In a significant move to boost the country’s resources sector, the Australian Parliament has passed the Australian government’s Critical Minerals Production Tax Incentive legislation.
This new law aims to increase the production and processing of minerals crucial for the global energy transition within Australia.
Federal Resources Minister Madeleine King hailed the legislation as a “game changer” for the sector.
“This is a historic moment for the resources industry and a big deal for resource states like Western Australia and Queensland,” Minister King stated.
She emphasised that the initiative would create jobs and diversify global supply chains by encouraging more mineral processing on Australian soil.
The Critical Minerals Production Tax Incentives will offer a refundable tax credit of 10 per cent on eligible costs associated with the production of critical minerals and rare earths.
Valued at $7 billion over a decade, the incentive will be available for up to 10 years per project, covering production between July 1, 2027, and June 30, 2040.
Critical minerals and rare earths play a vital role in manufacturing solar panels, batteries, and other technologies essential for reducing carbon emissions.
They are also crucial for the defence industry, particularly in the construction of submarines and aircraft.
Despite widespread support from industry groups and critical minerals companies, the legislation faced opposition from the Coalition.
Minister King criticised this stance, accusing Opposition Leader Peter Dutton of prioritising politics over the resources industry and national security.
The passing of this legislation marks one of the largest support packages for the resources sector in Federal Parliament history, positioning Australia to strengthen its role in the global supply chain for materials critical to the clean energy transition and national defence.
