The Future Made in Australia is the Government’s plan for a net zero economy. The Hydrogen Production Tax Incentive and the Critical Minerals Tax Incentive form part of that plan. The Senate Economics Legislation Committee is due to report on the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 enacting the incentives on 30 Jan 2025. These incentives seem a long way off with a start date of 1 July 2027.
The hydrogen production tax offset is a new offset that provides a refundable tax offset available at a rate of $2 for a kilogram of eligible hydrogen for companies satisfy the eligibility requirements. It is intended to be available for income years commencing on or after 1 July 2027 and ending before 1 July 2040.
The Critical Minerals Production Tax Incentive is another new tax offset focused on minerals that are, “essential to modern technologies, economies and national security.” There are currently 31 of these minerals on the government’s list. The amount of the offset for an eligible company is equal to 10% of the eligible expenditure of the company and is intended to be available for income years that start on or after 1 July 2027, and end on or before 30 June 2040.