Australian Federal Budget 2024

22 May 2024 | News

In Australia, the Treasurer delivered the Federal Budget on Tuesday 14 May 2024.

The Budget centred on providing cost-of-living relief and investing in the Future Made in Australia Act to support medium-term economic growth.

The Government unveiled plans to spend $22.7 billion over the next decade on initiatives like:

Production tax incentives to encourage the supply of hydrogen and critical minerals

Government support for domestic manufacturing of solar panels

Investment in PsiQuantum – an Australian-founded quantum computing company

Funds to support battery production and unlock renewable energy capacity

Making Australia a renewable energy superpower:

Powering Australia with cheaper, cleaner, more reliable energy

Australia’s potential to produce abundant renewable energy is a powerful source of comparative advantage. To realise this, the Government is unlocking more than $65 billion of investment in renewable capacity through the Capacity Investment Scheme by 2030.

This Budget helps Australians benefit from cheaper, cleaner energy sooner by investing $27.7 million to integrate consumer energy resources like batteries and solar into the grid.

The New Vehicle Efficiency Standard will save Australians around $95 billion at the bowser by 2050 and reduce transport emissions.

Unlocking investment in net zero industries and jobs

This Budget accelerates growth of new industries by establishing the $1.7 billion Future Made in Australia Innovation Fund and delivering a 10‑year extension of funding to the Australian Renewable Energy Agency. It also delivers the $44.4 million Energy Industry Jobs Plan and $134.2 million for skills and employment support in key regions.

The Future Made in Australia package establishes time‑limited incentives to invest in new industries. The Hydrogen Production Tax Incentive will make Australia’s pipeline of hydrogen projects commercial sooner, at an estimated cost of $6.7 billion over the decade. This Budget also expands the Hydrogen Headstart program by $1.3 billion.

Boosting demand for Australia’s green exports

The Government is making it easier for businesses and trading partners to source low‑emissions products by building better markets and product standards for green products.

This Budget provides $32.2 million to fast‑track the initial phase of the Guarantee of Origin scheme, focused on renewable hydrogen, and bring forward the expansion of the scheme to accredit the emissions content of green metals and low‑carbon liquid fuels. The Government is also working closely with trading partners to identify opportunities to drive greater supply chain transparency and better market recognition of high environmental, social and governance standards in the critical minerals sector.

Realising the opportunities of the net zero transformation

Australia is committed to reaching net zero greenhouse gas emissions by 2050 and is developing six sector plans covering:

  • electricity and energy
  • transport
  • industry
  • resources
  • agriculture and land
  • the built environment.

This Budget continues investment in effective emissions abatement, including through $63.8 million to support emissions reduction efforts in the agriculture and land sector.

The Government is also investing $399 million to establish the Net Zero Economy Authority and support the economy‑wide net zero transformation.

This Budget also invests an additional $48 million in reforms to the Australian Carbon Credit Unit scheme and $20.7 million to improve community engagement.

Hydrogen Production Tax Incentive

The Government will establish 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.

It will be available for hydrogen production for a maximum of 10 years, between 1 July 2027 and 30 June 2040 for projects that reach final investment decisions by 2030.

The incentive amount will be informed by consultation prior to implementation.