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The Australian federal government has announced the introduction of “Future Made in Australia” legislative package to build a stronger, cleaner economy.
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Prime Minister Anthony Albanese announced that the government will introduce the new Future Made in Australia Bill 2024 and Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 to Parliament.
The legislation is reportedly aimed at 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.
“The Future Made in Australia legislation will bring together our policy work in this space to ensure it is an effective and practical strategy for Australia to seize this opportunity," Prime Minister Albanese said.
“This legislative package is a key part of putting our Future Made in Australia plan into action, so Australia makes the most of the major economic and industrial opportunities of the energy transition.
“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.”
Under the new strategy, Future Made in Australia will legislate new National Interest Framework and introduce a robust sector assessment process and outline the Community Benefit Principles that will apply to investment decisions.
The National Interest Framework sets forward criteria for identifying sectors that will be key to the net zero transformation and where Australia could have a genuine comparative advantage, or where there is an economic security or resilience imperative to invest in domestic capability.
The package is envisioned to 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.
It sets out five Community Benefit Principles that will be applied to Future Made in Australia supports identified in the bill. To ensure the benefits of investment flow to local workers, industries and communities, decision makers will be required to have regard to how relevant investments can:
- 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.
- Demonstrate transparency and compliance in relation to the management of tax affairs, including benefits received under Future Made in Australia supports.
The legislation also establishes written Future Made in Australia plans required by government to help maximise the broader benefits of investment in a Future Made in Australia. The application of the principles and plans will be subject to further consultation.
It will also establish the Future Made in Australia Innovation Fund to support emerging technologies in industries like green metals, clean energy manufacturing and low carbon liquid fuels, and it expands the National Interest Account to better enable investment in Australia’s national interests.
“To promote investment certainty, these amendments reintroduce guaranteed statutory funding for ARENA, which was allowed to lapse under the previous government,” Prime Minister Albanese said.
“The government recognises that the best opportunities for Australia and its people lie at the intersection of industry, energy, resources, skills and our ability to attract and deploy investment.
“The Future Made in Australia package improves our investment environment and encourages new industries that put us on a path to net zero and strengthen our economic resilience.”
