The 2024–25 Federal Budget released on May 14. Australian Mining takes a look at how the industry has reacted to the funding.
A refresher
Renewables and critical minerals arguably came out the winners of the Federal Budget, with $22.7 billion set to go into the Future Made in Australia initiative to help build a stronger, more diversified and more resilient economy powered by clean energy.
A new Critical Minerals Production Tax Incentive will also provide a production incentive valued at 10 per cent of relevant processing and refining costs for Australia’s 31 critical minerals.
The incentive is worth almost $32 billion, with $13.7 billion set aside over the next decade to continue to fund the initiative.
Applicable for up to 10 years per project, the incentive is available for projects in production between 2027–28 and 2039–40 that reach final investment decisions by 2030.
QRC
The Queensland Resources Council (QRC) has welcomed the initiatives, but is urging the Federal Government to promote exploration and investment throughout other commodities.
“The Critical Minerals Production Tax Incentive, funding to progress common user facilities and $566 million to Geoscience Australia to develop new data are all important announcements that will benefit our critical minerals industry,” QRC chief executive officer Janette Hewson said.
“The resources sector is proud of its significant contribution to Australia’s economic security through taxes, royalties and jobs, and the QRC urges Governments to focus on policies that encourage the essential private investment required to develop projects that benefit all Australians.
“Communities across Queensland and Australia rely on a strong resources sector.”
CME
The Chamber of Minerals and Energy of WA (CME) has highlighted the $22.7 billion spend on the Future Made in Australia initiative as a positive for the industry.
“These significant investments recognise the central role our resources will continue to play in our economy and future prosperity,” CME chief executive officer Rebecca Tomkinson said.
“It’s pleasing to see the Federal Government adopt CME recommendations such as a production tax incentive for critical minerals, funding for common-user infrastructure and support to bridge the commerciality gap for renewable hydrogen singled out in the Budget under the Future Made in Australia package.”
Tomkinson reiterated that ensuring a strong ongoing contribution from the resources sector would require inter-departmental coordination if strategic industry and decarbonisation ambitions were to be realised.
“The Government needs to ensure policies are formed on the bedrock of timely and efficient approvals and competitive fiscal and policy settings across energy, industrial relations and enabling infrastructure,” she said.
AMEC
The Association of Mining and Exploration Companies (AMEC) has commended the Federal Government’s critical minerals funding.
“This announcement from the Treasurer demonstrates how serious the Government is about the energy transition and decarbonising the Australian economy,” AMEC chief executive Warren Pearce said.
“A Critical Minerals Production Tax Incentive is the cornerstone of the ‘Future Made in Australia’ strategy and sends a clear message to Australians and the world, that Australia means business.”
Pearce said AMEC will continue to work closely with the Federal Government on developing strategies to benefit the resources sector.
“Australia is already so much more than a dig and ship country,” he said. “This announcement strengthens the economics to ensure we can value-add to our critical minerals, which are highly sought after across the globe.
“It will generate new projects in new industries that will drive further economic growth, thousands of new jobs and continue to deliver our high standard of living.”
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