At the centrepiece of the 2024-25 Federal Budget, the “Future Made in Australia” fund will aim to harness the global shift towards clean energy with a sweeping package of projects aimed at boosting domestic manufacturing and accelerating the path to net-zero emissions.
With this in mind, the Government has revealed $22.7 billion of long-term spending on clean energy and strategic industries as part of its Future Made in Australia plan.
Key Future Fund highlights at a glance:
- $6.7 billion in renewable hydrogen tax incentives over ten years to support the transformation of establishing Australia as a renewable energy leader.
- $7.1 billion over 11 years in critical minerals processing tax incentives to support the global transition to net zero.
- $3.2 billion commitment to the Australian Renewable Energy Agency (ARENA) to support commercialisation of critical net zero technologies like green metals, batteries and low-carbon fuels. This includes a new $1.7 billion innovation fund – supporting early stage developments and commercialisation in priority sectors including renewable hydrogen, green metals, low carbon liquid fuels and clean energy battery technology.
- Other major investments include $1.3 billion for a Hydrogen Headstart program and over $500 million over eight years for battery manufacturing.
R&D Tax Incentive Update
There have been no changes to the Australian R&D Tax Incentive program, however the Federal Budget papers have revealed the program is projected to see a substantial rise, exceeding initial expectations and adding billions to the budget.
- The R&D Tax Incentive is projected to see a substantial rise. Rebates are expected to increase by nearly $500 million next year and $2.6 billion over the five-year period from 2023-24 to 2027-28.
- The surge in claims is primarily driven by higher-than-expected participation from companies in the professional, scientific, and technical services sectors, indicating robust growth and innovation in these industries.
Quantum Leap: $466.4 Million Investment in Brisbane’s Quantum Computing
The Australian Government, in partnership with PsiQuantum and the Queensland Government, is making a significant investment in the future of technology with a $466.4 million project to build a commercial-scale quantum computer in Brisbane. This initiative is set to dramatically enhance Australia’s quantum computing capabilities and open up new possibilities in various industries, from healthcare and finance to logistics and cybersecurity, all of which heavily rely on advanced data processing capabilities.
Boosting Health Innovation: $1.4 Billion for the Medical Research Future Fund
The Medical Research Future Fund (MRFF) is dedicated to transforming health and medical research in Australia. As a long-term investment, the MRFF is all about making big changes that improve lives, boost the economy, and to ensure that the health system remains sustainable. Excitingly, it’s getting a $1.4 billion boost over the next thirteen years to support medical research and its practical applications.
ATO Compliance Taskforce: Bolstering Defences Against Tax and Superannuation Fraud
The Australian Taxation Office (ATO) is set to receive a substantial $187 million in funding to enhance its efforts in combating tax and superannuation fraud. This investment forms a critical part of the government’s broader initiative to strengthen tax compliance and protect the integrity of Australia’s financial systems.
- Advanced Technology Upgrades and Real-Time Fraud Detection: With $78.7 million allocated to technology enhancements, the ATO will be able to detect and block suspicious activities as they happen. This proactive measure will significantly bolster the ATO’s capacity to prevent fraudulent transactions.
- New Compliance Taskforce: The establishment of a new compliance taskforce, supported by $83.5 million, will focus on reclaiming lost revenue and stopping fraudsters from obtaining false refunds.
- Improved Fraud Response: An additional $24.8 million will be used to enhance the ATO’s counter-fraud activities and provide better support for individuals and businesses affected by fraud. This funding will help ensure effective and timely responses to fraudulent activities.
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