The hydrogen production tax incentive (HPTI) and critical minerals production tax incentive (CMPTI), introduced under the Future Made in Australia (Production Tax Credits and Other Measures) Act 2025, which was passed on 11 February 2025, will take effect on 1 April 2025.
Both incentives follow a dual regulator model similar to the R&D Tax Incentive (R&DTI).
The CMPTI provides eligible recipients with a refundable tax offset of 10% of the eligible costs of processing certain critical minerals in Australia. The offset will be available between 1 July 2027 and 30 June 2040, for a maximum of 10 years.
In the 2024–25 Budget, the Australian Government announced its Future Made in Australia package. This package supports Australia’s transition to a net zero economy and includes support for investment in critical minerals processing in Australia through the Critical Minerals Production Tax Incentive (CMPTI).
This measure is now law.
Earlier, the Australian Taxation Office (ATO) released guidance on how to claim the Critical Minerals Production Tax Incentive and the Hydrogen Production Tax Incentive on 21 February 2025.
