"When commodity prices are high, Australia wins," Chamber of Minerals of Western Australia CEO Rebecca Tomkinson said.
"The resources sector pays more than 30% of Australia's total company tax income to improve our nation's budget bottom line."
The budget included A$80.5 million over four years to support the Australian critical minerals sector to build diverse and competitive supply chains, attract international investment and transition to net zero.
However, the long-mooted Critical Minerals Strategy is still yet to be released.
"Ensuring Australia can compete internationally in attracting critical minerals investment will be important, particularly in light of the US$370 billion in tax breaks and grants through the United States Inflation Reduction Act 2022," Association of Mining and Exploration Companies chief executive Warren Pearce said.
"Without substantially stronger support from Australian governments and Australia's international partners, the ability for Australian projects to attract capital for value-adding will diminish, and with it, the opportunity to realise greater value from our resources and the highly skilled and highly paid jobs that would accompany it."
Industry groups welcomed the government's migration strategy, infrastructure spending and the establishing of the $2 billion Hydrogen Headstart program.
However, both the CME and AMEC were concerned about the changes to the Petroleum Resources Rent Tax (PRRT), which is expected to generate an additional $2.4 billion in revenue and add to the already record levels of PRRT revenues, bringing the total forecast to be raised to $13.4 billion over the forward estimates.
"The decision to alter the Petroleum Resource Rent Tax to levy greater revenue from these projects sets a concerning precedent for Australian industry," Pearce said.
"As do a range of foreshadowed regulatory measures that are likely to threaten greater investment in mining and mineral exploration."
Tomkinson said WA's energy and mining sectors provided tens of thousands of jobs.
"It is critical that governments continue to provide supportive fiscal and policy settings to secure future investment and ensure the long-term sustainability of these critical industries."
