The 2024-25 Federal Budget included significant new measures aimed at strengthening the mining and resources sector with plans to invest $8.8 billion in the sector over the next decade.
A key component of this Budget is the establishment of a production tax incentive for processing and refining critical minerals, with an allocated budget of $7 billion over the next ten years. This initiative is designed to encourage investment in domestic processing and refining capacities, thereby securing a more stable and prosperous future for the industry. Furthermore, the Budget allocates up to $1.2 billion in funding for strategic critical minerals projects through both the Critical Minerals Facility and the Northern Australia Infrastructure Facility, along with pre-feasibility studies for common user precincts.
Additionally, the Government will be supporting Geoscience Australia with $566.1 million to extensively map Australia’s critical minerals, strategic materials and other essential resources. This is a pivotal step towards enhancing our geological understanding and ensuring the sustained growth of the sector.
From a broader perspective, the Government’s commitment of $1.5 billion to manufacturing clean energy technologies illustrates a clear direction towards supporting sustainable practices within the mining and resources industry. Initiatives like the Solar Sunshot program and the Battery Breakthrough Initiative will undoubtedly complement the sector’s growth by integrating cutting-edge technologies that are essential for the transition to net zero.
For businesses in the mining and resources sector, these initiatives represent a substantial opportunity. The enhanced support for infrastructure development, coupled with incentives for refining and processing within Australia, provides a favourable environment for growth and investment. The strategic focus on critical minerals not only aligns with global trends towards cleaner technologies and energy but also positions Australian companies at the forefront of this transition.
Next steps
We encourage our clients and contacts to consider how these changes can be integrated into their strategic planning. Your HLB Mann Judd advisers will continue to monitor these new measures and how you may make the most out of the opportunities they present.