2025 brought with it a rush of policy announcements. Here at The Next Economy, we’re reflecting on what we’ve learnt through our work with regions and how they can continue to manage change well in 2026 and beyond.
Last year brought a flurry of action on climate and nature. We saw the release of Australia’s first National Climate Risk Assessment, long-awaited reforms to environmental laws, and new national and state strategies for energy, industry and regional investment – alongside a range of net zero sector plans. What matters now is how these policies are resourced and rolled out in practice, and whether they lead to the kind of meaningful change that regional communities have been calling for.
Regions are often on the frontline of change: whether that’s shifting industry policy, rising climate risk, or new infrastructure investment. They are also home to a wealth of knowledge, capacity and strategic value. From critical minerals to renewable energy zones, from agricultural production to local manufacturing, regional communities are central to many of the systems that shape our economy.
But while the stakes are high, regional communities are not always given the time, attention or resources they need to engage with and influence these changes. That’s a risk not only for regional wellbeing, but for the success of plans and strategies to transition the Australian economy itself.
What outcomes can development deliver for regional communities when it’s done well?
Our work is guided by a simple question: what does ‘good’ look like when it comes to managing change in regional communities? Supporting positive change is a shared responsibility. Communities, industry, business, investors and all levels of government each have a role to play. When done well, development builds on local strengths, reflects community priorities, delivers shared benefits, and helps both people and places thrive.
Through conversations in diverse regions experiencing major economic change, a set of shared economic goals and ideas of what good development might look like has emerged. These include:
- A diverse and resilient economy: Long-term resilience depends on diversifying the local industry base, supporting local enterprise, and backing emerging opportunities for a future ready economy – from renewable energy development and the decarbonisation of agriculture, to the adoption of circular economy practices and community wealth building initiatives.
- Social infrastructure and services: Access to services like housing, health, education and care is essential for people to live and work well in regional areas. These services support liveability, job opportunities and the long-term strength of local economies.
- Caring for Country and nature: Healthy ecosystems underpin both economic, social and cultural life. Good transition planning supports regeneration and respects environmental limits.
- Resilient lifelines: Infrastructure that is fit-for-purpose and resilient to future pressures such as climate impacts, technological advances and system changes keep the critical services and lifelines that maintain community life and underpin local economies operating.
- First Nations economic self-determination: Supporting First Nations leadership and decision making, alongside the growth of Indigenous-owned businesses, strengthens economic sovereignty and delivers cultural, environmental and economic benefits.
- Space for innovation and local knowledge: Transition is not linear. Regions need the time, resources and forums to learn, adapt, and lead – drawing on the experience of communities.
- Strengthening social foundations: Strong communities are built on health, connection and time for what matters. Good development supports local institutions, participation and the conditions for families and communities to thrive.
How change is managed locally will shape the future of the regions
None of this is possible without continued investment in the people and processes that make good development possible: local engagement, collaboration, coordination and community leadership. For us, this means spending time in regions, listening deeply, understanding local priorities and concerns, and supporting people to strengthen the skills and confidence they need to lead change over time.
Our experience is that when local leadership and relationships are genuinely valued, regional stakeholders are able to shape decisions and drive outcomes as true partners. This creates stronger opportunities to deliver shared value and achieve positive lasting outcomes.
Looking forward to the year ahead
We have repeatedly seen that when communities are properly engaged and supported, they are more than ready to lead. In Mount Isa, local workshops helped bring together council, community and industry to chart a path through the closure of a major mine. In Uralla Shire, community dialogues have shaped the direction of the local renewable energy plan.
Early, inclusive planning, iterative engagement, access to supportive resources, ongoing dialogue, transparency, and a clear focus on regional wellbeing all help shape stronger outcomes over time. These aren’t new ideas to those working in or with regional communities, but they’re worth repeating and keeping front of mind as change unfolds. We’ll be sharing more reflections on what this looks like in practice in the months ahead.
With so much change already underway, and with regions at different points along their own journeys, we return to our same central questions, and support our regional stakeholders to ask of each other: what does ‘good’ look like for our community, and what will it take for us to get there together?
You can read more about our in-region engagement on this topic in these webstories: