Bill
Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024
passed, as at 2025-02-14. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2024-11-25
- second reading — 2024-11-25
- second reading — 2024-11-27
- second reading — 2024-11-28
- second reading — 2024-11-28
- third reading — 2024-11-28
- introduced — 2025-02-04
- second reading — 2025-02-04
- second reading — 2025-02-05
- second reading — 2025-02-06
- second reading — 2025-02-10
- second reading — 2025-02-10
- committee — 2025-02-10
- third reading — 2025-02-10
- other — 2025-02-11
- other — 2025-02-11
- passed — 2025-02-11
- royal assent — 2025-02-14
Divisions
- The majority voted in favour of a motion: > *That the debate be adjourned and the resumption of the debate made an order of the day for a later hour this day.* — 2024-11-28, House of Representatives: affirmative, ayes 73, noes 62
- Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 - Second Reading - Put the question — 2024-11-28, House of Representatives: affirmative, ayes 75, noes 59
- The majority voted in favour of a motion to read the bill for a second time. This is parliamentary jargon for agreeing with the main idea of the bill. Because this division was successful, our MPs can now discuss the bill in more detail. ### What does this bill do? According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2425/25bd046) (which is a document prepared by the parliamentary library): * *The Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 (the Bill) introduces the Hydrogen Production tax offset (HPTO) and the Critical Minerals Production Tax Incentive tax offset (CMPTI tax offset) to incentivise hydrogen and critical minerals production by companies that satisfy specific conditions.* * *The HPTO is $2 per kilogram of hydrogen produced, and the CMPTI tax offset is 10% of eligible expenditure incurred through the production of specified critical minerals. Both incentives will be available from 1 July 2027 until 30 June 2040, but companies are only able to access the incentives for a maximum of 10 years.* * *The Bill also imposes liability for, and requires payment of, the shortfall interest charge where a person has received excess tax offsets including, but not limited to, the HPTO and the CMPTI tax offset.* * *Additionally, the Bill amends the general anti-avoidance rules in Part IVA of the Income Tax Assessment Act 1936 so that the HTPO and the CMPTI tax offset are a ‘tax benefit’ to which Part IVA can apply. This potentially allows those offsets to be cancelled in whole or in part if Part IVA is satisfied.* * *Finally, the Bill introduces changes to Indigenous Business Australia (IBA) by expanding the circumstances in which IBA can borrow money.* * *The Bill has been referred to the Senate Economics Legislation Committee (SELC) for inquiry and report by 30 January 2025. Submissions closed on 9 January 2025.* * *At the time of writing, the Bill had not been considered by the Senate — 2024-11-28, House of Representatives: affirmative, ayes 86, noes 51
- The majority voted in favour of part (b)(i) of a [motion](https://www.openaustralia.org.au/senate/?id=2025-02-10.114.2), which means it succeeded. ### Motion text > *That today:* > > *(b) the questions on all remaining stages of the following bills be put as follows:* > >> *(i) [Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7297) at 8 pm, and ...* — 2025-02-10, Senate: affirmative, ayes 34, noes 27
- The majority voted against an [amendment](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/display.w3p;query=Id%3A%22legislation%2Famend%2Fr7297_amend_7fdfc065-55d0-41de-8cc1-66e5399c0341%22;rec=0) to the usual second reading motion, which is "*that the bill be read a second time*" (parliamentary jargon for agreeing with the main idea of the bill). It was introduced by West Australian Senator [Dorinda Cox](https://theyvoteforyou.org.au/people/senate/wa/dorinda_cox) (Greens). ### Amendment text > *At the end of the motion, add “, but the Senate:* > > *(a) notes the importance of benefit sharing and community consultation requirements for resources industries, including adherence to the United Nations Declaration of the Rights of Indigenous Peoples, and the principle of free, prior and informed consent; and* > > *(b) calls on the Government to:* > >> *(i) establish mandatory consultation processes and benefit sharing agreements for projects operating on First Nations land that receive production tax credits,* >> >> *(ii) ensure the bill’s community benefit rules align with the community benefit principles as stipulated in the Future Made in Australia Act 2024 , with clear transparency, accountability and reporting mechanisms; and* >> >> *(iii) implement a statutory review process to enable assessment and adjustment over the life of these schemes.* — 2025-02-10, Senate: negative, ayes 14, noes 26
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/senate/?gid=2025-02-10.167.1) to read the bill for a second time. This is parliamentary jargon for agreeing with the main idea of the bill. Because this division was successful, our senators can now discuss the bill in more detail. ### What does this bill do? According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2425/25bd046) (which is a document prepared by the parliamentary library): * *The Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 (the Bill) introduces the Hydrogen Production tax offset (HPTO) and the Critical Minerals Production Tax Incentive tax offset (CMPTI tax offset) to incentivise hydrogen and critical minerals production by companies that satisfy specific conditions.* * *The HPTO is $2 per kilogram of hydrogen produced, and the CMPTI tax offset is 10% of eligible expenditure incurred through the production of specified critical minerals. Both incentives will be available from 1 July 2027 until 30 June 2040, but companies are only able to access the incentives for a maximum of 10 years.* * *The Bill also imposes liability for, and requires payment of, the shortfall interest charge where a person has received excess tax offsets including, but not limited to, the HPTO and the CMPTI tax offset.* * *Additionally, the Bill amends the general anti-avoidance rules in Part IVA of the Income Tax Assessment Act 1936 so that the HTPO and the CMPTI tax offset are a ‘tax benefit’ to which Part IVA can apply. This potentially allows those offsets to be cancelled in whole or in part if Part IVA is satisfied.* * *Finally, the Bill introduces changes to Indigenous Business Australia (IBA) by expanding the circumstances in which IBA can borrow money.* * *The Bill has been referred to the Senate Economics Legislation Committee (SELC) for inquiry and report by 30 January 2025. Submissions closed on 9 January 2025.* * * — 2025-02-10, Senate: affirmative, ayes 33, noes 27
- The majority voted against [amendments](https://www.openaustralia.org.au/senate/?id=2025-02-10.176.2) introduced by West Australian Senator [Dean Smith](https://theyvoteforyou.org.au/people/senate/wa/dean_smith) (Liberal), which means they failed. Senator Smith [explained that](https://www.openaustralia.org.au/senate/?id=2025-02-10.176.2): > *The amendment seeks to establish much-needed clarity and structure around the community benefit principles and to mitigate what we argue are very obvious risks—risks that were identified at the Senate committee stage, risks that we believe have not yet been mitigated. This amendment amends the bill to ensure that the community benefit rules made in relation to both the hydrogen production tax offset and the critical minerals tax offset cannot specify (1) that an enterprise agreement within the meaning of the Fair Work Act 2009 must apply to both the employees of the company seeking a tax credit and an employee organisation; (2) that a company seeking a tax credit must establish a reconciliation action plan; (3) that the company must consult on the environmental impact of its activities, unless that consultation is already required by Commonwealth, state or territory law; and (4) that the company must consult with First Nations communities, unless, again, that consultation is already required by Commonwealth, state or territory law. To avoid any doubt, the amendment also provides that a company's share of the production tax credits cannot be reduced where these conditions are not complied with.* ### Amendment text > *(1) Schedule 1, item 3, page 14 (after line 33), after subsection 421-45(1), insert:* > >> *(1A) However, the HPTO community benefit rules must not:* >> >>> *(a) specify the condition that, for a company to be entitled to a * hydrogen production tax offset for the income year:* >>> >>>> *(i) an enterprise agreement (within the meaning of the Fair Work Act 2009 ) must apply to both the employees of the company and an — 2025-02-10, Senate: negative, ayes 28, noes 32
- Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 - in Committee - Excluding uranium — 2025-02-10, Senate: affirmative, ayes 32, noes 28
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/senate/?id=2025-02-10.194.1) that the remaining stages of the bill be agreed to and the bill be now passed. In other words, they voted to read the bill for a third time, which is parliamentary jargon for agreeing with the main idea of the bill. Because this division was successful, the bill will now be sent to the House of Representatives where our MPs will decide on whether they agree with the Senate amendments. ### What does this bill do? According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2425/25bd046) (which is a document prepared by the parliamentary library): * *The Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024 (the Bill) introduces the Hydrogen Production tax offset (HPTO) and the Critical Minerals Production Tax Incentive tax offset (CMPTI tax offset) to incentivise hydrogen and critical minerals production by companies that satisfy specific conditions.* * *The HPTO is $2 per kilogram of hydrogen produced, and the CMPTI tax offset is 10% of eligible expenditure incurred through the production of specified critical minerals. Both incentives will be available from 1 July 2027 until 30 June 2040, but companies are only able to access the incentives for a maximum of 10 years.* * *The Bill also imposes liability for, and requires payment of, the shortfall interest charge where a person has received excess tax offsets including, but not limited to, the HPTO and the CMPTI tax offset.* * *Additionally, the Bill amends the general anti-avoidance rules in Part IVA of the Income Tax Assessment Act 1936 so that the HTPO and the CMPTI tax offset are a ‘tax benefit’ to which Part IVA can apply. This potentially allows those offsets to be cancelled in whole or in part if Part IVA is satisfied.* * *Finally, the Bill introduces changes to Indigenous Business Australia (IBA) by expanding the circumstances in which IBA ca — 2025-02-10, Senate: affirmative, ayes 34, noes 28
Plain-language summary
No machine-written summary in this export.
Sources
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