Joint media release with Treasurer Jim Chalmers, Minister for Climate Change and Energy Chris Bowen, and Assistant Minister for Trade and for a Future Made in Australia Tim Ayres.
Today the Albanese Labor Government’s Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 passed the Senate, supporting Australia’s efforts to decarbonise our industries and produce and process more of the minerals needed for the energy transition.
This is all about building Australia’s future: seizing the vast economic and industrial opportunities from the global net zero transformation and strengthening our economic resilience.
It’s all about making sure the benefits from investment flow to local workers, industries and communities around Australia.
The legislation is one of the largest packages of support for the resources sector passed by Federal Parliament.
The production tax credits will help build industries of the future here in Australia, while creating good, well-paid local jobs.
The legislation establishes two tax incentives:
- Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced between 2027-2028 and 2039-40 for up to ten years per project.
- Critical Minerals Production Tax Incentive worth ten per cent of relevant processing and refining costs for Australia’s 31 critical minerals, for critical minerals processed and refined between 2027-28 and 2039-40, for up to ten years per project.
The incentives will only be provided once projects are up and running, producing hydrogen or processing critical minerals used in products like wind turbines, solar panels and electric vehicles.
Critical minerals are also vital to the defence industry and are needed for the construction of submarines and aircraft.
We recognise that the best opportunities for Australia and its people lie at the intersection of industry, energy, resources, skills and our ability to attract and deploy investment.
These tax incentives will leverage traditional strengths and encourage and enable new industries which help maximise our opportunities in the global net zero transformation.
