Bill for $23bn Future Made in Australia plan passes House
The lower house has approved industrial legislation to spur domestic manufacturing and accelerate the net-zero transition.
The government’s ambitious $23 billion Future Made in Australia plan is one step closer to reality after its legislative framework passed the House of Representatives on Monday.
The reform package announced in May’s budget includes a raft of industrial policies aimed at rebuilding the country’s domestic sector, support regional jobs, and speed up the transition to net zero.
Treasurer Jim Chalmers said the bill’s passage was a “major step forward in making the Australian economy more prosperous and resilient”.
“This legislation will allow us to unlock private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well‑paid jobs around the country,” he said.
“Making our future here in Australia is about making the most of our nation’s potential and making sure everyone shares in the benefits.”
The government announced the Future Made in Australia plan in May’s budget, committing $22.7 billion in funding over 10 years.
The package includes $13.7 billion in production tax incentives to encourage business investment in critical minerals and hydrogen.
Details around eligibility and maximum incentives claimable are currently being finalised, with consultation closing in July.
The Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 establishes the national interest framework to “support consideration and decision-making in relation to public investment that facilitates private sector investment in the national interest”.
It also outlines “community benefit principles” that would apply to investment decisions and includes $6 billion in funding for the Australian Renewable Energy Agency.
“The government recognises that the best opportunities for Australians lie at the intersection of industry, energy, resources, skills and our ability to attract and deploy investment,” Chalmers said.
The omnibus bill passed despite criticism over inadequate transparency for businesses and taxpayers.
According to independent Helen Haines, organisations including the Productivity Commission, the Grattan Institute, and the Climate Council of Australia said “the bill contains inadequate transparency measures to ensure Australians know how their money is being spent on Future Made in Australia supports”.
Shadow treasurer Angus Taylor took issue with the “billions of dollars” in planned investment failing to “meet the standards and processes laid out in this bill and the significant integrity concerns around these investments”.
“This policy does not make up for the government’s failures on economic management that are driving up the costs of manufacturing and have caused a tripling of manufacturing insolvencies since June 2022,” his second reading amendment read.
The legislation will now move to the Senate for debate.
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