Prime Minister Anthony Albanese has signalled a dramatic shift towards direct government support for Australian industry and innovation, drawing parallels with US President Joe Biden's Inflation Reduction Act. In a speech to the Queensland Press Club, Albanese will outline plans for a green interventionist industry policy, promising to speed up the energy transition and provide certainty for business.
Albanese will argue that Australia needs to be 'more strategic and more sophisticated' to compete globally, saying the country requires 'sharper elbows when it comes to marking out our national interest'. He will emphasise the link between economic security and national security, noting that attracting investment has 'never been a polite and gentle process'.
The prime minister will foreshadow new legislation, the 'Future Made in Australia Act', which will serve as a framework for the changed approach. Details are expected in next month's federal budget. The act will coordinate new and existing initiatives to boost investment, create jobs, and seize opportunities in renewable energy and sustainable projects.
Albanese will cite the US Inflation Reduction Act and Chips Act as key reasons why Australia can no longer maintain a level-playing-field approach. He will also reference similar interventionist measures in Europe, Japan, Korea, and Canada. However, he insists this is not 'old-fashioned protectionism' but 'the new competition'.
The prime minister will stress that Australia must continue to champion global markets and free trade while recognising the need for economic interventions based on national interest. He will conclude that Australia cannot afford to be 'running on the fumes of past economic reforms' and that government must be a driver of investment and productivity.
