Senator the Hon Katy Gallagher

The Albanese Government will today introduce the 2025–26 Fuel Security Response Appropriation Bills to ensure the Government can respond quickly to any urgent and unforeseen fuel security challenges that may arise before the end of the financial year.

The Bills establish a new $2 billion Advance to the Finance Minister (AFM), providing flexibility to support fuel security response measures and related expenditure where funding needs cannot be met through existing appropriations.

The AFM is split across the two Bills in the standard proportion:

• $800 million in Appropriation (Fuel Security Response) Bill (No. 1) 2025–26
• $1.2 billion in Appropriation (Fuel Security Response) Bill (No. 2) 2025–26

The proposed AFM will be available only for the remaining three months of the 2025–26 financial year (to 30 June 2026), ahead of the expected passage of the 2026–27 Budget Appropriation Acts.

It is intended to be available, if required, to fund domestic fuel-related responses and to complement the Government’s amendments to the EFIC Act being introduced today, which enable EFA to support industry to source cargoes overseas. Together, these measures ensure a joined-up approach to scaling production and distribution at home and sourcing fuel from overseas.

The Bills do not provide any new funding allocations to government entities. Funding will only be drawn down if required, and only for fuel security response measures and related purposes.

Access to the AFM will be limited to entities listed in the Bills, providing broad coverage across relevant portfolios, including industry, energy, agriculture, infrastructure, foreign affairs and the Treasury.

Strong transparency and accountability safeguards will apply, consistent with arrangements used during the COVID 19 response, including public registration of AFM determinations, concurrence of the Shadow Minister for Finance, on behalf of the Opposition, for any proposed AFM allocation over $1 billion and reporting to Parliament and independent assurance by the Australian National Audit Office.

The Government is seeking the accelerated passage of the Bills during the current sitting week to ensure funding certainty should urgent fuel security action be required at short notice

Quotes attributable to Minister for Finance Katy Gallagher 

“The Albanese Labor Government is working hard to ensure Australia is prepared for any circumstances, with the right legislative and funding frameworks ready to be activated if an urgent fuel security response is needed.

“The introduction of these Bills is a prudent step to ensure the Government has the capacity to respond swiftly to any urgent fuel security challenges that may arise before the end of the financial year.

“This legislation was about preparedness and responsible fiscal management. They do not commit new spending, but they do make sure that if action is needed at short notice, the funding framework is in place and subject to strong safeguards.”