Treasurer Jim Chalmers introduces Future Made in Australia Bill

Treasurer Jim Chalmers has revealed how a $22.7bn policy to ensure Australia leads the renewable energy transition will be delivered.

The federal government has introduced its signature $22.7bn Future Made in Australia Bill to position Australia as a leader in the global renewable energy sector.

The legislative framework will oversee how the government partners with the private sector to deliver more renewable projects, like green hydrogen, and the manufacturing of solar panels and batteries.

The major policy pillar formed a key part of Labor’s federal budget this year, with Treasurer Jim Chalmers calling the energy transition to net-zero emissions as “the biggest transformation in the global economy since the industrial revolution”.

Dr Chalmers introduced the package on Wednesday, announcing a new national interest framework to identify the key areas for investment and a sector assessment process to help identify the barriers preventing private sector backing.

He also listed five community benefit principles to ensure benefits are reinvested back into communities.

Federal Treasurer Jim Chalmers revealed the details of the Future Made in Australia plan on Wednesday morning. Picture: NewsWire/ Martin Ollman

He said Australia had been dealt the “most incredible set of cards”, citing the “unique combination of geological, meteorological, geographical and geopolitical comparative advantages”.

“The world is changing and the pace of that change is accelerating as the planet moves to a future powered by cheaper, cleaner energy,” he told the House of Representatives.

“We know it would be an egregious breach of our generational responsibilities as a government if we didn’t play this winning hand.”

For a project to secure government investment, decision-makers must ensure it promotes secure, safe and well-paid jobs, develops skilled and inclusive workforces, and boosts local communities, with a priority placed on First Nations communities.

Dr Chalmers said Australia had been dealt the ‘most incredible set of cards’ to be a leader in the renewable energy transition. Picture: NewsWire/ Martin Ollman

Projects must also strengthen Australia’s domestic industrial capabilities and ensure private companies who benefit from the funds can demonstrate tax transparency and compliance.

Spruiking the Bill on ABC, Dr Chalmers said the proposed legislation aimed to ensure government money would promote private sector investment.

“A Future Made In Australia is all about good, secure, well-paid jobs,” he said.

“It’s all about imposing in this act … the rigour and robustness we need on the public funding which is required to leverage much more private investment and make sure that when private investment flows, it benefits our workers and communities.”

The government’s Bill comes as Opposition Leader Peter Dutton has banked his election run on building seven nuclear reactors at the site of existing or former coal-fired power stations, pledging that two sites could be operational between 2035 to 2037.

Asked whether he supported the government’s flagship policy, Nationals leader David Littleproud said his party needed to “see the details” before establishing its position.

However, he criticised the government for spending $45m on an advertising campaign spruiking the policy.

“I would have thought that something as monumental as this, would you really need to spend $45m in advertising to promote?” he said.

“They already announced a billion dollars on solar panels where there is an oversupply in China already. You’ve got to question a government in picking winners and how good they’ll be at that.”

The legislation would create the framework in which the government would give grants and funding to drive up private investment on renewable projects. Picture: NewsWire/ Brenton Edwards

ACTU president Michele O’Neil supported the legislation and said it had the potential to guarantee jobs and domestic manufacturing for decades.

She pointed to the critical minerals industry, which she said currently provided 13,463 direct jobs, and could create more than 21,000 ongoing jobs, plus another 42,743 construction roles through the existing development pipeline.

“In the transition to net zero by 2050, we are projected to create between one and two million new direct jobs over the next 25 years,” she said.

“By fulfilling our potential as a world leader, Australia can not only support local jobs and the reduction of Australia’s climate pollution, but also contribute to cutting the world’s climate pollution. ​

“Future Made in Australia leverages our unrivalled sun and wind power to create the jobs and build the industries that will form the backbone of the clean energy economy and the key to our national security.”

Originally published as Treasurer Jim Chalmers introduces Future Made in Australia Bill