Clean energy incentives clear last major hurdle

Kat Wong | February 11, 2025

Mining and manufacturing companies could soon receive major tax breaks after a key pillar of Labor’s flagship decarbonisation policy all but passed parliament.

Tax incentives for renewable hydrogen production and critical minerals processing passed the Senate with amendments from the Greens on Monday night after the government struck a deal with the minor party.

Independent crossbenchers like Lidia Thorpe and Fatima Payman also backed the bill, which has been sent back to the lower chamber to be rubber-stamped.

“We know that this is an important reform to provide investment certainty and support for businesses who are going to be at the forefront of the new industries that need to be created as we move towards a renewable energy future,” cabinet minister Katy Gallagher told the Senate on Monday.

The federal government’s broader $22.7 billion Future Made in Australia manufacturing policy – which aims to fund clean energy projects and create jobs for the decarbonisation transition – is a key part of Labor’s election pledge to “build Australia’s future”.

Production tax credits have received support from West Australia’s leaders, the Queensland Resources Council, the Association of Mining and Exploration Companies and more.

The Greens added their support after securing an amendment to prevent incentives being offered for uranium mining.

“Future Made in Australia does have the potential to help us with the climate emergency,” Greens senator Dorinda Cox said.

“I stand here to congratulate the Albanese government today on this work … in fact, we could go further with a Greens minority government in the 48th Parliament.”

When the Greens voted with Labor to extend Senate hours so they could vote on the bill, the coalition – who opposed the legislation – accused the government of doing a “dirty deal” with the minor party.

“This is a bill that deals directly with the backbone of the economy,” leader of the opposition in the Senate Michaelia Cash said.

“If you think you are doing it tough now, God help Australians if the Greens get what they want and Mr Albanese is governing with them.”