Future Made in Australia Act 2024

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

to establish a National Interest Framework to support the consideration of, and decision‑making in relation to, significant public investment that unlocks private investment at scale in the national interest; and

to enable the use of the National Interest Framework for sector assessments that analyse the extent to which particular sectors of the Australian economy are ones where:

Australia could have a sustained comparative advantage in a net zero global economy and public investment is likely needed for the sector to make a significant contribution to emissions reduction at an efficient cost; or

some level of domestic capability is necessary or efficient to deliver economic resilience and security, and the private sector will not deliver the necessary investment in the sector in the absence of government support; and

to ensure that the provision of Future Made in Australia support under other laws considers broad community benefits, in particular by:

promoting safe and secure jobs that are well paid and have good conditions; and

developing more skilled and inclusive workforces, including by investing in training and skills development and broadening opportunities for workforce participation; and

engaging collaboratively with and achieving positive outcomes for local communities, such as First Nations communities and communities directly affected by the transition to net zero; and

supporting First Nations communities and traditional owners to participate in, and share in the benefits of, the transition to net zero; and

strengthening domestic industrial capabilities, including through stronger local supply chains; and

demonstrating transparency and compliance in relation to the management of tax affairs, including benefits received under Future Made in Australia supports.

the extraction of coal, crude oil or natural gas;

the construction of infrastructure for the primary purpose of extracting coal, crude oil or natural gas;

directly financing investments for the sole purpose of the use of coal, crude oil or natural gas.

if:

Australia’s current nationally determined contribution was communicated in accordance with Article 4 of the Paris Agreement in June 2022; and

that nationally determined contribution has not been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement;

in any other case—the greenhouse gas emissions reduction targets included in:

Australia’s current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or

if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.

The Paris Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

The Minister may, by notifiable instrument, direct the Secretary to conduct a sector assessment.

A sector assessment is an assessment of a sector of the Australian economy that analyses:

the extent to which the sector aligns with the National Interest Framework under subsection 7(3) or (4); and

opportunities to address barriers to private investment, in the national interest, in relation to the sector.

Before giving a direction under subsection (1), the Minister must consult such Ministers as the Minister considers appropriate.

Without limiting subsection (1), a direction under that subsection may specify the period within which the sector assessment is to be conducted or a report on the assessment is to be given to the Minister (see section 9).

To avoid doubt, subsection (1) applies whether or not a sector assessment has previously been conducted for the sector.

The National Interest Framework is established by this section.

The National Interest Framework has the following streams:

the net zero transformation stream;

the economic resilience and security stream.

A sector of the Australian economy aligns with the National Interest Framework in the net zero transformation stream if:

the sector could have a sustained comparative advantage in a net zero global economy; and

public investment is likely to be needed for the sector to make a significant contribution to emissions reduction at an efficient cost.

A sector of the Australian economy aligns with the National Interest Framework in the economic resilience and security stream if:

some level of domestic capability in the sector is a necessary or efficient way to deliver economic resilience and security; and

the private sector will not deliver the necessary investment in the sector in the absence of government support.

A sector assessment must consider such of the following matters as the Secretary considers relevant to the conduct of the assessment:

whether Australia could be competitive in the sector;

whether the sector could contribute to an orderly path to net zero transformation, including through the use of renewable energy;

whether the sector could build the capabilities of the Australian people and the regions of Australia, and generate employment opportunities;

whether support for the sector could improve Australia’s economic resilience and security;

whether support for the sector could:

recognise the key role of the private sector; and

deliver genuine value for money.

Each sector assessment must also consider the following matters:

the sector’s impacts on demand for fossil fuels (such as coal, crude oil or natural gas), and how those impacts can be managed in a way that is consistent with an orderly path to net zero transformation;

the decarbonisation potential in relevant global supply chains for the sector, including how those supply chains can contribute to the reduction of global greenhouse gas emissions.

The Minister may, by legislative instrument, give directions to the Secretary in relation to the conduct of sector assessments.

