The Senate has passed the Federal Government’s Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024. This legislation implements production tax incentives for renewable hydrogen and critical minerals.
The incentives are:
- 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.
- Critical Minerals Production Tax Incentive worth 10% 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.
It is intended that the incentives are to support Australia’s efforts to decarbonise industries, and produce and process more of the minerals needed for the energy transition.
