Australia’s mining industry is set to benefit from the continuation of key policy initiatives after Prime Minister Anthony Albanese and the Labor Party secured a resounding victory in the 2025 federal election.

The outcome paves the way for the implementation of the A$7-billion critical minerals production tax incentive (CMPTI), a policy designed to support downstream processing and boost Australia’s global competitiveness in battery and energy transition materials. 

Labor will also move ahead with plans to create a A$1.2-billion critical minerals strategic reserve aimed at bolstering domestic and allied supply chains.

“With a mandate now secured, it is time for action on key policy initiatives that will support long-term investment and drive Australia’s international competitiveness, especially in critical minerals,” said Association of Mining and Exploration Companies (Amec) CEO Warren Pearce in a statement on Sunday.

The CMPTI, which passed Parliament before the election, is intended to “level the playing field with global competitors and provide the certainty investors need to commit to major downstream processing projects in Australia", Pearce said.

The strategic reserve is viewed as a complementary measure to the tax incentive, providing government backing for stockpiling priority minerals amid ongoing geopolitical and market volatility.

“The strategic reserve is a positive reaction to global uncertainty and aligns with the CMPTI, to provide much-needed support to the emerging critical minerals industry,” Pearce added. “We anticipate a detailed industry consultation period shortly, to help identify priority minerals, how it will work, and engagement with our strategic partners.”

Amec, which represents more than 600 explorers and miners across the country, welcomed Labor’s win as a stabilising force for the industry, especially following what it called “a disappointing result for the Greens".

“A convincing win by Labor and a disappointing result for the Greens shows Australians expect a more balanced approach on environmental issues, one that keeps impacts on our economy in mind,” said Pearce.

Beyond critical minerals, the group is calling on the returned government to extend the junior minerals exploration incentive (JMEI), a refundable tax credit scheme for greenfield exploration that is set to expire.

“You can’t mine what you can’t find,” Pearce said. “The exploration sector is struggling, with investment extremely hard to come by, and this crucial cog in the wheel of mining industry needs clarity around the continuation of JMEI.”

“The JMEI is a proven and effective programme that stimulates early-stage investment and helps find the minerals in the ground that will power our future economy and net-zero ambitions.”

Amec also urged further consultation on the government’s nature positive reforms, including a call for the Environment Minister to retain final decision-making powers and for existing state and territory environmental approval systems to be formally recognised to avoid regulatory duplication.

As Labor prepares to form government for a second term, industry groups are pressing for early engagement on the legislative design of both the strategic reserve and the new tax incentive, as well as clarity on exploration support.

“The exploration industry cannot afford to wait. A clear commitment to the JMEI will deliver a strong signal that Australia is serious about developing its next generation of mining projects,” Pearce said.

Meanwhile, Chamber of Minerals and Energy WA CEO Rebecca Tomkinson said streamlining and accelerating federal environmental assessments would be key to reversing the recent decay in Australia’s investment fundamentals.

“Environmental law reform is long overdue but must deliver on the stated goal of improving outcomes for both the environment and for business. The only way to achieve that is through early, open and frequent consultation with all stakeholders."

Tomkinson said well-designed industrial policy could position Western Australia as a trusted and stable supplier of rare earths and other critical minerals as the globe scrambles to diversify supply chains. 

Commenting on the critical minerals strategic reserve, she said it was a potentially important avenue to unlock investment in Australia’s rare earth reserves, which were the third largest in the world. “However, it is vital any plans for stockpiling contain safeguards against applying continued downward pressure to commodity prices that might impact the viability of existing or prospective Australian operations.” 

Tomkinson said the best way to sustain and grow the Western Australian resources sector remained reducing the cost and complexity of doing business.