Senate passes Labor’s hydrogen and critical mineral production tax breaks – Australia
The news: Labor’s $13.7 billion tax breaks for critical minerals processing and green hydrogen production passed the Senate on Monday night, delivering a much-needed pre-election boost for Anthony Albanese.
The Greens and crossbenchers backed the bill, while the Coalition opposed it, after previously calling it “billions for billionaires.”
The numbers: The scheme includes a 10% tax concession for processing and refining critical minerals like lithium and nickel from 2027 to 2040 and a $2 per kilogram incentive for green hydrogen production over the same period.
The government says the tax breaks will help kickstart emerging green industries and reduce reliance on China’s critical minerals supply chain.
The context: The scheme, announced in the 2024 federal budget, also aims to reduce reliance on China’s minerals supply. Labor is pushing to pass the tax credits before the election and will use them in its election campaign, particularly in Western Australia and Queensland.
The Greens secured an amendment to prevent funding for uranium mining, according to The Guardian.
The bill will return to the lower house for final approval.
What they said: Treasurer Jim Chalmers, Resources Minister Madeleine King, Energy Minister Chris Bowen and Assistant Minister Tim Ayres, in a joint statement said the bill would help Australia seize economic and industrial opportunities in the net zero transition.
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Senate passes Labor’s hydrogen and critical mineral production tax breaks – Australia, source
