The long-anticipated Future Made in Australia Bill 2024 was introduced by the Albanese Labor Government on 4 July 2024. The Bill enforces the Government’s commitment to invest $22.7 billion in the Future Made in Australia package, which was announced under the 2024-25 Federal Budget.
Further information on the 2024-25 Federal Budget can be found here.
The Bill aims to position Australia as a globally competitive renewable energy leader by leveraging its advantages in the net zero economy. It supports public investment to efficiently reduce emissions and enhance domestic capabilities for economic prosperity and security. Additionally, the Bill promotes transparency while prioritising workforce development, community engagement, and stronger domestic industrial capabilities.
The Bill is built on three pillars: a National Interest Framework to identify sectors with sustained comparative advantages or resilience needs, a sector assessment process to dismantle barriers to private investment, and Community Benefit Principles to ensure investments fortify communities.
Collectively, these pillars aim to propel the Future Made in Australia agenda, positioning Australia as a renewable energy superpower and a key player in the global net zero economy.
National Interest Framework
The Bill establishes the National Interest Framework to better align economic incentives with national interests. This is aimed at supporting Government consideration and decision-making to facilitate significant public investments that, in turn, unlocks large-scale private investments.
The framework includes the following two streams:
- the net zero transformation stream which focuses on sectors with potential comparative advantages in a global net zero economy, which will likely require public investment for efficient emissions reduction; and
- the economic resilience and security stream which targets sectors where some level of domestic capability ensures economic resilience but lacks sufficient private sector investment without government support.
Sector assessment process
The Bill empowers the responsible Minister to direct the Treasury Secretary to conduct sector assessments within the National Interest Framework to overcome barriers to private investment in key economic areas.
The assessments are intended to be rigorous and follows an evidence-based and consultative process, incorporating expertise from industry leaders, investor insights, and stakeholder perspectives.
Sector assessments will complement the existing policy frameworks and objectives. After conducting a sector assessment, the Treasury Secretary must report to the responsible Minister, who must then present and table the report in Parliament within 30 sitting days.
Community Benefit Principles
Within the Bill, the Government has established ‘Community Benefit Principles’ to ensure that the public and private investments that the Government generates, flows to communities as benefits for workers and businesses.
Further information, including on the Government’s Community Benefit Principles can be found in the Future Made in Australia Bill 2024 Explanatory Memorandum, here.
The Hamilton Locke New Energy team will provide further insights and updates on the Future Made in Australia Bill in the coming weeks.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.
