Australian Government Unveils Tax Incentives for Hydrogen and Critical Minerals

The bill offers a $2 tax credit for every kilogram of hydrogen produced.

A drone picture shows a residential rooftop solar unit on a house in Canberra, Australia, on March 3, 2023. AAP Image/Lukas Coch

The Albanese Labor government has introduced a new bill to incentivise hydrogen and critical minerals development in Australia.

The Future Made in Australia (Production Tax Credit and Other Measures) Bill includes a Hydrogen Production Tax Incentive worth $2 for every kilogram of hydrogen produced between 2027–28 and 2039–40, applicable for up to 10 years per project.