Australia will produce and process more of the minerals needed for the energy transition after Parliament supported the Albanese Government’s Critical Minerals Production Tax Incentive legislation.
The legislation is one of the largest packages of support for the resources sector passed by Federal Parliament.
Federal Resources Minister Madeleine King said the incentives will be a game changer for the sector.
“The passing of this legislation is a historic moment for the resources industry and a big deal for resource states like Western Australia and Queensland,” Minister King said.
“By processing more of these minerals here in Australia we will create jobs and diversify global supply chains.
“Critical minerals and rare earths are key to the world’s efforts to reduce emissions and they vital for our national security.”
Despite receiving overwhelming support from industry groups and critical minerals companies across the country, the Coalition opposed the bill.
“Peter Dutton is more interested in playing politics than supporting our resources industry and this is evidence he has turned his back on our national security, on our resources sector and on hardworking Australians.
“Peter Dutton and the Western Australian Liberals have turned their back on the Western Australian critical minerals and rare earths industry,” Minister King said.
Critical minerals and rare earths are used in solar panels, batteries and other technology needed to reduce carbon emissions.
They are also vital to the defence industry and are needed for the construction of submarines and aircraft.
The Critical Minerals Production Tax Incentives will provide a refundable tax credit on 10 per cent of eligible costs associated with the production of critical minerals and rare earths.
The Incentives are valued at $7 billion over the decade. The CMPTI will be available for up to 10 years per project, for production between 1 July 2027 and 30 June 2040.
