On 14 May 2024, as part of the 2024–25 Budget, the Government announced changes to accelerate investment in Future Made in Australia priority industries. These changes are not yet law.
Hydrogen Production Tax Incentive
The Government will establish a temporary Hydrogen Production Tax Incentive to incentivise renewable hydrogen production for eligible Australian resident corporations with a time-limited and uncapped refundable tax offset.
The incentive will provide a $2 incentive per kilogram of renewable hydrogen produced for up to ten years, between 1 July 2027 and 30 June 2040 for projects that reach final investment decisions by 2030.
Critical Minerals Production Tax Incentive
From 1 July 2027, the Government will establish a temporary Critical Minerals Production Tax Incentive.
The incentive will provide eligible recipients with a refundable tax offset of 10% for the costs of processing the 31 critical minerals currently listed in Australia. The credit will be available for a maximum of 10 years between 1 July 2027 and 30 June 2040.
Eligible processing costs will be informed by consultation.
This incentive is consistent with the Government's Critical Minerals Strategy and Renewable Energy Superpower Plan.
For more information see: