Consultation has begun on the implementation details of the government's $13.7 billion in production tax incentives announced in the Budget.
Our production tax credits will incentivise investment in renewable hydrogen, boost production of critical minerals and create jobs and opportunities for Australians.
The global energy transformation represents a golden opportunity for Australia and our production tax incentives will help us make the most of that opportunity.
Our production tax incentives will unlock new investment and new jobs in renewable hydrogen and critical minerals processing.
Today we have released two Treasury consultation papers seeking stakeholder feedback on the Government's proposed Hydrogen Production Tax Incentive and Critical Minerals Production Tax Incentive announced as part of our Future Made in Australia package in the Budget.
The Hydrogen Production Tax Incentive
The Hydrogen Production Tax Incentive is a time‑limited measure to accelerate the growth of Australia's hydrogen industry.
It's intended to bring forward project development, make renewable hydrogen available sooner, and build scale to reduce production costs over time.
Hydrogen opens the door to green metals, including iron, steel, alumina and aluminium, which are critical to industrial decarbonisation and expected to play a key role in the net zero transformation.
Critical Minerals Production Tax Incentive
Critical minerals are the building‑blocks for important sectors like clean energy manufacturing, transport, agri‑tech, medicine, defence, space, computing, and telecommunications.
This incentive is consistent with the Government's Critical Minerals Strategy 2023-2030. It will assist to extract more value onshore from our resources by building sovereign capability in critical minerals processing. Our Critical Minerals Production Tax Incentive will allow eligible entities to claim 10 per cent of expenditure for processing and refining any of the 31 minerals currently published on the Government's Critical Minerals list.
Australia is home to some of the world's largest reserves of critical minerals needed to diversify supply chains and support low emissions technologies, including lithium, cobalt and rare earth elements.
Both papers are now available on the Treasury website (The Hydrogen Production Tax Incentive consultation paper and Critical Minerals Production Tax Incentive consultation paper) and consultation will continue until 12 July 2024.
The Albanese Labor Government's economic plan is all about easing the cost of living and fighting inflation at the same time as we invest in a Future Made in Australia.
Our production tax incentives are an important part of our Future Made in Australia agenda.
By partnering with the private sector, we'll unlock more investment in the jobs and industries of the future to the benefit of all Australians.
