Incentive for critical minerals production and processing in Australia

Australia has established the Critical Minerals Production Tax Incentive (CMPTI) through the Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024. This initiative includes a Hydrogen Production Tax Incentive worth $2 per kilogram and a Critical Minerals Production Tax Incentive worth 10% of eligible processing and refining costs for 31 critical minerals. The CMPTI is designed to foster investment in Australia’s critical minerals processing sector from July 1, 2027, to June 30, 2040, with eligible facilities able to claim benefits for up to 10 years.