'All about jobs': minister spruiks net zero tax breaks

Madeleine King has urged the opposition and others to support tax incentives for net zero industries (Mick Tsikas/AAP PHOTOS)

Failing to secure production tax credits for critical minerals and renewable hydrogen will be a blow to industry and jobs, the federal resources minister has posited in a bid to drum up political support for the key Labor policy.

Madeleine King urged the federal opposition, Greens and crossbench senators to support the tax incentives for net zero industries, arguing the plan had "many friends in industry".

"If (Opposition Leader) Peter Dutton and the coalition choose not to support the resources sector, well, people should know about that, because it's all about Australian jobs in the face of the need internationally to secure supply chains," she told ABC radio on Monday,

"If Peter Dutton and the coalition want to vote against that? Well, I guess we leave it up to them."

BHP RIO TINTO BLUESCOPE PORT KEMBLA
The production tax credits are the centrepiece of Labor's broader Future Made in Australia package.

In his budget reply speech, the opposition leader dubbed the proposal "corporate welfare for billionaires".

Legislation for production tax credits totalling $13.7 billion is expected to be introduced to parliament on Monday. 

The production tax credits are the centrepiece of Labor's broader Future Made in Australia package aimed at securing the nation's place in the global net zero supply chain.

The production incentive for critical minerals and rare earths would refund 10 per cent of the processing and refining costs between 2027/28 and 2039/40, for up to 10 years per project.

Tax credits of $2 per kilogram would be made available for production of renewable hydrogen between 2027/2028 and 2039/40, for up to ten years per project.

The Chamber of Minerals and Energy of Western Australia chief executive Rebecca Tomkinson wants the government incentives to go ahead, arguing they would "level the playing field in what is an intensely competitive global market".

"Australia’s resources, including our critical minerals, have a key role to play in the energy transition," she said.

Clean Energy Council decarbonisation policy director Anna Freeman said key to the policy design was incentives only going to businesses once they actually produced hydrogen and critical minerals. 

“Other major markets, including the United States and Canada, are providing generous support to hydrogen production and Australia too needs to create attractive investment conditions if we are to attract the tens of billions of dollars of new private investment waiting in the wings," she said.

The slogan ‘Zero CO2 Emissions’
Stakeholders say Australia’s resources have a key role to play in the energy transition.

Superpower Institute chief executive Baethan Mullen said in the absence of a price on carbon, hydrogen production credits would not act as a subsidy.

"They instead represent sound economics by levelling the playing field between green products that do not damage the environment, and products produced with fossil fuel which do," he said.

The institute wants Australia to leverage its vast renewables energy resources to become a net zero superpower exporting green iron and other energy-intensive goods to the world. 

“Australia has likely the best combination of solar, wind and biomass resources in the world and so has an obligation as well as an opportunity to produce goods that can reduce world emissions by up to 10 per cent," Mr Mullen said. 

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store