The Australian Government has introduced the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 to Parliament. The new legislation positions Australia as a key player in the global net zero shift, focusing on renewable hydrogen and critical minerals.
Treasurer Jim Chalmers, Minister for Climate Change and Energy Chris Bowen, and Assistant Minister for a Future Made in Australia Tim Ayres have jointly outlined how the Bill will drive economic growth, sustainability, and local job creation across Australia.
Key Provisions of the Legislation
The Future Made in Australia Bill introduces tax incentives to boost renewable hydrogen and critical minerals production, aiding global decarbonisation. The Hydrogen Production Tax Incentive provides $2/kg for renewable hydrogen production from 2027-2028 to 2039-2040, supporting a decade-long transition. This initiative aims to make Australia a leading supplier of renewable hydrogen, essential for the global transition to net zero.
Similarly, the Critical Minerals Tax Incentive offers 10% on refining costs for 31 key minerals essential for green technologies like EVs and solar. The incentive supports mineral processing from 2027-2028 to 2039-2040.
Also read: CIP Launches New Renewable Energy Platform in Australia
Seizing Opportunities in the Global Net Zero Transformation
The Government views renewable hydrogen and critical minerals as integral to Australia’s future in a net zero world. The legislation’s tax incentives drive private investment, advancing Australia’s climate goals, diversifying the economy, and creating new job opportunities.
Also read: Australia Commits $50 Million to Global Loss and Damage Fund at COP29
Focus on Community Benefits and Local Impact
The legislation emphasizes ensuring that renewable hydrogen and critical mineral production benefits local communities, alongside supporting global decarbonisation goals. Recipients of the production tax incentives must meet six Community Benefit Principles outlined in the Future Made in Australia Bill. By doing so, these principles ensure that local workers, industries, and communities receive tangible advantages from these projects.