Future Made in Australia Act 2025

Country / jurisdiction: Australia · Year: 2025 · Status: In force · Level: National · Type: Voluntary

Assented to on February 14, 2025, the Future Made in Australia (Production Tax Credit and Other Measures) Act 2025 introduced tax incentives for renewable hydrogen and critical minerals production, aiming to position Australia as a key player in the global net zero transformation. The legislation recognises that renewable hydrogen and critical minerals are essential components of the clean energy transition, particularly in the manufacturing of wind turbines, solar panels, and electric vehicles.

The Act established two primary tax incentives spanning from 2027-28 to 2039-40. The first provides AUD 2 per kilogram for renewable hydrogen production, whilst the second offers a 10 per cent tax incentive on processing and refining costs for 31 designated critical minerals. Both incentives are available for up to 10 years per project. The programme includes mandatory compliance with six Community Benefit Principles, which will be detailed in rules set by the Treasurer following further consultation. Importantly, the incentives are structured as production-based benefits, meaning they only activate once projects are operational and actively producing.

This initiative aims to unlock private sector investment in Australia’s renewable energy and critical minerals sectors, creating secure employment opportunities nationwide. By linking the incentives to actual production and community benefits, the programme seeks to ensure that the economic advantages flow through to local workers, industries, and communities.

Official source: https://www.legislation.gov.au/C2025A00009/asmade/text