Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024; Second Reading

Continued the debate

Price opposed the bill, arguing it increased bureaucracy and waste without providing immediate tax relief to businesses. Price claimed the legislation would cost taxpayers billions and impose significant compliance costs, including approximately $100,000 in the first year for businesses to apply for credits. Price criticised the lack of clarity regarding community benefit principles, which she argued gave the Treasurer excessive power to determine eligible sectors. Price warned that the policy risked propping up political favourites and enabling union influence in workplaces, citing concerns from the Productivity Commission and independent economists.

Government response

Ayres supported the bill, describing it as a critical component of the government's strategy to reindustrialise Australia and secure national interests. Ayres argued that the legislation would create blue-collar jobs by incentivising the processing of critical minerals and the production of green hydrogen. Ayres highlighted that the critical minerals tax incentive would cover 10 per cent of processing costs for 31 minerals, while the hydrogen incentive would provide $2 per kilogram of renewable hydrogen produced. Ayres emphasised that community benefit principles ensured regional communities gained from investment and that the scheme relied on payment by results rather than upfront subsidies.

Opposition response

Cash opposed the bill, asserting it added unnecessary red tape and compliance costs to the mining industry without delivering tax relief. Cash argued that the legislation would cost taxpayers billions over decades and potentially allow unions to embed themselves in the sector through community benefit requirements. Cash cited warnings from business groups and the Minerals Council of Australia regarding duplicative administrative burdens and increased project costs. Cash contended that the Greens' support for the bill demonstrated a desire to undermine the mining industry, which she described as the backbone of the Australian economy.