1 Home King Media Releases Production tax incentives to help...

1 Home King Media Releases Production tax incentives to help build a Future Made in Australia

Production tax incentives to help build a Future Made in Australia

25 November 2024

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.

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.

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.

As always there's always a catch. Read the last sentence.