Manufacturing News

‘No regrets’ tax credits to boost value adding – Ayres

Manufacturing News

Production tax credits that are part of the federal government’s Future Made in Australia legislation package will benefit companies that add value to Australia’s natural resources, according to the Assistant Minister for Manufacturing Senator Tim Ayres.

Interviewed on ABC Afternoon Briefing, Senator Ayres said the package, which aims to support $22 billion worth of investment over 10 years, would attract investment to areas where private sector investment might not otherwise go.

This included critical minerals processing, the production of green iron and of hydrogen.

Senator Ayres said: “They do require…tens of billions of dollars of private sector investment,

“It (the Future Made in Australia) is going to require a clear signal to the investment community and the big manufacturers that Australia is going to be competitive.

“That’s what the production tax credits that are attached to this package are all about.”

Senator Ayres said attracting those industries would make an enormous difference to Australia’s capacity to compete in the globe.

“It will make an enormous capacity to our national economic security and our national resilience, and it will deliver thousands and thousands of good quality manufacturing jobs into the regions.

“We can be competitive in these areas, but if we’re going to be competitive, we need a government that’s prepared to stand up for the interests of Australia and the interests of Australian manufacturers.”

Asked if these would be high risk investments Senator Aytes said the proposed production tax credits were a ‘no-regrets measure’.

“The tax credit only applies for a product that is manufactured in Australia.

“So, all of the work that has to be done to get to that point, is risk for the private sector.

“That tax credit only available – tonnes of green iron or tonnes of processed minerals or kilograms of hydrogen produced.

“That is a win-win for Australia.”

Ayres said investors did well, the government sources investment, and Australians secured good jobs.

“Right now, with the (US) Inflation Reduction Act, with countries around the world developing aggressive approaches in this area, we have to compete.

“This is a train that leaves the station only once, and this government is determined to make sure that Australia has got the competitive framework to deliver good jobs in manufacturing and all of the benefits for our economy that accrue from that.”

Picture: Senator Tim Ayres

Share this Story
Manufacturing News

Stay Informed

Go to Top