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Production Tax Incentive

Following intense AMEC advocacy over the last year, the Commonwealth Government announced in the Federal Budget a $7B Critical Minerals Production Tax Incentive to drive downstream investment in Australian critical minerals processing.  Building off the AMEC PTC Report drafted by Mandala Consulting, a Production Tax Incentive will provide a 10 per cent tax credit to companies undertaking downstream processing that value-adds to raw minerals. AMEC members identified a tax credit as an important lever to encourage action. From a policy perspective, this incentive is a zero-risk approach for Australia to take. If companies do not produce a value-added product, they will not be eligible to receive a tax credit. This means that, unlike grants programmes, money is only spent when the sought after outcome is achieved.

The Critical Minerals Production Tax Incentive (CMPTI) is the cornerstone of the ‘Future Made in Australia’ strategy, and is Australia’s response to the international influx of massive market interventions seeking to secure downstream processing overseas. The CMPTI is one part of a broader advocacy strategy to make Australia competitive to keep more mineral processing in Australia.

AMEC’s advocacy was underpinned by the Mandala report which was taken to Government and the Opposition in November 2023, and then again with a delegation in February 2024. AMEC would like to thank the following companies for providing information and important operational data, that helped form the Report:

AMEC continue to engage with Cabinet, the wider Government, Opposition, Treasury and Departments on the delivery of the CMPTI.  The next steps will be to closely consult with Government on the exact terms and conditions in the legislative framework of how the tax credit will work.

For more see Critical Minerals Production Tax Incentive on AMEC’s website.

The CMPTI is important, but not a silver bullet. AMEC continues to actively work to cut red tape and working with State and Commonwealth Government’s to reduce the administrative burden on mining and mineral exploration companies. So that they can get on the ground quicker, and make the discoveries necessary for companies to need a CMPTI in the future.

 

Nature Positive Reforms

The reform of the Environmental Protection Biodiversity Conservation Act 1999 is an Election commitment by the Federal Government known as the “Nature Positive reforms”. On 16 April, Minister Plibersek announced that the nature positive reforms would be staged rather than entering Parliament in the winter sittings as originally proposed. Consequently, the Commonwealth Government has introduced into Parliament the following legislation:

  1. Nature Positive (Environment Protection Australia) Bill 2024
  1. Nature Positive (Environment Information Australia) Bill 2024
  1. Nature Positive (Environment Law Amendments and Transitional Provisions) Bill 2024

 

The legislation creates commonwealth non-corporate entities – EPA and EIA. Specifically, the CEO of the EPA and the Head of EIA. It confers powers on them and independence as a statutory body that can be guided via a Statement of Expectations.

The amendments and transitional Bill changes 9 pieces of environmental legislation. It is to enable the EPA and EIA. It also increases fines to a maximum of $780M. It is anticipated this legislation will be sent to committee in the Senate.

AMEC has met with the DCCEEW staff to discuss the progress. The Department are expected in Perth for a briefing in July – August. AMEC are seeking this meeting to be conducted among a broad as group as possible, as well as identifying opportunities in other jurisdictions for members to engage in person.

AMEC has also met with the Shadow Environment Minister. The Opposition are interested in feedback, and it is believed that the legislation will be directed to a committee when it enters the Senate.

AMEC hosted an Environmental Legislation Forum on 12 June 2024 to discuss the Nature Positive Reforms, which was attended by over 250 people.

 

Native Title Review and Aboriginal Torres Strait Islander Heritage Protection Act 1984

The Commonwealth Attorney General has issued a Terms of Reference for the Australian Law Reform Commission (ALRC) to inquire into the future acts regime in the Native Title Act 1993 (Cth). This Inquiry forms part of the Government’s commitment in response to the Northern Australian Committee’s Reports into Juukan Gorge. The ALRC will provide its final report to the Attorney-General by 8 December 2025.  Through the AMEC Aboriginal Affairs Committee, a subcommittee will draft a formal submission to Government.

The Aboriginal Torres Strait Islander Heritage Protection Act 1984 (ATSIHP Act) is under review. AMEC will continue to meet with DCCEEW and update members when there is further consultation opportunities.

NEW Website Link for State and Federal Critical Minerals Grants

AMEC is thrilled to share our one stop shop for critical minerals grants and funding opportunities, at both state and federal levels. 

Whether you are involved in the critical minerals space as an explorer, producer or service provider, there are opportunities offered from state and federal governments. AMEC has collated a list of the different funding schemes and support for members.

These opportunities include a range of monetary support such as grants, subsidies, and more, available for individuals involved in critical minerals exploration, production, or related services.

Visit the site here: Funding Opportunities Hub

** We think we’ve captured everything, but if you spot something we’ve missed please let us know so we can add it to the Hub. **