A message from Jens Goennemann

It has been a week spent dissecting the Federal Budget 2024 by some eminently qualified people. In that light, what can I hope to add? Well, here is my best effort.

I had two immediate reactions last Tuesday. One was a question about inflationary pressures with $24 billion in added spending over the forward estimates and the lion’s share of this is in the next two years.

The impact of those spendings on inflation remains to be seen. The same applies on additionality: Will these spendings make a noticeable impact? A week of discussion and we are no closer to knowing the answer. Only time will tell.

The second reaction was that for one of the most manufacturing-labelled budgets I can remember – there was an overlooked constituency. I am talking about our immeasurably capable yet smaller enterprises – those manufacturers who are willing and worthwhile to grow from small to medium.

In regard to the overall narrative around manufacturing in the 2024 Budget, I felt our high-achieving manufacturers, the ones with the potential to internationalise and scale, were overlooked.

Given our history, AMGC has skin in this game. We have spent our existence to connect with, learn from, and finally back those kind of companies I am concerned about. Since their AMGC-backed projects have been completed, many of them have scaled up handsomely by attracting further funding from the capital market. Many have also received multiple visits from politicians keen to find out what good looks like and how those companies can help support the government’s agenda.

For A Future Made in Australia budget, I believe it has missed these manufacturers who hold the most promise for our country. It is also unfortunate news for other government schemes that rely on this pipeline of opportunities to address our most pressing problems as this pipeline is about to run dry.