The Australian Aluminium Council (the Council) welcomes the opportunity to make a submission on the 2026-27 Safeguard Mechanism Review Consultation Paper (the Paper). The Council’s perspective is informed by its representation of Australia’s resilient, competitive and sustainable integrated bauxite mining, alumina refining, aluminium smelting and downstream processing
industries. This value chain is strategically important to Australia’s economic strength, regional communities, industrial capability and transition to a low-carbon future. As global competition for
strategically important minerals and manufactured products intensifies, Australia’s integrated aluminium industry is increasingly recognised as a national asset by both domestic and international partners.
The 2026/27 Review of the Safeguard Mechanism is an opportunity to examine its operation, but it is important to recognise that it is based on only two years of publicly available data. The Safeguard Mechanism is also not a whole-of-economy carbon price operating within a global emissions trading scheme, so attempting to use it as such risks policy failure and could make the cost of compliance for Australian industry sufficiently high to risk deindustrialisation. The Council believes that the core design should be maintained as the least-cost and least-complex option and supported by further incentives rather than additional compliance burdens. Industry needs more “carrots” than “sticks” to compete internationally.
The Council’s Members have also made their own submissions which should be read alongside this industry position.
