Australia’s rich history of innovation includes Google Maps, Wi-Fi, the cochlear implant and the black box flight recorder. More recent Australian innovations include advanced solar cell technology and the vanadium redox flow battery – breakthroughs that are helping power the global clean energy transition. These world-changing technologies were made possible through local innovation and international collaboration.
Known for its economic stability and pro-investment environment, Australia has long been a favoured destination for international investors. In 2025, Australia’s stock of foreign investment was A$5.1 trillion (US$3.3 trillion), equivalent to 179% of Australian Gross Domestic Product (GDP). Of this, A$1.3 trillion (US$0.8 trillion) was foreign direct investment (FDI), equivalent to 46% of Australian GDP. Foreign investment is a fundamental pillar in Australia’s growth and prosperity.
As Australia embarks on its next stage of transformational growth – focused on the transition to net zero while strengthening sovereign capabilities – international investment can once again make a significant contribution to Australia and the Asia-Pacific’s future.
The Australian Government’s Future Made in Australia agenda sets out how Australia plans to maximise the economic and industrial benefits of the move to net zero and secure its place in a changing global economic and strategic landscape.
The agenda commits A$22.7 billion over 10 years to help reduce emissions to net zero by 2050; value-add to resources and strengthen economic security; and convert Australian ideas and research into commercial outcomes.
Central to the Future Made in Australia agenda is attracting and facilitating private sector investment in industries that can make a significant contribution to achieving net zero and where Australia has grounds to build an enduring comparative advantage.
These industries include:
Australia has the natural advantages needed to build resilient low-emissions supply chains, including vast resources of critical minerals for energy transition technologies; abundant wind and solar for renewable hydrogen; ample feedstocks for low carbon liquid fuels; and high-quality iron ore for green metals.
These advantages are complemented by Australia’s strengths in clean energy manufacturing, including world-class research and innovation, a highly skilled workforce, and growing capabilities across energy storage, solar technologies and other renewable energy components.
Manufacturing plays an important role in the Australian economy. It contributes approximately 5.7% of Australia’s Gross Domestic Product (GDP) and 7.7% of exports. The manufacturing sector produces A$137 billion of value-added output and employs nearly 1 million people.
The Future Made in Australia agenda includes targeted funding for transformational projects in priority industries. The A$1.5 billion Future Made in Australia Innovation Fund offers grant funding for pre-commercial innovation and deployment of renewable energy technologies.
Australia also has a suite of specialist direct investment vehicles (SIVs) that align funding with Future Made in Australia priority industries. SIVs collectively manage billions of dollars in public capital and financing capacity. Read more about SIVs.
There are also specific incentives for each priority industry.
The Australian Government has committed A$28 billion to build a critical minerals mining, refining and processing industry, strengthening Australia’s place in global supply chains. The Critical Minerals Strategic Reserve will secure select critical minerals for Australia and its key international partners, drawing on A$1 billion from the expanded A$5 billion Critical Minerals Facility. The Critical Minerals Production Tax Incentive offers a 10% refundable tax offset on eligible onshore processing and refining costs. The program is legislated to start on 1 July 2027.
International companies will find investment and offtake opportunities across extraction, processing, manufacturing and technology development and application. The Australian Critical Minerals Prospectus showcases 78 projects across 60 companies, including 29 midstream projects. Australia’s strategic alliances with the United States, Japan, South Korea, the European Union, the UK, India and Canada support commercial partnerships and research.
Developing the ability to make and use low carbon liquid fuels (LCLF) is essential for Australia’s economic security and the transition to net zero. Government support programs like the A$1.1 billion Cleaner Fuels Program and the A$250 million for Low Carbon Liquid Fuels under the Future Made in Australia Innovation Fund will help finance new projects. The Australian Government has also committed to introducing a demand-side measure to provide certainty around investment into LCLF production. Read more about Australia’s LCLF industry.
The Australian Government is progressing Round 2 of the Hydrogen Headstart program to provide revenue support for large-scale renewable hydrogen projects. The Hydrogen Production Tax Incentive offers A$2 refundable tax offset per kilogram of eligible renewable hydrogen produced. Hydrogen developments may also benefit from the Cleaner Fuels Program, the Future Made in Australia Innovation Fund and the National Reconstruction Fund.
The A$1 billion Green Iron Investment Fund includes a A$500 million National Development Stream to help fund early-stage capital projects. This is on top of the A$750 million set aside in the Future Made in Australia Innovation Fund for green metals. Read more about Australia’s green iron industry.
The Future Made in Australia Innovation Fund includes A$200 million for renewable energy manufacturing. The Net Zero Fund also supports organisations to scale up the manufacturing of low-emissions technologies, including manufacturing components. Read more about Australia’s battery manufacturing industry.
With abundant natural resources, innovative cleantech and a population that is embracing green energy, it stands to reason that Australia is emerging as a world leader in the net zero transition.
S&P Global ranked Australia the world’s most attractive market for renewable investment in 2025, reflecting its strong economic fundamentals and investor confidence.
Australia’s stable, transparent and mature business and investment environment also give investors the confidence and certainty to pursue long-term opportunities. Australia is one of only 9 countries to be rated AAA by all 3 major credit rating agencies.
According to the International Monetary Fund (IMF), Australia’s economy grew by an average of 2.3% a year between 2020 and 2025. Between 2026 and 2030, the IMF forecasts Australia’s economy will grow by 10.3%, outperforming other advanced economies, which are expected to grow at a more modest 8.7%.
Australia’s economic strength is backed by a highly skilled workforce across technology and manufacturing, and world-class education and research. In 2026, 9 Australian universities ranked in the global top 100. The nation also ranks in the top 1% in 15 different fields of research. The Australian Government has committed A$2.2 billion to research commercialisation for economic growth.
Australia also offers access to global supply chains and export opportunities. Markets across Asia are scaling up demand for critical minerals, clean energy, green hydrogen, and low carbon liquid fuels. Investors in these industries can leverage Australia’s established trade ties with Asia to supply economies across the region and build a strategic base for long-term regional investment and growth.
Australia has a strong track record of attracting investment. The Australian Government is now making it easier to develop major, transformational projects and invest in Australia through the Investor Front Door. Launched in September 2025, the Investor Front Door offers selected projects a faster way to navigate regulatory requirements and identify potential government financing opportunities.
Four projects have been chosen to participate in the first Investor Front Door pilot. Under the pilot, the Government will provide project developers with a dedicated engagement manager to help navigate regulatory requirements, make connections with relevant government agencies and industry, and identify suitable government financing opportunities that manage billions of dollars in public funding.
There are also reforms underway to Australia’s foreign investment framework. These include changes to foreign investment law to reduce the regulatory burden for frequent, low-risk investors, and introducing a 30-day target for decisions on low-risk applications.
The Australian Government will continue to work across agencies and with states and territories to speed up approvals, reduce duplication, and improve the investor experience.
Australia is also reforming its research and development (R&D) system. There will be a focus on strengthening links between R&D and commercial outcomes, including in sectors such as critical minerals, artificial intelligence, quantum and clean energy.
The Australian Trade and Investment Commission (Austrade) supports foreign investors to establish and expand operations in Australia. Our experts in Australia and around the world can help you through every stage of your investment journey.
We offer the latest industry insights, connections with key stakeholders and decision-makers, and virtual or physical site visits to Australia. Thousands of foreign businesses have worked with us to tap into the Australian market.
For information on investment opportunities in Australia, contact an Austrade investment specialist.
Find out about new investment opportunities, insights and investor success stories across Australia.