Critical Minerals Production Tax Incentive

Policy Engagement Overview

The evidence collected on corporate and industry engagement on the CMPTI consultation paper indicate that while there was general support for the implementation of a critical minerals tax credit, it was largely unclear as to whether respondents were supportive of the energy transition aligned with IPCC recommendations. Of the 8 companies and industry associations included in the analysis, only 2 (25%) communicated explicit support for the transition to clean energy technologies.

5 respondents (62.5%) also provided submissions to the inquiry into the provisions of the Future Made in Australia Production Tax Credit and Other Measures) Bill 2024. All 5 respondents generally supported the CMPTI while maintaining unclear positions on the energy transition in line with IPCC guidance.

Policy Engagement Trends

• Incentives to promote the increased production of minerals for energy transition technologies were widely supported, with Smart Energy Council and Tesla explicitly supporting the transition to clean energy technologies. For example, Tesla emphasized the need to further expand the scope of the operational incentives of the CMPTI to support accelerated renewable capacity.
• All entities from the metals and mining sector were generally supportive of the CMPTI while holding unclear positions on the transition of the energy mix in line with IPCC recommendations, including the Association of Mining and Exploration Companies, the Chamber of Minerals and Energy of Western Australia, and the Minerals Council of Australia.
• A recommendation for the CMPTI to highlight that no fossil fuels should be included in the processing of critical minerals was advocated by the Smart Energy Council.
• An expansion of Australia’s critical minerals list to include additional minerals, including uranium, was advocated by the Australian Chamber of Commerce & Industry.