The Federal Government’s new Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 will make it easier for the critical minerals industry to develop into a global leader in decarbonisation.
The new legislation implements production tax incentives for renewable hydrogen and critical minerals, helping to unlock private sector investment to build a stronger and more diversified economy.
It will establish two tax incentives:
- a Hydrogen Production Tax Incentive worth $2.00 per kilogram of renewable hydrogen produced between 2027–28 and 2039–40 for up to 10 years per project
- a Critical Minerals Production Tax Incentive worth 10 per cent of relevant processing and refining costs for Australia’s 31 critical minerals for those processed and refined between 2027–38 and 2039–40 for up to 10 years.
Chamber of Minerals and Energy WA (CME) chief executive officer (CEO) Rebecca Tomkinson welcomed the introduction of the bill.
“Australia’s resources, including our critical minerals, have a key role to play in the energy transition,” she said.
“This measure recognises the Federal Government’s commitment to supporting industry to level the playing field in what is an intensely competitive global market.
“Passage of the legislation would set an important investment signal for further value adding activities and provide certainty to industry.”
The Association of Mining and Exploration Companies (AMEC) has also welcomed the bill, with CEO Warren Pearce commending the Federal Government for “staying the course”.
“After months of detailed consultation with industry, companies and key stakeholders, it is clear that this vital assistance has been well designed and will be effective,” Pearce said.
“It provides confidence to the growing critical minerals sector and demonstrates to the market and investors, that Australia is open for business and serious about developing a value-added industry right here in Australia.”
The tax incentives will be provided once a project is up and running.
“The (Federal) Government recognises 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,” Federal Minister for Resources Madeleine King said.
“These tax incentives will encourage and enable new industries that put us on a path to net-zero and strengthen our economic resilience.”
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