Keeping Australians safe and our economy prosperous are key priorities for the government. As the Prime Minister has said, peace, prosperity and stability can never be taken for granted. Australia is therefore investing in strong and productive strategic partnerships across our region and globally. PM&C continues to support these partnerships, including bilaterally and multilaterally, through key forums like the East Asia Summit, the Pacific Islands Forum, the United Nations, the Quad, ASEAN, Asia-Pacific Economic Cooperation and the G20. PM&C’s role is to support the Prime Minister and the Cabinet by driving and coordinating whole-of-government and whole-of-nation efforts to protect and advance Australia’s national and global interests.

Australia’s future security and prosperity will be defined by the strength and success of our engagement in the region we call home. This region, the Indo-Pacific, is facing geopolitical change and intensifying strategic competition. Australia’s goal is to secure our interests through deterrence and reassurance, building resilience and keeping multilateral institutions effective to deliver for Australia and the needs of our region. The prosperity of the Indo-Pacific has always been driven by shared opportunity and the region’s stability can only be secured through collective responsibility.

PM&C will support the new strategic conceptual approach to Australia’s defence planning and strategy – National Defence – which takes a whole-of-nation approach to security. It will require a more active Australian statecraft working to support the maintenance of a regional balance of power, broader utilisation of Australia’s national power and alignment of government policy. Our statecraft will be directed at both deepening diplomatic engagement and building stronger defence capabilities – to deter coercion and lower the risk of conflict. Australia’s conventionally armed nuclear powered submarine acquisition and advanced capabilities collaboration under AUKUS will strengthen our capabilities through the most challenging times so far this century. This will enable AUKUS partners, in collaboration with like-minded countries, to better contribute to a sovereign and resilient Indo-Pacific and to deter aggression more effectively. All AUKUS partners are committed to ensuring the Indo Pacific remains a region where all countries – big or small – are able to act in their sovereign interests to shape their own future free from coercion.

The government remains committed to Australia’s longstanding alliance with the United States. The Australian Government is committed to working with the United States Government and Congress to advance Australia’s interests and to further strengthening the ties between our nations. The Australia – United States relationship is unprecedented in scale, scope and significance, reflecting more than 100 years of partnership. It is underpinned by an enduring foundation of trust and a long record of achievement, and continues to build to tackle emerging challenges – including by making climate change cooperation the third pillar of our alliance.

Increasing geostrategic competition is challenging multilateral cooperation and global economic and financial architecture. PM&C will drive integration of domestic, international, economic and strategic policy to shape Australia’s international economic engagement so it supports economic prosperity and resilience at home and throughout our region.

Maintaining Australia’s constructive engagement with advanced and emerging economies will help bolster support for multilateralism and the international rules-based order, which are central to achieving this objective.

Domestic security and economic prosperity are mutually reinforcing and remain the foundations of Australia’s success. Strengthening Australia’s social cohesion will be central to the health of our democracy and to addressing the persistent threats posed by extremism, terrorism and foreign interference. The department supports coherent and well-consulted advice to government to tackle a range of threats, including cyber, and to promote Australia’s economic prosperity through the facilitation of trade, investment and travel.

The work of the National Intelligence Community (NIC) underpins Australia’s national security objectives. The NIC is required to respond in complex and changing circumstances to protect Australia’s security, prosperity and values. In 2024, the Independent Intelligence Review provided advice to government to ensure that our intelligence agencies remain ready to fulfil this mandate, and are aligned to Australia’s national security priorities. PM&C will support the government’s consideration of the findings of the review, and work with the NIC to implement the government’s response.

Action to address climate change

Climate change is an environmental, economic, social and national security issue, and the department will support the government in delivering a comprehensive plan on climate change. In recent years, Australians have experienced unprecedented bushfires and floods, as well as the effects of the COVID-19 pandemic. PM&C continues to support the Prime Minister and the government in responding to crises and critical issues, and in promoting whole-of-government coordination to emergency management and national resilience.

Australia is experiencing the impacts of climate change variably across the country – and the climate is projected to continue to change over the coming decades. The government is committed to taking action to reduce the long-term impacts of climate change by reducing emissions, and ensuring communities, business and the environment have the ability to adapt, respond to risks and become more resilient to climate impacts.

PM&C plays an important role coordinating action across the APS to capture the opportunities of the net zero transformation and support economy-wide emission reductions. In 2024–25, PM&C will continue to support the government to implement existing policy commitments, deliver the Net Zero Plan supported by 6 sectoral emission reduction plans, and set Australia’s 2035 emissions reduction target as required under the Paris Agreement.

Net Zero Economy Authority

The Australian Government is establishing a new statutory authority to help manage the transition to a net zero economy, especially for communities, regions, industries and workers that may be significantly affected by the change.

Legislation to establish the Net Zero Economy Authority (the Authority) was introduced in Parliament in March 2024. Subject to the passage of the legislation, it is expected the Authority will commence sometime between 1 July 2024 and 1 January 2025. In the meantime, the Net Zero Economy Agency will progress work on the proposed functions.

The Net Zero Economy Authority Bill 2024 and the Net Zero Economy Authority (Transitional Provisions) Bill 2024 set out the objects, functions, governance arrangements and the transitional arrangements for the Authority. The Authority’s functions are directed at promoting orderly and positive economic transformation as Australia transitions to a net zero economy, including consulting and cooperating with individuals, organisations and governments to support Australia’s transition to a net zero economy; facilitating participation and investment in net zero transformation initiatives; and supporting workers in emissions-intensive industries to access new employment or improve their employment prospects.

The legislation also establishes the Energy Industry Jobs Plan. The Energy Industry Jobs Plan will deliver redeployment plans for workers impacted by the closure of gas- and coal-fired power stations, coordinated by the Authority. Redeployed workers will be supported to transition directly to new employment, reducing the risks of long-term unemployment, while also reducing the risk of closing power stations and dependent businesses losing staff who are necessary to safely operate facilities until closure.

The Authority will be led by a governing board, made up of a chair and up to 8 other members with varied expertise relevant to the net zero economic transformation. The board will be responsible and accountable for the Authority’s strategy, governance and performance, including financial performance. The Chief Executive Officer will be responsible for day-to-day operations. The government has announced its intention to appoint the acting Chair of the Net Zero Economy Agency, Dr Iain Ross, as the inaugural Chair of the Authority.

All levels of government and the private sector will need to work in a more coordinated manner to realise the transformation to a net zero economy. The Authority will play an important role in achieving alignment by:

• seeking appropriate consideration of transformation implications for regions, communities, industries and workers in the design and delivery of relevant policies, programs and plans
• coordinating whole-of-government consideration of cross-cutting net zero economic transformation issues, opportunities and challenges
• collaborating with state and territory governments, communities and Aboriginal and Torres Strait Islander people.

Future Made in Australia

The government’s Future Made in Australia agenda takes further steps to capture the opportunities of the net zero transformation, as well as to strengthen Australia’s economic resilience and security. This agenda includes initiatives to attract investment in key industries, make Australia a renewable energy superpower, strengthen Australia’s supply chain resilience, and give businesses, communities and individuals opportunities to benefit from the net zero transformation.

The government has committed to legislating its Future Made in Australia agenda, including a national interest framework to identify priority industries and ensure support is responsible and targeted. The government will also apply community benefit principles in relation to investments in priority industries. These principles will have a focus on investment in local communities, supply chains and skills, and the promotion of diverse workforces and secure jobs.