Mar 25, 2025 by Mark Dingley
With the 2025 federal election looming, the future of Australian manufacturing hangs in the balance.
Billions of dollars are being pledged, policies are being debated, and industry leaders are watching closely.
Will Australia's manufacturing sector see a boom in investment and innovation, or will businesses be left to fend for themselves in a competitive global market?
Here's what we know so far.
As the incumbent government, Labor has the advantage of shaping policy in real time.
Their Future Made in Australia agenda is central to their manufacturing strategy, with billions already committed to key industries like defence, mining, aluminium, and AI.
Prime Minister Anthony Albanese has positioned domestic manufacturing as a national priority: “We cannot just be at the end of supply chains. We need to make more things here.”
He also said, “We need to learn the lessons of covid-19, which is we cannot just be at the end of supply chains, we cannot just dig things up, export them, wait for value to be added, wait for jobs to be created and then import the manufactured goods here.”
To back this up, Labor has announced:
Labor is betting big on strategic investments to secure local manufacturing jobs, drive innovation and boost Australia’s economic resilience.
So far, the Coalition has been quiet on its manufacturing promises.
Federal Opposition Leader Peter Dutton voted against the Future Made in Australia Bill in January, calling it “billions for billionaires” in his Federal Budget reply speech.
Currently, the Coalition’s flagship policy seems to be nuclear power, with Dutton claiming “power prices will be cheaper under us in the near term” and that his policy would be expected to lead to “a 44% reduction, or of that order, being passed through in energy bill relief”.
In terms of the type of policy we might be able to expect, the previous Coalition government in Australia demonstrated support for the food & beverage manufacturing industry through several key initiatives:
One of the leading peak bodies in the industry, the Australian Academy of Technological Sciences and Engineering (ATSE) has announced a list of key priorities for political parties to support innovation and economic growth.
Their Boosting Australia's Innovation report – developed with input from business, government, research and entrepreneurial leaders – highlights urgent challenges for Australian manufacturers.
Key recommendations include:
ATSE CEO Kylie Walker emphasised Australia's potential: “Australia has what it takes to lead the world – across areas like battery technology, sustainable building materials, clean mining methods and responsible Artificial Intelligence and more.”
She added, “A fully maximised and thriving innovation ecosystem will create new industries, solve health problems, invent exportable technologies, safeguard our environment and support our workforces of the future.”
AUSVEG's Federal Election Priorities document, released in November, outlines 21 specific commitments it seeks from all parties contesting the federal election.
Top priorities include:
AUSVEG CEO Michael Coot said, “The next Federal election will be pivotal for our sector as Australian vegetable growers continue straining under the weight of a cost-of-production crisis, compliance burden, poor farmgate returns, a lack of funds to invest and innovate, workforce shortages and declining consumer engagement…
“Without the necessary commitments, we risk having more growers leave the sector, reductions in fresh vegetable supply, consumer price increases, and threats to our food security.”
He urged all parties to act now to secure the future of Australia's vegetable industry.
The NFF has also set out its priorities for an incoming federal government, arguing that strong agricultural policy is key to addressing Australia's productivity slump and easing cost-of-living pressures.
The NFF’s key concerns include:
According to the NFF, “Getting these policies right will not only boost agriculture but directly help with the cost-of-living crisis all Australians are facing.”
As the election campaign heats up, Australian manufacturers, food producers, and industry leaders will be watching closely. The decisions made in this election could shape their future for decades to come.