The Australian Senate has passed the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024, a move hailed by the industry as a major boost for jobs, manufacturing, and economic growth.
The bill introduces refundable tax credits for the onshore production of green hydrogen and the processing of critical minerals, positioning Australia as a stronger investment destination for clean fuels, low-emissions metals, and critical minerals.
Our Future Made in Australia plan is all about Australian workers and Australian companies making things here.
Because good jobs and fair wages depend on successful businesses.
Just like the governments of John Curtin and Ben Chifley after WWII, Australia has a choice today.… pic.twitter.com/OT8qtf0hOS
— Anthony Albanese (@AlboMP) February 10, 2025
Prime Minister Anthony Albanese said the bill is part of a broader strategy to strengthen Australia’s industrial base and keep jobs onshore.
A warm reception
The Australian Pipelines and Gas Association (APGA) welcomed the decision, calling it a step forward to support the decarbonisation of gaseous fuels.
APGA CEO Steve Davies said the knowledge gained from existing, and under construction projects in Victoria, SA, WA, NSW and Queensland will be vital in lowering costs, improving efficiency, and ensuring hydrogen can be deployed in a way that benefits Australian households, businesses, and industry alike.
“We’re seeing steady progress in smaller projects, which play a vital role in transitioning from natural gas today to an increasingly renewable gas future, ensuring reliability while reducing emissions,” he said.
The Clean Energy Council also welcomed the bill, stating that the legislation could unlock billions in private investment, create thousands of jobs, and drive industrial expansion.
Anna Freeman, General Manager of the Clean Energy Council, said Australia has the natural advantages of renewable energy and mineral resources to position itself as a leader in the emerging global industries of green metals and clean fuels.
“These production credits will now help to boost our competitive advantage for the private capital we need to attract,” Freeman said.
“There are many ‘hard-to-abate’ industries – like iron and steel making, shipping and aviation – whose most promising prospects for decarbonisation depend on the availability of competitively priced hydrogen.
“It is far cheaper to make these clean commodities where you make the hydrogen, and so this production credit will open up a wide range of new industrial expansion opportunities and help our existing industries to remain competitive as they decarbonise.
“They will also support the decarbonisation of industries like steelmaking, shipping, and aviation by making clean hydrogen more accessible.”
The tax credits will only be available to businesses that invest in and produce renewable hydrogen within Australia, ensuring direct economic benefits.
Subscribe to The Australian Pipeliner for the latest project and industry news.