The Federal Government has passed the Future Made in Australia (Guarantee of Origin) Bill 2024 and its two supporting bills to authenticate low-emissions products and support renewable electricity.
This legislation establishes the voluntary Guarantee of Origin (GO) scheme, an Australian Government-backed certification scheme.
According to the Federal Government, the GO scheme is designed to help Australian producers remain competitive in domestic and global markets by accurately representing the low-emissions nature of their products.
It will provide businesses and investors with regulatory certainty and encourage investment through a high-integrity certificate scheme that ensures renewable energy and decarbonised products can be properly valued.
Federal Energy Minister Chris Bowen said the Federal Government is committed to launching the Guarantee of Origin scheme in 2025 to provide Australian industry with the certainty it needs to make the most of Australia’s distinctive competitive advantages as we make the clean energy transition.
“The GO Scheme is a key element of the energy transition toolbox that our government is putting to work to drive investment as we strive to become a renewable energy superpower,” he said.
The Federal Government also introduced Future Made in Australia (Production Tax Credit and Other Measures) Bill 2024 to Parliament.
Under the Bill, hydrogen producers will receive $2 per kilogram of renewable hydrogen produced, while critical minerals processors will get a 10 per cent tax break on processing and refining costs.
Both incentives will be available for up to ten years per project.
The program targets 31 critical minerals essential for manufacturing clean energy products such as wind turbines, solar panels, and electric vehicles.
Companies will only receive the tax benefits after their projects are operational and producing.
To qualify, companies must meet certain community benefit requirements, though the specific details are still subject to consultation and will be determined by the Treasury.
The government aims to position Australia as a key supplier in the global transition to renewable energy, while creating local jobs and strengthening the domestic economy.
The incentives will begin in the 2027-2028 fiscal year and run through 2039-2040.
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