Government announces sweeping measures in stimulus package worth more than $15 billion: ‘Golden opportunity’

Australia is poised to become a major player in the clean energy transition thanks to the government’s proposed A$23 billion (over $15 billion) Future Made in Australia package, which includes tax incentives for renewable hydrogen projects.

With a massive stimulus package, the government aims to boost domestic production and accelerate the transition to a pollution-free future. As The Guardian reports, A$13.7 billion (about $9 billion) will go towards subsidies for green hydrogen and the processing of 31 key minerals.

The government will offer a 10% production tax credit to help reduce the cost burden on companies in the critical minerals sector, starting in 2027, according to ABC Australia.

For green hydrogen, the government will provide companies with AU$2 ($1.30) per kilogram of hydrogen for 10 years from the start of production. The only requirement is to have a registered company by 2030.

Additionally, IG Bank said A$1.7 billion (approximately $1.2 billion) would be allocated to an innovation fund. Priority will be given to industries such as ecological metals, batteries and low-emission liquid fuels.

In addition, IG Bank noted, A$134.2 million (about $89.2 million) will go towards employee training programs, and A$519.1 million (about $344.8 million) will go towards a fund for the cause of future drought.

Solar energy is also gaining popularity, with Australia’s Solar Sunshot program planning to invest up to A$1 billion (about $664.2 million) in solar energy production.

According to The Guardian, the funds will be distributed in stages over the next decade to help Australia undergo “the biggest transformation since the industrial revolution”, as Treasurer Jim Chalmers said in his budget speech.

Chalmers called the sweeping measures a “golden opportunity for Australia” but noted the government must strategically decide which projects will receive public investment.

The ambitious stimulus package will help create clean energy jobs and support the Australian economy, contributing to global climate goals and ushering in a healthier and safer future. This is similar to the US Inflation Reduction Act, which provides homeowners with thousands of dollars in tax breaks and credits for installing solar panels and making other energy-saving improvements.

“Australian energy can power it, Australian resources can build it, Australian regions can power it, Australian researchers can shape it and Australian workers can thrive in it,” Chalmers told parliament, according to The Guardian.

“Our A$22.7 billion (approximately $15 billion) Future Made in Australia package will help us become an essential part of the global economy.”

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