While the Albanese Government prepared this year’s federal budget, the latest fuel crisis hit Australians hard. This is not new: the government’s first budget was handed down in the midst of energy chaos, brought on by Russia’s invasion of Ukraine. The lessons from both crises are clear: relying on fossil fuels leaves us exposed to shortages and price hikes, while clean energy puts us back in control.
Australians know this. Recent national polling shows that Australians wanted this budget to help them shift to efficient electric homes and vehicles, powered by renewables and batteries. Amongst broad calls for gas export tax reform, it is clear that Australians want the Albanese Government to stand up to fossil fuel corporations to take back control of our energy and resources.
The 2026-27 federal budget was an opportunity to accelerate that transition. We assessed it against four immediate opportunities to take back control of our energy security, and the critical need to protect Australians from climate harm.
A budget to shield Australians from global fossil fuel shocks and climate harm
| What’s needed | Budget momentum |
| Reduce fuel dependence with electric vehicles, shared and active transport. | Some new commitments, but falls well short of the moment. |
| Cut household bills with electrified homes, solar and batteries. | Limited commitments to deliver existing reforms only. |
| Power heavy industry with Australian renewables, not imported diesel. | No meaningful new commitments, significant missed opportunities. |
| Make gas corporations pay their fair share, while phasing out gas. | Step in the wrong direction, with increased support for polluting and expensive gas. |
| Build more renewable power and grow clean industries. | Limited commitments. |
| Help Australians adapt to the impacts of climate change. | Funding remains grossly insufficient. |
Shielding Australians from global fossil fuel chaos
In the face of a global energy crisis, the Australian Government has introduced short-term measures to manage fuel supplies and price spikes, including releasing emergency stockpiles, a $2.9 billion package to halve the fuel excise and cut charges for heavy vehicles, and a $10.7 billion package to increase fuel storage and secure more fuel.
While immediate relief for the current crisis is needed, it doesn’t fix the core problem: as long as Australia relies on fossil fuels, households will stay exposed to supply shortages and soaring prices.
The switch to renewable power is our best chance to ensure energy security, to shelter households and businesses from volatile global fossil fuel markets, and cut climate pollution permanently. Fossil fuels leave our energy security at risk, while renewables protect us.
This is not the first time global events have driven up energy costs, and it won’t be the last. So has the Albanese Government delivered lasting protection, or will Australians remain exposed to energy chaos?
For Climate Council’s budget night media statement, see here.
