The Albanese Government will give producers of designated critical minerals, which includes nickel and lithium, a 10 per cent tax credit per year for up to 10 years per project.
This means for every $100 dollars of eligible production costs the miner’s tax bill will be lowered by $10, or if it did not make enough to pay tax it can still claim a $10 refund.
The critical minerals move has an estimated cost of $17.6b, split between $7.1b from now until the 2034 financial year, and then another $10.6b until 2041.
But the credits will only kick in from July 2027, despite Australia’s nickel industry currently circling the drain.
Minerals Council of Australia chief executive officer Tania Constable welcomed the production tax credits but said they will have “no immediate impact”.
https://thenightly.com.au/politics/federal-budget-2024-295b-of-taxpayer-funded-sweeteners-for-critical-minerals-and-green-hydrogen-players-c-14666701
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