Wednesday a BIG day for AVL (and others too) Will it be yes or...

Wednesday a BIG day for AVL (and others too)
Will it be yes or will it be no?
https://www.theaustralian.com.au/na...l/news-story/8efe669480496a404c44be4206fc115f


Labor to introduce Future Made in Australia bill
PATRICK COMMINS
37 minutes ago



The Coalition has already flagged it is opposed to production tax incentives for critical minerals and hydrogen. Picture: Bloomberg

The Albanese government on Wednesday will introduce its Future Made in Australia legislation into parliament, as Labor seeks to enshrine
into law its ambitious industrial agenda aimed at driving “a stronger, more diversified and more resilient economy powered by renewable energy”.

The May 14 budget committed $22.7bn over the coming decade to drive investment into areas considered critical for the net-zero transition, as well as help underwrite key sectors that boost national economic security and resilience.

The Made In Australia bill will legislate the National Interest Framework, which Treasury has said “clearly articulates how priority sectors will be identified”, and introduce the assessment process to guide where taxpayer money will be spent.


The legislation will also outline “community benefit principles”, to ensure the Future Made in Australia agenda also achieves social goals, such as promoting secure and well paid jobs, and developing more skilled and inclusive workforces.

Under the bill, Treasury’s advice can be sought through the establishment of written “Future Made in Australia Plans”.

Labor’s package will guarantee funding for The Australian Renewable Energy Agency, and establish a Future Made in Australia Innovation Fund to support emerging technologies, such as green metals and low carbon liquid fuels.

Treasury has already started consultation on the government’s proposed two production tax incentives, which are designed to accelerate the start date of a future hydrogen industry and boosting the critical minerals industry.

The hydrogen fuel incentive will be $2 per kilogram of hydrogen produced, provided as a refundable tax offset.

The critical minerals incentive is a similar tax offset worth 10 per cent of eligible expenditure on processing and refining. Both measures are limited to 10 years.

Labor may struggle to get the legislation through parliament.

The Coalition has flagged it is opposed to the proposed production tax credits and is yet to decide whether it will back the legislation that provides the framework for Made in Australia.

The Greens have said their support is contingent on the legislation not enabling future fossil fuel production.

Before the release of the National Interest Framework, the current and all former heads of the Productivity Commission warned of the potential for Labor’s industrial policy to waste taxpayer money by propping up uncompetitive industries.

These fears have been amplified by an already announced $1bn support package to help build a domestic solar panel manufacturing industry, despite Australia’s clear competitive disadvantage internationally.