The 2024–25 Federal Budget has officially been announced. Australian Mining investigates what the Budget means for the mining industry.
Renewables
The continued push to reach net-zero by 2050 continues, with the Federal Government set to inject $22.7 billion into its Future Made in Australia initiative across the next 10 years.
The initiative, a precursor to an eventual Future Made in Australia Act, aims to help build a stronger, more diversified and more resilient economy powered by clean energy, while creating secure jobs and delivering benefits to Australian communities.
In an effort to speed up the approval process for renewable projects, the Federal Government will spend approximately $100 million to ensure projects are fast-tracked through a process that has previously taken three years.
Critical minerals
A new Critical Minerals Production Tax Incentive will provide a production incentive valued at 10 per cent of relevant processing and refining costs for Australia’s 31 critical minerals.
The incentive is worth almost $32 billion, with $13.7 billion set aside over the next decade to continue to fund the initiative.
Applicable for up to 10 years per project, the incentive is available for projects in production between 2027–28 and 2039–40 that reach final investment decisions by 2030.
“To support the delivery of the 82 per cent renewable energy target, the Government has formed the National Renewable Energy Supply Chain Action Plan with states and territories which will strengthen supply chains of key inputs required for clean energy,” the Federal Government said.
The Minerals Council of Australia (MCA) has welcomed the news, saying it shows that mining continue to underpin the Australian economy.
“The mining industry contributed over half of all the company tax collected from large companies and continues to play a crucial role in funding the government services we all rely on,” the MCA said.
“These are measures that the MCA has long called for and will increase opportunities for Australian critical minerals development.”
The Budget has also set aside $566 million in funding for Geoscience Australia to enable greater public access to nationally consistent pre-competitive data.
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