Albanese's Future Made in Australia Act to include community benefit principles
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The news: Businesses looking to benefit from the billions of dollars in Prime Minister Anthony Albanese's flagship Future Made in Australia Act will have to adhere to five "community benefit principles" as the government prepares to introduce the bill to parliament on Wednesday.
The numbers: The act, which is Albanese's answer to Joe Biden's Inflation Reduction Act, will include $22.7 billion over the next decade in new measures. This includes a $1.7 billion innovation fund to develop emerging industries and $13.7 billion in tax breaks for green hydrogen and processed critical minerals from 2027-28.
The context: To receive funding, projects will need to fall under two categories to qualify for support under the Future Made in Australia banner, as revealed by Albanese in an exclusive interview with Capital Brief published in May.
They need to have a comparative advantage for Australia in the transition to net zero emissions or be a matter of national security or economic resilience. A new National Interest Framework will define the priority industries that fall under these two categories.
The bill will also set out five "community benefit principles" that will be applied, with a requirement that projects:
- Promote safe and secure jobs that are well paid and have good conditions;
- Develop more skilled and inclusive workforces, including by investing in training and skills development and broadening opportunities for workforce participation;
- Engage collaboratively with and achieve positive outcomes for local communities, such as First Nations communities and communities directly affected by the transition to net zero;
- Strengthen domestic industrial capabilities including through stronger local supply chains; and
- Demonstrate transparency and compliance in relation to the management of tax affairs, including benefits received under Future Made in Australia supports.
What they said: "This legislation is all about unlocking private sector investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well-paid jobs around the country," Albanese and Treasurer Jim Chalmers said in a joint statement.
"It embeds into law a disciplined and rigorous approach that will govern Future Made in Australia investments, to make the most of our net zero potential and ensure the benefits of these investments are widely shared and flow to local communities.
"This package does three main things. It will legislate our new National Interest Framework, introduce a robust sector assessment process, and outline the Community Benefit Principles that will apply to investment decisions.
"... The package will enable Government to commission Treasury to undertake independent analysis of the extent that areas of the economy are aligned with the National Interest Framework, barriers to private investment in these areas and opportunities to address them."
The source: Treasury
