The Federal Government’s Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 has passed in the Senate, positioning Australia to become a global decarbonisation leader.
Originally announced in April, the Future Made in Australia Act is essentially Australia’s response to the US’ Inflation Reduction Act (IRA), which is considered to be the largest climate investment in US history.
The legislation encourages innovation by giving firms various demand- and supply-side incentives to invest in developing and deploying clean energy technologies, while helping the country transition to net-zero. It also includes a $US30 billion advanced manufacturing production tax credit (AMPTC) that subsidises the downstream processing of critical minerals.
The ‘Future Made in Australia’ plan is about attracting and enabling investment, making Australia a renewable energy superpower, value adding to Australia’s resources and strengthening economic security, backing Australian ideas in areas such as innovation, digital, science, and investing in people and places.
Now that the legislation has passed in the Senate, $22.7 billion will be invested in key areas, including:
- skills and training to build Australia’s future workforce
- renewable energy
- supporting investment in Australia
- utilising natural resources and critical minerals
- industrial innovation and technology.
Federal Resources Minister Madeleine King previously said the Federal Government put the resources industry at the heart of the Future Made in Australia Act policy making because it knows a strong resources sector means a strong Australia.
King reiterated those sentiments on November 28.
“This is all about helping make our workers and communities the big beneficiaries of the global shift to net-zero,” King said.
“It embeds into law a disciplined and rigorous approach that will govern Future Made in Australia investments, to make the most of our net-zero potential and ensure the benefits of these investments are widely shared and flow to local communities.”
The legislation includes the Federal Government’s National Interest Framework, which guides the identification of priority industries and prudent investments in the national interest. Priority industries will be identified under two streams: net-zero transformation and economic security and resilience.
The Future Made in Australia Act also reintroduces guaranteed statutory funding for the Australian Renewable Energy Agency.
“The next stage of the legislative package, including production tax incentives for critical minerals and hydrogen, has also passed the House (of Representatives on November 28),” King said.
“The (Federal) Government recognises that the best opportunities for Australians lie at the intersection of industry, energy, resources, skills and our ability to attract and deploy investment.
“We recognise that to seize those opportunities we need to engage and invest not protect and retreat. That’s why our Future Made in Australia agenda is an investment strategy and a growth strategy.
“We are providing investors with the clarity, certainty and the cooperation they need to build and grow new industries in Australia, and making sure those benefits flow to communities all over the country.”
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