‘Future Made in Australia’ Legislation Introduced
Core elements of ‘Future Made in Australia’ plan introduced
The Australian Government has introduced the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024. The proposed legislation will, amongst other things, establish production tax incentives for renewable hydrogen and critical minerals. The incentives designed to position Australia as a critical part of the global net zero transformation.
SNAPSHOT
Incentives for renewable hydrogen and critical minerals for growing companies in Australia.
Incentives include a refundable tax offset.
A key priority of the Bill is ensuring the benefits from investment flow to local workers, industries and communities around Australia.
NEW PROGRAMS
The legislation establishes the following two tax incentives:
The Hydrogen Production Tax Incentive (HPTI), a refundable tax offset of $2 per kilogram of renewable hydrogen.
The Critical Minerals Production Tax Incentive (CMPTI), a refundable tax offset equivalent to 10 per cent of the non-excluded costs of carrying on the registered processing activities for the production of critical minerals.
ELIGIBILITY REQUIREMENTS
The HPTI will apply to eligible hydrogen produced in income years starting on or after 1 July 2027 and before 1 July 2040 by companies that satisfy the eligibility requirements including issuing the PGO certificate for the hydrogen as the holder of the production profile under which the hydrogen was produced in Australia.
The CMPTI offset will apply in respect of eligible CMPTI processing activities for income years that start on or after 1 July 2027 and that end on or before 30 June 2040 by constitutional corporations that satisfy eligibility requirements including comply with the rules implementing the community benefit principles for the CMPTI made by the Treasurer. The company must satisfy residency requirements.
CONNECT WITH THE HICKEY’S INCENTIVES TEAM
The Hickey & Associates Australia incentives team has advised companies navigating the dynamic landscape. Contact us for more specifics, including eligibility criteria, application details, and funding requirements. If you’d like our support throughout the application process, we are here to help!