Adopts tax incentives for and hydrogen and critical minerals production
11 Feb 2025
On 11 February 2025, the Parliament of Australia passed a law implementîng production tax incentives for renewable hydrogen and critical minerals. The incentives include:
• Hydrogen Production Tax Incentive: A subsidy of $2 per kilogram of renewable hydrogen produced between 2027–28 and 2039–40, available for up to ten years per project.
• Critical Minerals Production Tax Incentive: A benefit equivalent to ten per cent of eligible processing and refining costs for Australia’s 31 critical minerals, applicable to critical minerals processed and refined between 2027–28 and 2039–40, for up to ten years per project.
Nature of measure:
Type:
-
Promotion and facilitation (Investment incentives)
Industry:
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Primary (Mining and quarrying)
-
Manufacturing (Manufacture of chemicals and chemical products)
Inward FDI:
No
Outward FDI:
No
Sources:
