The Chamber of Minerals and Energy WA (CME) welcomes today's passage of the Future Made in Australia (Production Tax Credits) Bill, which enacts important support for critical minerals processing and hydrogen production.
CME Chief Executive Officer Rebecca Tomkinson said the newly legislated production tax incentives (PTI) would help Australia leverage its traditional strength in upstream mining to advance further down the value chain.
"Offering production tax incentives for hydrogen production and critical mineral processing sends a clear message to investors that Australia is serious about seizing the opportunities presented by the global energy transition," Ms Tomkinson said.
"We know Australian resources have a central role to play as the world transitions to net zero, and the passage of this important Bill will help to unlock more of them."
The Bill establishes a Hydrogen PTI worth $2 for every kilogram of renewable hydrogen produced for up to 10 years per project.
It also creates a Critical Minerals PTI worth 10 per cent of eligible processing and refining costs for designated critical minerals, again for up to 10 years per project.
Ms Tomkinson said CME had advocated strongly for both measures to provide a response to generous government support on offer in competing countries.
"While these PTIs will help level the playing field, they must be accompanied by a laser-like focus on improving project fundamentals, including driving down energy costs and speeding up assessments," Ms Tomkinson said.
"We have very little prospect of moving into more downstream processing without policy settings designed to maintain and grow Australia's standing as a premier mining jurisdiction.
"Our recently released Federal Pre-Budget Submissions contains more than 90 recommendations to reverse years of falling productivity and jumpstart resources investment.
"They include unwinding recent IR reforms, pausing stage two of the Nature Positive legislation to allow further consultation, accelerating the build-out of electricity infrastructure and cutting the corporate tax rate to a more globally competitive 25 per cent.
"CME has also recommended developing a new green iron PTI that is stackable with the hydrogen PTI to further encourage investment in one of Australia's most promising decarbonisation initiatives."
