Pro-mining policies which make the most of mining's existing strengths can bring the budget back into balance and reduce the nation's debt while boosting economic growth and buttressing living standards.
The Minerals Council of Australia's pre-Budget submission - released during Minerals Week 2026 in Canberra - outlines practical reforms and programs which the Federal Government can support in the budget to support delivery of its national security and economic resilience priorities.
Mining is one of Australia's enduring economic strengths. The mining industry is not just a driver of productivity; it is a platform for delivering it.
If Australia's economy is to muscle up during an era of sudden shocks, the government and the mining industry must work in close partnership.
Without a significant increase in investment by Australia's most capital-intensive and productive industry, the government will struggle to address the federal budget's structural deficit and growing debt, and the economy will have difficulty navigating growing and uncertain global headwinds.
Compared to many other mining countries, Australian mining projects face high effective tax rates, slow and complex regulatory approvals, relatively high labour and construction costs, and rising energy prices.
Australia's vulnerability to competition for mining investment from other traditional and emerging resource-rich economies with lower input and regulatory costs and faster approval processes is only growing.
Businesses need policy settings that do not impose high and unnecessary costs which discourage investment and reduce productivity.
This includes certainty that there will be no new taxes and retaining the fuel tax credit in its current form while ensuring business tax settings such as the fringe benefits tax, accelerated depreciation rules and targeted investment allowances continue to encourage and unlock further investment.
There is also an opportunity to supercharge investment in new mining projects through the development of a nationally coordinated northern infrastructure corridor.
The MCA's pre-Budget submission includes recommendations to:
- Commit to no new taxes including retaining the fuel tax credit scheme in its current form and ensure business tax is fit-for-purpose
- Introduce permanent accelerated depreciation measures to all businesses and targeted investment allowances to bring forward the timing of new investment without materially affecting the budget
- Coordinate inter-governmental planning, approvals and investment in multi-purpose projects across northern Australia
- Establish a nationally coordinated northern infrastructure corridor, aligning Defence funding with private investment to deliver the Alice Springs-Mt Isa rail link, flood resilient road and rail corridors and upgraded port infrastructure at scale.
- Leverage AI in assessments to deliver faster, more reliable outcomes while reducing reliance on manual processes
- Reinstate the JMEI as a permanent annual scheme and remove the annual cap on credit allocations as part of the JMEI program.
- Accredit state and territory regulation for assessment and approvals under the EPBC Act and establish effective cooperation between governments
- Expand the scope and increase the funding of the Safeguard Transformation Stream (STS) and Industrial Transformation Stream (ITS) to ensure comprehensive support for all at-risk facilities to reduce the risk of carbon leakage during the transition.
- Reintroduce the Carbon Capture Use and Storage Development Fund (CCUSDF) and improve community awareness of the important role of all technologies in least-cost
- Redirect government funding from the Environmental Defenders Office (EDO) to Aboriginal and Torres Strait Islander legal services
- Request the Productivity Commission to undertake a public inquiry into activities that will unlock investment opportunities and increase economic empowerment in Traditional Custodian communities.
More than ever, Australia needs to attract mining investment in its mineral and energy commodities old and new while expanding the supply side of the economy to achieve stronger growth and future prosperity.
