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Australia: Hydrogen, critical minerals production tax incentives to commence April 1, 2025

Incentives under Future Made in Australia (Production Tax Credits and Other Measures) Act 2025 will commence on April1, 2025.

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March 26, 2025

Introduction of the hydrogen production tax incentive (HPTI) and the critical minerals production tax incentive (CMPTI) under the Future Made in Australia (Production Tax Credits and Other Measures) Act 2025, which was passed on February 11, 2025 (read TaxNewsFlash), will commence on April 1, 2025.

Both new incentives are governed by a dual regulator model similar that of the R&D Tax Incentive (R&DTI).

Notably, the Act also extended the imposition of shortfall interest charges (SIC) to circumstances when a tax offset claimed by an entity (including refundable tax offsets) is subsequently reduced.


For more information, contact a tax professional with the KPMG member firm in Australia:

Georgia King-Siem | gkingsiem@kpmg.com.au

Sophie Turski | sturski@kpmg.com.au

Melissa Bader | melissabader@kpmg.com.au

Daniel McLindon | melissabader@kpmg.com.au

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