The Net Zero Economy Authority welcomes the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 passed by the Australian Senate this week.
The Bill establishes the Hydrogen and Critical Minerals Production Tax Incentives and is expected to re-energise many regions of Australia.
The Net Zero Economy Authority's primary role is to support the regions, workers, and communities most affected by Australia’s shift to a net zero emissions economy.
The incentives will support Australia’s efforts to decarbonise its industries and produce and process more of the minerals needed for the energy transition.
The legislation establishes two tax incentives:
- Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced between 2027–2028 and 2039–40 for up to ten years per project.
- Critical Minerals Production Tax Incentive worth ten per cent 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 ten years per project.
Both incentives will be applied once projects are producing hydrogen or processing critical minerals used in products like wind turbines and solar panels.
The legislation has also been welcomed by the Business Council of Australia, The Australian Council of Trade Unions (ACTU) and the Association of Mining and Exploration Companies.
Access the full announcement here: Production tax credits pass the Senate | Ministers for the Department of Industry, Science and Resources(Opens in a new tab/window)
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