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Critical Minerals and Hydrogen Production Tax Incentives

The Government announced a Critical Minerals Tax Incentive and a Hydrogen Production Tax Incentive.

Last updated 12 March 2025

As part of the 2024–25 Budget, the Government announced changes to accelerate investment in Future Made in Australia priority industries. The changes included providing a Critical Minerals Production Tax Incentive and a Hydrogen Production Tax Incentive from 1 July 2027.

Critical Minerals Production Tax Incentive

From 1 July 2027, the Government has established a temporary Critical Minerals Production Tax Incentive.

The incentive will provide eligible recipients with a time-limited and uncapped refundable tax offset of 10% for the costs of processing the 31 critical minerals currently listed in Australia. The credit will be available for a maximum of 10 years between 1 July 2027 and 30 June 2040.

This measure is now law.

Hydrogen Production Tax Incentive

The Government has established a temporary Hydrogen Production Tax Incentive to incentivise renewable hydrogen production for eligible Australian resident corporations with a time-limited and uncapped refundable tax offset.

The incentive will provide a $2 incentive per kilogram of renewable hydrogen produced for up to ten years, between 1 July 2027 and 30 June 2040 for projects that reach final investment decisions by 2030.

This measure is now law.

For further information and eligibility, see Critical Minerals Production Tax Incentive and Hydrogen Production Tax Incentive.

For more information see:

 

QC102084