The directions may include consultation requirements for sector assessments, including requirements in relation to the following:

public consultation;

periods for consultation.

The Minister must not:

give directions under subsection (2) to the Secretary in relation to a particular sector assessment; or

seek to influence a particular sector assessment in any other way.

To avoid doubt, this section does not limit the application of subsection 33(3) of the Acts Interpretation Act 1901 in relation to an instrument made under this Act.

For the purposes of conducting a sector assessment, the Secretary may:

consult with any Commonwealth entity; or

arrange for any Commonwealth entity to provide assistance or support.

The Commonwealth entities the Secretary may consult with for the purposes of paragraph (a) include (without limitation) the following:

the Australian Competition and Consumer Commission;

the Climate Change Authority;

the Commonwealth Scientific and Industrial Research Organisation;

Infrastructure Australia;

the Net Zero Economy Agency;

the Productivity Commission.

After conducting a sector assessment, the Secretary must give the Minister a report on the assessment.

The Minister must cause a copy of the report to be laid before each House of the Parliament within 30 sitting days of that House after the Minister receives the report.

The Minister may redact information from the report if the Minister is satisfied that:

the information is personal information; or

release of the information would, or could reasonably be expected to:

divulge information that is confidential or commercially sensitive; or

cause damage to the security, defence or international relations of the Commonwealth; or

cause damage to relations between the Commonwealth and a State or Territory.

A person or body deciding whether Future Made in Australia support should be provided must have regard to the community benefit principles.

Future Made in Australia support is any support provided by the Commonwealth, a Commonwealth entity or a Commonwealth company (including a grant, loan, indemnity, guarantee, warranty, investment of money or equity investment) in relation to which one or more of the following apply:

the support is provided under the Future Made in Australia Innovation Fund;

the support is provided by the Export Finance and Insurance Corporation:

under section 23B of the Export Finance and Insurance Corporation Act 1991; or

otherwise for the purpose of performing its functions under paragraph 7(1)(df) or (dg) of that Act (which set out the Corporation’s national economy function and net zero function);

the support is identified as Future Made in Australia support under another law of the Commonwealth;

the support is prescribed by the rules for the purposes of this paragraph.

Future Made in Australia support will be provided under other laws.

The community benefit principles are:

that Future Made in Australia support should provide community benefits, in particular by:

promoting safe and secure jobs that are well paid and have good conditions; and

developing more skilled and inclusive workforces, including by investing in training and skills development and broadening opportunities for workforce participation; and

engaging collaboratively with and achieving positive outcomes for local communities, such as First Nations communities and communities directly affected by the transition to net zero; and

supporting First Nations communities and traditional owners to participate in, and share in the benefits of, the transition to net zero; and

strengthening domestic industrial capabilities, including through stronger local supply chains; and

demonstrating transparency and compliance in relation to the management of tax affairs, including benefits received under Future Made in Australia supports; and

any other principles specified in the rules for the purposes of this paragraph.

Subsection (1) does not apply to the provision of Future Made in Australia support under a particular law:

to the extent that having regard to the community benefit principles would be inconsistent with that law; or

in circumstances prescribed by the rules for the purposes of this paragraph.

the extraction of coal, crude oil or natural gas;

the construction of infrastructure for the primary purpose of extracting coal, crude oil or natural gas;

directly financing investments for the sole purpose of the use of coal, crude oil or natural gas.

A person who applies for, or receives, Future Made in Australia support must, in the circumstances prescribed by the rules, have in effect a plan (a Future Made in Australia plan) that:

relates to the support; and

meets the requirements of subsection (2).

A Future Made in Australia plan must:

be in writing; and

explain how the Future Made in Australia support would provide community benefits consistent with the community benefit principles; and

comply with any requirements prescribed by the rules.

The rules may provide in relation to Future Made in Australia plans, including circumstances in which such a plan comes into effect or ceases to be in effect.