Prime Minister Anthony Albanese announced a new Act to invest in green energy earlier this week at the Queensland Media Club.
Dubbed the Future Made in Australia Act, Albanese said the Federal Government is committed to enticing more investment in renewable energy and critical industries.
The Act is essentially Australia’s response to the US’ Inflation Reduction Act (IRA), which includes a $US30 billion advanced manufacturing production tax credit (AMPTC) that subsidises the downstream processing of critical minerals.
Back in February, a report commissioned by the Association of Mining and Exploration Companies (AMEC) and prepared by Mandala Partners suggested Australia should also introduce its own production tax credit if it’s mining and downstream industries are to remain globally competitive.
Now, it seems the Federal Government has heeded that suggestion.
“In this time of transformative opportunity, our Government will not be an observer or a spectator – we will be a participant, a partner, an investor and enabler,” Albanese said in his speech.
“We will be guided by three principles. First, we need to act and invest at scale. Second, we need to be more assertive in capitalising on our comparative advantages and building sovereign capability in areas of national interest.
“Thirdly, we will continue to strengthen and invest in the foundations of economic success.”
Albanese said it is an important time for the Government to invest in the critical manufacturing arm of the country.
“Our Government is investing in manufacturing to make more things here,” he said. “We’re building the infrastructure and clean energy to power new growth. We’re training people in new technologies.
“A clear path to investing in Australia, in Queensland, in hydrogen, green metals and advanced manufacturing. And the right skills, supply chains and processes to get projects up and going and see this investment realise a return.”
The Association of Mines and Exploration Companies (AMEC) has applauded the move.
“The (Prime Minister’s) big picture pitch to create a ‘Made in Australia’ economy is a shot in the arm the mining industry needs to invest in value-adding,” AMEC chief executive officer Warren Pearce said.
“To hear the Prime Minister sharpening the elbows of our nation to protect and prosper is very encouraging.
“The Prime Minister is right. We cannot afford to sit on the sidelines while other countries put measures in place to secure their future. Doing nothing is simply not an option.”
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