Legislation to provide tax incentives to the hydrogen and critical minerals industries will be introduced into Federal Parliament today.
Federal Resources Minister Madeleine King said the legislation would implement production tax incentives for renewable hydrogen and critical minerals.
Minister King said the Hydrogen Production Tax Incentive would be $2 per kilogram of renewable hydrogen produced between 2027–2028 and 2039–40, while the Critical Minerals Production Tax Incentive would be 10 percent of relevant processing and refining costs for Australia’s 31 critical minerals, for critical minerals processed and refined between 2027–28 and 2039–40.
She said both incentives would be for up to 10 years per project.
“This Bill will help unlock private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well paid jobs around the country.
“Renewable hydrogen and critical minerals are both essential to the world’s path to decarbonisation.”
Minister King said the legislation provided industry the clarity and certainty it needed 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.”
She said recipients of the production tax incentives would also be required to deliver benefits relating to the six Community Benefit Principles included in the overarching Future Made in Australia Bill.
“The specific requirements will be detailed by rules set by the Treasurer, which will be subject to further consultation.”
