The federal government will today introduce the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 to implement production tax incentives for renewable hydrogen and critical minerals to help boost investment in the sector.
Related article: CSIRO highlights key role of critical minerals R&D in transition
The legislation establishes two tax incentives:
- It establishes a Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced between 2027–2028 and 2039–40 for up to 10 years per project.
- It establishes a Critical Minerals Production Tax Incentive worth 10% 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.
Minister for Resources and Minister for Northern Australia The Hon Madeleine King MP says, “The government sees renewable hydrogen and critical minerals playing a central role in Australia’s net zero future.
“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.
Related article: Critical minerals industry gets $400M federal funding
The specific requirements will be detailed by rules set by the Treasurer, which will be subject to further consultation.
