean energy and sovereign manufacturing capability. Key highlights include:

• $1 billion Green Iron Fund to support green steel and iron industries
  
• $2 billion Green Aluminium Credit to grow low-carbon metals sector
  
• $13.7 billion in production tax incentives for renewable hydrogen and critical minerals
  
• New programs to attract clean tech capital and build local supply chains
  

But while the dollars are big, the focus is squarely on large-scale industrial transition. For community organisations, smaller innovators, or climate-focused social enterprises — the pathway to benefit remains indirect.

Mental Health: A Digital Focus, But Gaps Remain

Mental health receives investment — but mostly via digital and pharmaceutical channels:

• $46 million to expand digital mental health services
  
• New PBS listings including esketamine for treatment-resistant depression
  
• Some youth and veteran program support
  

Still, advocates say this is far from enough. In-person care, community mental health support, and early intervention programs — especially in rural Australia — remain underfunded and under-resourced.

Regional & Rural Australia: Disaster Support, But Little Vision

This year’s budget includes $13.6 billion for disaster recovery, continuing support from recent events like Cyclone Alfred. This funding will assist local governments, community infrastructure, and affected small businesses.

Other investments include:

• An extra $625 million for the Future Drought Fund
  
• $1 billion for the Roads to Recovery program
  
• Funding for regional broadband upgrades
  

But while practical, this budget lacks a bold vision for regional development. There’s little to excite rural changemakers or address long-term place-based disadvantage.

Small Business & Innovation: The Basics, But Not Much More

There’s modest relief for small business:

• $325 energy rebate for eligible SMEs
  
• $56.7 million in Energy Efficiency Grants – Round 2
  
• $60 million in cyber and digital adoption support
  

There’s also an important structural shift: the ban on non-compete clauses, which will make it easier for workers to move, innovate, and launch ventures — a win for the startup ecosystem.

But direct support for entrepreneurs? Still missing.

There are no new startup grants, innovation acceleration programs, or sector-neutral funding for early-stage ventures. 

Women & Inclusion: Selective Progress

There’s continued investment in women’s health, safety, and services:

• $925 million for domestic and family violence prevention
  
• New funds for legal support, housing, and victim recovery services
  
• $3.4 million for a First Nations Women’s Entrepreneurship program (supporting up to 150 women)
  

But outside of this, women-led startups and businesses are nowhere to be seen. There’s no mainstream funding, no equity support, and no dedicated entrepreneurship strategy for women — a recurring omission.

Tech & AI: Responsible, Not Revolutionary

The government is clearly cautious on AI — committing to:

• $39.9 million for responsible AI adoption
  
• Continued investment in the National AI Centre
  
• Support for ethical frameworks and regulatory development
  

This is a positive signal, but not a growth play. For startups or SMEs developing AI products or innovation, there is no major new funding or commercialisation support.

Education: Building for the Future, But No Bold Reform

There are clear investments in schools, infrastructure, and teaching quality:

• $3.1 billion to fund 50 new schools and upgrades across the country
  
• Expansion of school-based mental health programs
  
• Continued support for teacher workforce development and attraction

But this budget is light on systemic reform. There’s no major overhaul of school funding models, equity-based programs, or renewed investment in lifelong learning, TAFE, or vocational education. For organisations delivering educational impact outside the classroom — or working with at-risk students — funding remains patchy at best.

Disability & Accessibility: Modest Moves, Major Gaps

There’s ongoing commitment to the National Disability Insurance Scheme (NDIS), including:

• $1.3 billion in administrative and oversight improvements
  
• Funding for quality and safeguards reforms
  
• Continued support for disability employment services

But advocates have flagged the absence of new grant programs or direct investment in inclusive communities, disability leadership, or innovation in accessibility. Disability-led orgs and social enterprises remain on the outside of the funding spotlight.

Who’s Funded vs. Who’s Forgotten

Funded	Overlooked
Big industry in clean energy and resources	Female founders (outside of First Nations)
SMEs focused on energy and cyber resilience	Nonprofits and community innovation
Disaster-affected regional communities	Social enterprises and creative startups
First Nations entrepreneurs and infrastructure	Mental health providers delivering in-person care
Responsible AI ethics and governance	Tech startups and scale-ups

So Where to Now?

This budget confirms a trend that’s been building for years: grants are now laser-focused, tied to political priorities, and increasingly hard to find unless you know exactly where to look.

Which means now is the time to get strategic.

If you’re seeking funding, consider diversifying beyond federal sources:

• State and territory grants (many open rounds for innovation, community programs, and business development – especially in Victoria and Queensland)
  
• Corporate funders and community foundations
  
• Philanthropic trusts focused on inclusion, health, environment, and the arts
  

Final Thoughts: A Budget of Big Bets and Narrow Lanes

This year’s Federal Budget shows a government determined to invest in the big ideas — industry transformation, energy sovereignty, disaster resilience — and those commitments are real and far-reaching. If you’re operating in green tech, clean energy, regional infrastructure, or frontline community services, there is potential funding on the table.

But if you’re working in community development, early-stage entrepreneurship, regional change-making, or social innovation — you’re still being asked to do more with less.

There’s no wide-scale investment in innovation ecosystems, and no strong signal of support for the community sector beyond crisis response. Female founders, early-stage entrepreneurs, arts organisations, and social enterprises continue to face a funding environment that feels more like a maze than a marketplace.

The opportunities exist — but they’re fragmented, hidden, and often hard to access unless you already know where to look.

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A Note From Us

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No matter what this budget delivered, you still deserve access to opportunities that help you grow and create impact. And we’ll be here to help you find them.

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