The Critical Minerals Production Tax Incentive (CMPTI) is set to support Australia’s efforts to produce and process more of the minerals needed for global net zero transformation.
The Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 passed through the Parliament on 11 February 2025.
The bill establishes 2 tax incentives:
- a Hydrogen Production Tax Incentive worth $2 per kilogram of renewable hydrogen produced
- a Critical Minerals Production Tax Incentive worth 10% of eligible processing and refining costs for Australia’s 31 critical minerals.
The CMPTI is set to encourage investment in Australia’s critical minerals processing sector.
This has the potential to help build diverse and resilient global supply chains and to capture more of the value of our resources.
The incentive will be available for production occurring between 1 July 2027 and 30 June 2040. Eligible facilities will be able to claim it for up to 10 years.
