New production tax incentives have been passed in Federal Parliament in an attempt to boost the local green energy economy.
Federal Resources Minister Madeleine King said tax incentives for hydrogen and critical minerals production would encourage industry to maximise opportunities in the global net zero transformation.
Minister King said the Future Made in Australia (Production Tax Credit and Other Measures) Bill established 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.
She said a Critical Minerals Production Tax Incentive would be worth 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, for up to 10 years per project.
“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.”
Minister King said critical minerals were also vital to the defence industry and were needed for the construction of submarines and aircraft.
“We recognise that the best opportunities for Australia and its people lie at the intersection of industry, energy, resources, skills and our ability to attract and deploy investment.
“This is all about building Australia’s future: seizing the vast economic and industrial opportunities from the global net zero transformation and strengthening our economic resilience.”
