Australia: Consultation on draft legislation on grid matching requirements for hydrogen producer tax incentive; private capital program guidance
Consultation closes June 25, 2026.
Treasury released for consultation an exposure draft instrument prescribing the grid matching requirements for hydrogen producers who want to claim the hydrogen production tax incentive (HPTI). The requirements are intended to match renewable hydrogen produced using renewable electricity to the same electrical grid as the hydrogen production facility so as not to create additional demand for non-renewable electricity elsewhere in Australia. The consultation closes June 25, 2026.
In addition, the Australian Taxation Office (ATO) published new guidance on its private capital program, which “seeks to give the community confidence that private capital investors owning Australian assets are paying the right amount of tax.” The guidance sets out the administrator's approach to investments involving private capital (including the behaviors and characteristics that may attract its attention), and the areas of focus related to private capital investments, which include:
- Private equity
- Foreign funds
- Collective investment vehicles
- Infrastructure and business fragmentation, including stapled structures