"These significant investments recognise the central role our resources will continue to play in our economy and future prosperity"
CME Chief Executive Officer, Rebecca Tomkinson
The Chamber of Minerals and Energy of WA (CME) has welcomed the Federal Government's 2024-25 Budget and its centrepiece $22.7 billion Future Made in Australia package including a $7 billion investment in processing critical minerals.
CME Chief Executive Officer, Rebecca Tomkinson, said WA's resources sector had once again contributed to a strong federal budget position, with higher commodity prices driving an additional $5.5 billion in company tax receipts in 2024-25 relative to the Mid-Year Economic and Fiscal Outlook.
"These significant investments recognise the central role our resources will continue to play in our economy and future prosperity," said Ms Tomkinson.
"It's pleasing to see the Federal Government adopt CME recommendations such as a production tax incentive for critical minerals, funding for common-user infrastructure and support to bridge the commerciality gap for renewable hydrogen singled out in the Budget under the Future Made in Australia package. Reforms to streamline Australia's foreign investment review processes for low-risk investors is an important complementary measure."
Ms Tomkinson also noted the Federal Government's pre-Budget announcement last week of $566 million under the Resourcing Australia's Prosperity initiative to boost data collection and mapping of resources deposits on land and under the seabed.
Minister King's strong engagement with industry is evident in the design of the initiatives announced today.
"Recommendations for unlocking investment were at the heart of CME's Federal Pre-Budget Submission, so it's positive to see the government has paid attention to exploration's role in developing the pipeline of resources projects that will support the energy transition," she said.
"We need to ensure that the work being done to improve the identification of resources deposits is complemented by fit-for-purpose policies and frameworks to develop those opportunities in a timely and efficient way.
"When the WA resources sector is strong and competitive, it has a positive flow-on effect for the Australian economy and community."
However, she reiterated that ensuring a strong ongoing contribution from the resources sector would require inter-departmental coordination if strategic industry and decarbonisation ambitions were to be realised.
"We need assurances that our sector, which is contributing so much to the state and national economies, is not hamstrung by unintended consequences from reforms in the environmental approvals and industrial relations space," Ms Tomkinson said.
"The Government needs to ensure policies are formed on the bedrock of timely and efficient approvals and competitive fiscal and policy settings across energy, industrial relations and enabling infrastructure."
Ms Tomkinson added that the establishment of a National Interest Framework to guide the Federal Government's support under the Future Made in Australia policy made strategic sense.
"We need to play to our strengths, develop sovereign capabilities in critical areas and be realistic about where we can and can't compete. Embracing those core objectives opens up opportunities to work more strategically with our trading partners."
Key announcements in the Budget included:
- Critical Minerals Production Tax Incentive - $7 billion over the 11 years from 2023-24 to provide a 10 per cent credit for relevant processing and refining costs for Australia's 31 critical minerals. The incentive will be applicable for up to 10 years per project, for production between 2027-28 and 2039-40 by projects that reach final investment decisions by 2030.
- Hydrogen Production Tax Incentive - $6.7 billion over the 10 years from 2024-25 to provide a $2/kg incentive to support the growth of a competitive renewable hydrogen industry and Australia's decarbonisation. The incentive will be applicable for up to 10 years per project, for production between 2027-28 and 2039-40.
- Future Made in Australia Innovation Fund - $1.7 billion over ten years from 2024-25 to support innovation, commercialisation, pilot and early-stage development in priority sectors including renewable hydrogen, green metals, low carbon liquid fuels and clean energy technology manufacturing such as batteries.
- Battery Breakthrough Initiative - $523.2 million over seven years from 2024-25 to promote the development of battery manufacturing capabilities through production incentives targeted at the highest value opportunities in the supply chain.
- Strengthening Approvals Processes - $182.7 million over 8 years from 2023-24 to strengthen approvals for renewable energy, transmission and critical minerals projects, improve social license outcomes, reduce the backlog of complex cultural heritage applications and streamline Australia's foreign investment applications.
