Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024

The majority voted against amendments introduced by West Australian Senator Dean Smith (Liberal), which means they failed.

Senator Smith explained that:

The amendment seeks to establish much-needed clarity and structure around the community benefit principles and to mitigate what we argue are very obvious risks—risks that were identified at the Senate committee stage, risks that we believe have not yet been mitigated. This amendment amends the bill to ensure that the community benefit rules made in relation to both the hydrogen production tax offset and the critical minerals tax offset cannot specify (1) that an enterprise agreement within the meaning of the Fair Work Act 2009 must apply to both the employees of the company seeking a tax credit and an employee organisation; (2) that a company seeking a tax credit must establish a reconciliation action plan; (3) that the company must consult on the environmental impact of its activities, unless that consultation is already required by Commonwealth, state or territory law; and (4) that the company must consult with First Nations communities, unless, again, that consultation is already required by Commonwealth, state or territory law. To avoid any doubt, the amendment also provides that a company's share of the production tax credits cannot be reduced where these conditions are not complied with.

Amendment text

(1) Schedule 1, item 3, page 14 (after line 33), after subsection 421-45(1), insert:

(1A) However, the HPTO community benefit rules must not:

*(a) specify the condition that, for a company to be entitled to a * hydrogen production tax offset for the income year:*

(i) an enterprise agreement (within the meaning of the Fair Work Act 2009 ) must apply to both the employees of the company and an employee organisation (within the meaning of that Act); or

(ii) the company must establish and maintain a reconciliation action plan; or

(iii) the company must conduct consultation relating to the environmental impact of the company’s activities, unless that consultation is already required by a law of the Commonwealth, a State or a Territory; or

(iv) the company must conduct consultation with First Nations communities, unless that consultation is already required by a law of the Commonwealth, a State or a Territory; or

(b) specify that the amount of a company’s hydrogen production tax offset for the income year will be reduced in the circumstance where the company does not comply with any of the conditions mentioned in subparagraphs (a)(i) to (iv).

(2) Schedule 2, item 1, page 61 (after line 13), after subsection 419-145(1), insert:

(1A) However, the CMPTI community benefit rules must not:

*(a) specify the condition that, for a company to be entitled to a * CMPTI production tax offset for the income year:*

(i) an enterprise agreement (within the meaning of the Fair Work Act 2009 ) must apply to both the employees of the company and an employee organisation (within the meaning of that Act); or

(ii) the company must establish and maintain a reconciliation action plan; or

(iii) the company must conduct consultation relating to the environmental impact of the company’s activities, unless that consultation is already required by a law of the Commonwealth, a State or a Territory; or

(iv) the company must conduct consultation with First Nations communities, unless that consultation is already required by a law of the Commonwealth, a State or a Territory; or

(b) specify that the amount of a company’s CMPTI production tax offset for the income year will be reduced in the circumstance where the company does not comply with any of the conditions mentioned in subparagraphs (a)(i) to (iv).