This year, I moved a private member's motion calling on the government to enhance Australia's international competitiveness in new energy industries by introducing production tax incentives. This motion is part of a series of speeches and representations I’ve made, urging the government to respond boldly to the United States Inflation Reduction Act (IRA).

I’ve been concerned that Australia is not acting quickly or decisively enough to capitalise on the global transition to green energy. Today, I rise in support of the government’s introduction of production tax incentives for hydrogen and critical minerals. These measures will bolster Australian industries in an increasingly competitive international market.

The global economy is shifting with decarbonisation, and nations will emerge as winners or losers based on their natural advantages and agility in seizing new opportunities. Australia is well-placed with abundant sun, wind, and critical minerals, including all the inputs required for lithium batteries. Yet, we risk remaining a country that merely exports raw materials instead of developing downstream processing capabilities onshore.

Australia also ranks poorly in economic complexity—93rd out of 133 countries—due to our limited export diversification. To thrive in a decarbonised economy and withstand global shocks, we must embrace renewable industries and focus on producing more complex products.

The IRA in the United States represents a groundbreaking commitment to green energy, with approximately two-thirds of its $1 trillion budget allocated to uncapped tax incentives across clean energy industries. This provides a clear signal to investors and offers lessons for Australia. Many companies are moving operations to the US due to these attractive incentives.

Production tax incentives are a proven mechanism. Unlike upfront grants, they reward results by reducing taxes only when production occurs. The bill's hydrogen tax incentive provides a $2/kg subsidy for renewable hydrogen, supporting its development and reducing production costs over time. Similarly, incentives for critical minerals processing could contribute billions to the Australian economy by 2035.

Western Australia, my home state, leads in lithium production and is a major exporter of nickel, cobalt, and rare earth elements. Accelerating opportunities in these sectors is essential for WA to play a pivotal role in the global energy transition.

Finally, this bill also modernises Indigenous Business Australia's borrowing powers, enabling greater financial flexibility to promote First Nations economic self-determination—a recommendation of a recent inquiry into which I was involved.

While the opposition leader has dismissed these incentives as “tax cuts for billionaires,” the WA Liberal Party supports the bill, recognising its potential to attract investment and drive innovation. This approach ensures Australia can maximise its natural resources and position itself as a leader in the net-zero economy.

I commend the bill to the house.