Landmark Tax Credits to Supercharge Green Investment in Australian Industry

As the world accelerates towards net zero, Australia has a critical opportunity to position itself as a leader in clean technology manufacturing, critical minerals processing and green hydrogen production. Australian superannuation funds and institutional investors have already set ambitious targets to deploy billions into climate solutions. With intense international competition, Australia must offer a globally competitive investment environment to secure this capital.

The Future Made in Australia production tax credits will make eligible Australian projects and businesses more attractive for both domestic and international investors. Between 2027 and 2040, $13.7 billion in tax incentives will be allocated towards onshore clean technology manufacturing, critical minerals processing and green hydrogen production.

Under the scheme, companies that pass a national interest test – showing significant contribution to net zero transformation or economic security and resilience – will be eligible for:

• A 10% tax concession to subsidise the costs of processing and refining critical minerals, making Australia a more competitive supplier in the global market.
• A $2 incentive per kilogram for green hydrogen produced, strengthening Australia’s opportunity to become as a global leader.

“With Australia’s steadily improving policy environment, Australian companies and investors are now better positioned to seize the growing global demand for clean energy and low-carbon products,” said Rebecca Mikula-Wright, CEO of IGCC. “These incentives will help unlock billions in private investment, driving job creation and new growth industries, particularly in key regional areas, while ensuring our economy remains competitive in a decarbonising world”.