On Nov. 25, AST PRL issued bill on production tax incentive schemes.
AST PRL introduced Future made in Australia (production tax credits and other measures) bill 2024, and published an explanatory statement to explain the bill.
It partially implements Future made in Australia - making Australia a renewable energy superpower, attracting investment in key industries’ measures in 2024-2025 budget.
AST GVT published second reading speech of the bill and explained the tax incentives.
Meanwhile, AST DCCEEW summarized the hydrogen production tax incentive (HPTI).
The HPTI will be delivered through Australia’s tax system as a refundable tax offset.
It is called the hydrogen production tax offset, which is available at a rate of AUD 2 for a kilogram of eligible hydrogen for companies that satisfy the eligibility requirements.
The HPTI applies to hydrogen produced between Jul. 1, 2027 and Jun. 30, 2040.
Minerals Production Tax Incentive
Establishes a critical minerals production tax incentive (CMPTI) in the form of a new refundable tax offset, CMPTI tax offset, to support the processing of critical minerals.
Worth 10% of relevant processing, refining costs for Australia’s 31 critical minerals.
The CMPTI applies to expenditure incurred between Jul. 1, 2027 and Jun. 30, 2040.
Indigenous Business Australia
The bill also makes amendments relating to Indigenous Business Australia (IBA).
It gives IBA the power to borrow for a purpose in connection with their functions if the borrowing is authorized under the Public governance, performance and accountability act 2013 (PGPA act) or under rules agreed to by the Minister for Finance.
Next Steps
The bill, which is at second reading stage, will follow the required legislative process.
Nov. 28, 2024 AST NSW FT Comments
On Nov. 28, 2024, AST NSW FT congratulated the government on the passage of the Future made in Australia legislation (see #218242) and the introduction of production tax credit support for critical minerals mining across Australia, as provided by the bill.
On the same day, AST PRL said the Senate has referred the bill above to the Senate Economics Legislation Committee for inquiry and report by Jan. 30, 2025.
The committee welcomes written submissions to inquiry; closing date is Jan. 9, 2025.
Jan. 2025 Report Published
On Jan. 31, 2025, AST PRL, AST GVT said a report on Future made in Australia bill (production tax credits) 2024 by Economics Legislation Committee has been published.
The report outlines the purpose and provisions of the bill, examines stakeholder views on the bill, as well as provides the committee's view and recommendation.
According to the report, the committee recommended that the bill should be passed.
Feb. 12, 2025 Bill Passed Senate
On Feb. 12, 2025, AST DCCEEW said the Australia (production tax credits and other measures) bill 2024 passed the Senate, as amended by the Senate, on Feb. 11, 2025.
Commencement is per table in section 2, and is in part interdependent with other acts; ss 1-3, and anything else in act not covered by the table, commence on Royal Assent.
Part 1 (main amendments) of schedule 1 on the hydrogen production tax incentive commence on later of the first Jan. 1, Apr. 1, Jul. 1, or Oct. 1 to occur after the below.
Namely, day of Royal Assent and the first Jan. 1, Apr. 1, Jul. 1, or Oct. 1 to occur after the day Future made in Australia (guarantee of origin) act 2024 commences #225847.
Part 2 along with part 3 of schedule 1 include similar interdependent commencement provisions; schedule 2 on critical minerals production tax incentive commences on the first Jan. 1, Apr. 1, Jul. 1, or alternatively Oct. 1 to occur after the day of Royal Assent.
Schedule 3 amendments with respect to IBA commence the day after Royal Assent.
Feb. 14, 2025 AST DISR Comments
On Feb. 14, 2025, AST DISR said the above bill passed the AST PRL on Feb. 11, 2025.
