Tomago Aluminium Bailout Solidifies Government Loss of Control
Australia’s manufacturing sector is being steadily weakened under the Albanese Labor Government, not through a single bad decision, but through a pattern of failure. What we are seeing now is not economic management. It is crisis containment. Labor is applying band-aids to a bullet wound, and taxpayers are being handed the bill.
The Government’s decision to bail out Tomago Aluminium is the latest example. This is the same Tomago Aluminium facility Anthony Albanese has been promising to protect for decades. Rather than delivering on those promises by fixing the underlying problem, affordable and reliable energy, Labor has chosen another bailout to paper over the consequences of its own policies.
On 12 December 2025, the Prime Minister announced that Tomago Aluminium would continue operating beyond the end of its current energy contract in 2028. That is welcome news for workers, their families, and the Hunter region. But bailouts are not a solution. They are an admission of failure.
This deal follows a disturbing pattern, as 2025 became the year of government bailouts. A $2.4 billion taxpayer rescue of Whyalla Steelworks. Then interventions in Hobart and Port Pirie. In Queensland, a bailout to keep Glencore’s copper smelting operations afloat, and now, Tomago in NSW. A pattern of failure across the country.
Labor’s energy policy is now so broken that major manufacturers cannot survive without taxpayer life support.
Under the Albanese Labor Government, power prices are up by around 40 per cent. Families are paying roughly $1,300 more on their annual electricity bills. Business investment is stalling. Manufacturing competitiveness is collapsing. And instead of fixing the root causes, high energy prices, punitive regulation, and policy uncertainty, Labor is asking taxpayers to underwrite failure.
Corporate bailouts do not address these issues. They merely delay the reckoning. They are hospital passes that disguise Labor’s failure to confront its own terrible trifecta: soaring energy prices, high taxes, and rigid regulation.
Labor’s broader economic mismanagement compounds the problem. Reckless federal spending has fuelled inflation, pushing up costs across the economy. For energy-intensive industries like manufacturing, that pressure is relentless. When even global multinationals are struggling to operate in Australia, the question must be asked: what chance do our small and medium-sized manufacturers have?
Australia has already reduced emissions at almost double the rate of the developed world since 2005. Yet to meet Labor’s Net Zero 2050 target, emissions reductions would need to double again. Labor is setting targets it cannot realistically meet, at a cost Australia cannot afford.
The result is exactly what we are seeing today: electricity prices spiralling upwards, businesses shutting down or moving offshore, and a nation increasingly reliant on taxpayer-funded bailouts delivered through opaque mechanisms like the National Reconstruction Fund and the so-called Future Made in Australia agenda.
Australians deserve a cheaper, better and fairer solution. They deserve affordable power, responsible emissions reduction, and an energy policy grounded in reality, not ideology. The Coalition believes we can achieve emissions reduction without sacrificing competitiveness, jobs, or living standards; but affordable energy must come first.
Our plan delivers a practical pathway to lower power prices, long-term energy security, and responsible environmental outcomes.
Australians have been let down by this Government. What they need now is a circuit breaker on energy costs and leadership that fixes the system instead of subsidising its failure. That is what the Coalition offers, and that is what Australian manufacturing urgently needs.
ENDS
Caption: Andrew Willcox MP calls for affordable power and leadership as Labor resorts to bailouts across Australia.
Contact: Amanda Wright | Media & Communications Adviser
P | 07 4944 0662 M | 0455 456 705 E | Amanda.Wright@aph.gov.au