Joint media release with Treasurer Jim Chalmers, Minister for Climate Change and Energy Chris Bowen and Assistant Minister for a Future Made in Australia Tim Ayres.

Today the Government will introduce the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 to Parliament, a big step in making Australia indispensable to the global net zero transformation.

This legislation will implement our production tax incentives for renewable hydrogen and critical minerals, and also expand the role and remit of Indigenous Business Australia. 

This is all about seizing the vast economic and industrial opportunities from the global net zero transformation and strengthening our economic resilience.

This Bill will help unlock private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well‑paid jobs around the country.

It’s also about making sure the benefits from the investment flow to local workers, industries and communities around Australia.

The legislation establishes two tax incentives:

1. It establishes a Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced between 2027–2028 and 2039–40 for up to ten years per project.
2. It establishes a Critical Minerals Production Tax Incentive worth ten per cent of relevant processing and refining costs for Australia’s 31 critical minerals, for critical minerals processed and refined between 2027–28 and 2039–40, for up to ten years per project.

Renewable hydrogen and critical minerals are both essential to the world’s path to decarbonisation.

The government sees them playing a central role in Australia’s net zero future and these tax incentives make that clear and ensures these projects are delivered in ways that provide broader benefits to local communities. 

This legislation provides industry the clarity and certainty it needs to invest in Australian renewable hydrogen and critical minerals projects with confidence.

The incentives will only be provided once projects are up and running, producing hydrogen or processing critical minerals used in products like wind turbines, solar panels and electric vehicles.

Recipients of the production tax incentives will also be required to deliver benefits relating to the six Community Benefit Principles included in the overarching Future Made in Australia Bill. The specific requirements will be detailed by rules set by the Treasurer, which will be subject to further consultation.

The 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.

These tax incentives will encourage and enable new industries that put us on a path to net zero and strengthen our economic resilience.