Since being launched in November 2021, the First Nations Clean Energy Network has advocated for an energy system that ensures First Nations participation and benefit.
In our recent submission in response to Treasuryʼs Critical Minerals Production Tax Incentive consultation paper and Hydrogen Production Tax Incentive consultation paper, we note:
- First Nations communities and the impacts on land, waters and culture and through supply chains must be considered in the design of these production tax incentives.
- Jurisdictions with which we are competing for investment have incorporated and incentivised First Nations outcomes and partnerships through taxation arrangements, and Australia must do likewise.
We recommend:
- Broader eligibility requirements - the Community Benefit Principles and the need for including a specific point on First Nations outcomes in the Future Made in Australia Bill.
- The incentive - proponents should be incentivised with bonuses (additional tax offsets) to partner with First Nations communities and achieve First Nations outcomes.
- Eligible entities - proponents should be required to demonstrate cultural competence.
Establishing incentives through industrial policy - like production tax credits - provides an opportunity to consider and design and deliver mutually beneficial outcomes for proponents and First Nations communities.
This in turn incentivises First Nations partnerships and genuine First Nations participation in projects - thereby providing opportunities to decrease risk for proponents and add significant shareholder value.