Federal Energy Minister Chris Bowen declared Australia "well on the way" to meeting its 2030 climate goals following the latest government department figures.
Australia is chasing a 43 per cent emissions cut on 2005 levels by 2030 and a 62-70 per cent reduction by 2035, interim targets on the way to net zero by 2050.
Climate pollution fell by 2.2 per cent in the year to June 2025, the numbers from the Department of Climate Change, Energy, the Environment and Water show.
Total emissions are now 28.5 per cent lower compared to June 2005.
"We are on track to bring down energy bills and meet our climate targets if we stay the course and continue to lift our efforts," Mr Bowen said.
The Labor government is touting its progress on climate as the federal opposition backs away from formal targets to cut emissions to neutral by 2050, arguing the government's plans are too costly and largely ineffective at reducing emissions.
Mr Bowen, who has just returned from United Nations climate talks in Brazil without formal hosting rights to the next summit, said his government's practical policies, including the safeguard mechanism targeting big polluters and popular subsidies for home batteries, were working to drive down emissions.
Thursday's numbers show electricity emissions have fallen 3.3 per cent in the year to June, fuelled by more renewables. In September, wind and solar overtook coal on a monthly basis for the first time.
Emissions from industry were down 2.2 per cent, reflecting technology changes in chemicals and metals sectors, as well as in fugitive emissions, which dropped 4.3 per cent.
Transport emission ticked 0.3 per cent higher, reflecting more diesel use on the roads and higher flight activity.
Preliminary figures for last quarter suggest the downward trend would continue into the next financial year, with a 2.8 per cent decline pencilled in for the year to September.
Conservation and climate groups have been warning Australia has missed an opportunity to cut pollution further in a rework of the federal environment laws.
Labor finally secured a deal with the Greens to pass the troubled set of nature protections on Thursday.
While native forestry loopholes will be closed sooner and fossil fuel projects will not be able to be fast-tracked under the agreement with the minor party, groups like the Climate Council warn the final package falls short on putting checks on climate pollution for new development approvals.
"In the assessment pipeline sit 42 coal and gas projects that could release 8.7 million more tonnes of pollution yearly in Australia, undermining our climate targets, and progress," Climate Councillor Professor Tim Flannery said.
