On 25 March 2025, Treasurer Jim Chalmers delivered the Federal Budget for 2025-26 (Budget) announcing significant measures in relation to trade, border security, infrastructure, transport and manufacturing.
Below is a summary of the significant measures announced.
Funding to fight the illicit tobacco trade
The Government has announced it will provide $156.7 million over two years from 2025-26 to strengthen compliance and enforcement action in relation to the trade of illicit tobacco and nicotine products. This funding includes:
- $49.4 million over two years from 2025-26 to increase the capacity of the Australian Federal Police‑led Criminal Assets Confiscation Taskforce to investigate and prosecute serious and organised crime groups dealing in illicit tobacco and nicotine products.
- $40.0 million over two years from 2025-26 to support states and territories to establish local level capability to respond to their own unique compliance and enforcement challenges and strengthen regulatory authorities’ cross‑jurisdictional tactical partnerships for enforcement capacity.
- $31.6 million over two years from 2025-26 to strengthen monitoring, compliance and enforcement activities under the Public Health (Tobacco and Other Products) Act 2023 and the Therapeutic Goods Act 1989.
- $19.9 million over two years from 2025-26 to increase the capacity of the Office of the Illicit Tobacco and E‑cigarettes Commissioner to coordinate efforts across all levels of government to combat the illicit tobacco trade.
- $7.0 million over two years from 2025-26 to support the Australian Border Force to combat illicit tobacco networks by trialling rapid non‑intrusive tools to detect illicit tobacco in international cargo and mail.
Tariffs on goods from Russia and Belarus
The Government will extend by a further two years, until 24 October 2027, a measure imposing additional tariffs on goods that are the produce or manufacture of Russia or Belarus.
The measure continues to deny Russia and Belarus access to the most favoured nation status through the application of an additional 35 per cent tariff on goods that are the produce or manufacture of Russia or Belarus and had not left for direct shipment to Australia from a place of manufacture or warehouse before 25 April 2022.
Excise equivalent customs duty rates
The Budget also includes measures to pause indexation on draught beer excise and excise equivalent customs duty rates for a two‑year period, from August 2025.
Under this measure biannual indexation of draught beer excise and excise equivalent customs duty rates due to occur in August 2025, February 2026, August 2026, and February 2027 will not occur. Biannual indexation will then recommence from August 2027.
Trade with India
The Government will provide $20.0 million over four years from 2025-26 to support increased economic engagement with India. This funding includes:
- $16.0 million to establish an Australia‑India Trade and Investment Accelerator Fund to support cooperative projects targeted at reducing technical and regulatory barriers to trade
- $4.0 million to extend the Maitri Grants Program to support exchange and collaboration between Australian and Indian cultural, education, research and business communities.
Border security
The Government will provide $84.5 million over four years from 2025-26 to support Australia’s border security. Funding includes:
- $74.9 million in 2025-26 to address border and biosecurity threats from illegal fishing activities in Australia’s northern waters, including increasing the presence of the Australian Border Force and Australian Fisheries Management Authority in the region, and supporting prosecutions by the Office of the Director of Public Prosecutions
- $9.6 million over four years from 2025-26 to undertake an approach to market to renew Australia’s primary sea cargo screening technology to detect and prevent the importation of illicit goods and sustain existing screening technology.
The Budget announcements have also confirmed that the Federal Government will delay the implementation of a single issuing body for aviation and maritime security identification cards by one year until 1 July 2026 to adjust the implementation approach in consultation with industry to minimise service delivery risk.
Transport and logistics
The Government will provide $17.1 billion over ten years from 2024-25 for road and rail infrastructure priorities to support productivity and jobs. Some of the projects which have received funding are as follows:
- $15.6 billion over ten years from 2024-25 for new Infrastructure Investment Program projects across Australia, including:
- $7.2 billion for safety upgrades on the Bruce Highway in Queensland.
- $2.0 billion to upgrade Sunshine Station and $1.0 billion for the Road Blitz in Victoria.
- $2.8 billion for projects in New South Wales, including $115.0 million to upgrade Terrigal Drive.
The Government will provide $49.6 million over five years from 2024-25 to support transport priorities, including the following:
- $32.7 million in 2025-26 to support ongoing safety and regulatory services provided by the Australian Maritime Safety Authority, the Australian Transport Safety Bureau and the Civil Aviation Safety Authority
- $16.9 million over five years from 2024-25 to establish a maritime internship program to support seafarer certification and expand activities under the Transport and Logistics Jobs and Skills Council to support the Strategic Fleet and skills development in the maritime sector.
Agriculture
The Government will provide $45.2 million over three years from 2025-26 to support priorities in the Agriculture, Fisheries and Forestry portfolio. Funding includes:
- $23.8 million over three years from 2025-26 to sponsor agricultural trade events.
- $11.0 million in 2025-26 to continue efforts to reduce the economic and environmental burden of established feral animals, pests and weeds.
- $6.8 million in 2025-26 for the Department of Agriculture, Fisheries and Forestry to sustain non‑regulatory agricultural export and trade functions, including international engagement in multilateral forums and technical market access services.
- $3.5 million over two years from 2025-26 to develop a National Food Security Strategy.
Australian metals manufacturing
The Government will provide $3.2 billion over 19 years from 2024-25 to invest in the future of Australia’s metals industry. These measures include:
- $2.0 billion over 19 years from 2024-25 for Green Aluminium Production Credits to provide production-based grants to support Australian aluminium smelters switching to renewable electricity before 2036. This would be provided to eligible Australian Aluminium production facilities over a period of 10 years.
- $1.0 billion over seven years from 2024-25 for the Green Iron Investment Fund to fund green iron projects through capital grants to support producers to establish or transition into low emissions facilities in Australia, including up to $500 million earmarked to transform the Whyalla Steelworks.
- $219.3 million over two years from 2024-25 to provide immediate on the ground support and to stabilise the Whyalla Steelworks during administration.
These measures are intended to build on the Future Made in Australia measures provided for in last year’s budget.
Contact us
If you would like to discuss the announced Budget measures in greater detail, please contact our Customs & Trade team.