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Home Home - Hydrogen
Green Hydrogen

Australia Approves $13.7B Tax Breaks to Boost Green Hydrogen and Critical Minerals Production

Anela DoksoBy Anela Dokso11/02/20252 Mins Read
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Australia’s Senate has passed Labor’s significant tax break plan worth $13.7 billion aiming to boost the production of green hydrogen and critical minerals like lithium and nickel.

This move is designed to bolster emerging green industries in Australia while reducing reliance on China’s supply chain for such minerals. The new tax initiative offers a 10% concession on processing and refining these minerals from 2027 to 2040 along with a $2 per kilogram incentive for green hydrogen production.

Although the Coalition opposed this bill, labeling it as a benefit mainly for the wealthy, it received support from the Greens and crossbenchers. The Greens successfully added an amendment preventing the allocation of funds for uranium mining. Passing the Senate was crucial for Labor ahead of the elections, especially for campaigning in mineral-rich regions like Western Australia and Queensland.

Treasurer Jim Chalmers and team emphasize that this bill is critical for Australia to grasp key economic and industrial opportunities during the global shift towards net-zero emissions. The tax breaks are part of a broader strategy unveiled in the 2024 federal budget.


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