Australia to challenge Inflation Reduction Act

The Introduction of the Future Made in Australia Act

Amid calls from industry bodies, the Federal Government has unveiled a groundbreaking policy to match the US Government’s Inflation Reduction Act.

Prime Minister’s Vision

Prime Minister Anthony Albanese introduced the Future Made in Australia Act, emphasizing the necessity of developing local clean energy and manufacturing capabilities.

In a speech at the Queensland Media Club, Albanese highlighted the government’s commitment to proactive participation, partnership, and investment in key areas.

Government Principles

The Prime Minister outlined three guiding principles for the initiative: acting and investing at scale, capitalizing on national strengths, and enhancing economic foundations.

Investment in Manufacturing

Albanese stressed the importance of investing in critical manufacturing sectors to enhance local production and drive economic growth through infrastructure and clean energy development.

Future Plans

Details about the Future Made in Australia Act are expected to be disclosed in the upcoming Federal Budget announcement.

Supporting Initiatives

The Inflation Reduction Act includes a significant tax credit for advanced manufacturing, aligning with industry recommendations for tax incentives in the mining sector to boost global competitiveness.

Industry support for the proposed Production Tax Credit (PTC) and the government’s recognition of its role in fostering innovation have been well-received.

Industry Endorsement

AMEC CEO Warren Pearce commended the government’s initiative, noting the PTC’s potential to drive investments in new industries and enhance Australia’s global competitiveness.