‘A future made in Australia’: Albanese gov earmarks $4.4bn for hydrogen tax credits

The Australian Federal Budget has earmarked AUD $22.7bn ($15bn) over the next 10 years to support domestic manufacturing, with green hydrogen producers offered an AUD $6.7bn ($4.4bn) tax credit scheme.

Designed as an answer the US’ Inflation Reduction Act (IRA), the Hydrogen Production Tax Incentive will see AUD $6.7bn offered in tax credits to hydrogen producers as AUD $2 ($1.32) per kg. This is expected to be introduced from 2027 to 2028.

In addition, a further AUD $1.3bn ($859m) has been added to allow for another round of the Hydrogen Headstart programme, designed to support “early movers to invest in the industry’s development.”

Under the “Future Made in Australia” package, AUD $1.7bn ($1.1bn) will be provided to promote Net Zero innovation, such as green metals and low carbon fuels, and AUD $32.2m ($21m) to fast-track the initial phase of the Guarantee of Origin scheme, focused on renewable hydrogen.

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