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ARTICLE · 28 MAY 2026

Federal Budget 2026–27: Implications For Australia’s Renewable Energy Sector

Holding Redlich
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Australia's 2026-27 Federal Budget introduces targeted capital gains tax reforms for foreign investors in renewable energy infrastructure while focusing on system integration and market modernisation. The Budget notably avoids substantial new funding for large-scale renewable generation, raising questions about how the nation will achieve its ambitious 82% renewable electricity target by 2030.

AustraliaEnergy and Natural Resources
Jeanne Vallade
Jeanne Vallade
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The 2026–27 Federal Budget delivers a mixed outcome for Australia's energy transition. While the Budget includes targeted measures relating to system integration, market regulation and foreign investment settings, it does not introduce substantial new funding for large-scale renewable generation or transmission infrastructure. This is a significant policy choice at a time when Australia is pursuing a target of 82% renewable electricity by 2030 and a 62% to 70% reduction in emissions below 2005 levels by 2035 under its Nationally Determined Contribution pursuant to the Paris Agreement.

Capital Gains Tax reforms for foreign investors

A key measure in the Budget relates to the treatment of foreign investment in renewable energy assets.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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