Prime Minister Anthony Albanese points to $30b reasons to back critical minerals tax credits

Anthony Albanese’s signature production tax credits policy will underpin $30 billion worth of projects in Western Australia — but the Prime Minister warns these are at risk from the Coalition’s opposition to the plan. Ahead of arriving in WA for a four-day visit with his entire ministry in tow, Mr Albanese released Treasury analysis about what the State stands to gain. The Government’s Future Made in Australia plan includes the tax breaks for green hydrogen and critical minerals processing, and private investors have plans to pursue 22 projects in these fields just in WA. This covers $13b worth of green hydrogen works — including Mitsui’s $87 million Yuri project in the Pilbara — and $10b worth of critical minerals projects such as Lynas’ $575m rare earths processing plant at Kalgoorlie, the Treasury analysis of Deloitte’s Investment Monitor seen by The West shows. US Export-Import bank chair Reta Jo Lewis, who has been in Australia this week, says there is considerable interest from local firms in getting critical minerals projects off the ground. On top of this, investors have announced 14 renewable energy and storage projects attracting more than $6b, including the $1.6b big battery Synergy is building in Collie, which the PM may see in person. “Supporting our critical minerals and rare earths industry is an essential step in Australia taking responsibility to lead on critical minerals globally,” Mr Albanese told The West. “We are stepping up while the Opposition is stepping back.” He intends to discuss the budget plans with senior business leaders in WA this week — including from the resources sector — and hear their thoughts on the Government’s direction. The Coalition was quick to oppose the $13.7b of production tax credits, with leader Peter Dutton and shadow treasurer Angus Taylor branding the policy “billions for billionaires”. It put them at odds with the WA Liberal and National leaders. Some Federal Liberals from WA have also been concerned about how the hardline position would be received by voters, hoping they might be able to convince the party’s leadership to soften its stance by the time the production tax credits come to be legislated. But earlier in the month, Mr Taylor said the party had been “very clear” in its opposition to the tax credits. “Peter Dutton’s only plan for WA is to rip away support for investment and jobs. Just this week his team announced a plan for $100b worth of cuts,” Mr Albanese said. “He’s been clear that he does not support our production tax incentives, putting billions of dollars of investment and local job opportunities at risk.” The Prime Minister will use his visit to WA this week — his fifth for the year — to highlight other points of difference, including the Government’s cost of living relief, TAFE and university places, social housing support and urgent care clinics. He intends to travel to Liberal-held seats of O’Connor, Canning and Moore as well as the safe Labor electorates Brand and Perth. He’ll also campaign in the new seat of Bullwinkel, tipped as a tight race between the Nationals’ Mia Davies, Liberal Matt Moran and Labor’s yet-to-be-revealed candidate. On Monday, he will convene a full ministry meeting, and his 30-strong frontbench are also spending time across the State.