Compilation #0 | Effective 2024-12-10
FRBR Work URI: /akn/au/act/2024/119
This Act is the 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.
Note: This table relates only to the provisions of this Act as originally enacted.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.
The objects of this Act are:
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
(c) 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.
This Act establishes the National Interest Framework, a 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.
The National Interest Framework consists of the net zero transformation stream and the economic resilience and security stream.
The Minister may, after consulting appropriate Ministers, direct the Secretary to conduct a sector assessment. A sector assessment is an assessment of a sector of the Australian economy conducted for the purpose of analysing the extent to which the sector aligns with the National Interest Framework in one of those streams, as well as opportunities to address barriers to private investment, in the national interest, in relation to the sector.
A person or body deciding whether certain support (known as Future Made in Australia support) should be provided by the Commonwealth, a Commonwealth entity or a Commonwealth company must have regard to the community benefit principles. Such support may include a grant, loan, indemnity, guarantee, warranty, investment of money or equity investment.
Future Made in Australia support must not be provided for any of the following activities:
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.
An applicant for, or recipient of, Future Made in Australia support must have a Future Made in Australia plan in effect in the circumstances prescribed by rules made under this Act.
In this Act:
Australia’s greenhouse gas emissions reduction targets means:
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;
the greenhouse gas emissions reduction targets set out in paragraphs 10(1)(a) and (b) of the Climate Change Act 2022; or
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.
Commonwealth company has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
Commonwealth entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.
community benefit principles: see subsection 10(3).
Future Made in Australia Innovation Fund means the program of financial assistance known by that name that is administered by the Australian Renewable Energy Agency under the Australian Renewable Energy Agency Act 2011.
Future Made in Australia plan: see section 11.
Future Made in Australia support: see subsection 10(2).
National Interest Framework means the National Interest Framework established by section 7.
net zero transformation means achieving Australia’s greenhouse gas emissions reduction targets and contributing to the reduction of global greenhouse gas emissions.
Paris Agreement means the Paris Agreement done at Paris on 12 December 2015, as amended and in force for Australia from time to time.
personal information has the same meaning as in the Privacy Act 1988.
rules means rules made under subsection 15(1).
Secretary means the Secretary of the Department.
sector assessment: see subsection 6(2).
Note: 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.
(2) 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.
The net zero transformation 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.
The economic resilience and security stream
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.
Matters to be considered
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.
Ministerial directions
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.
Assessment to be conducted independently
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.
(5) 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.
Assistance with sector assessments
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.
Note: 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.
(2) 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:
(i) under Export Finance and Insurance Corporation Act 1991; orsection 23B of the
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.
Note: Future Made in Australia support will be provided under other laws.
(3) 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.
Future Made in Australia support must not be provided by the Commonwealth, a Commonwealth entity or a Commonwealth company for any of the following activities:
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.
(1) 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.
Reporting by Commonwealth entities
(1) The accountable authority of a Commonwealth entity must ensure that an annual report prepared under Public Governance, Performance and Accountability Act 2013 for a reporting period for the entity complies with subsection (3) of this section if the entity provides Future Made in Australia support (including on behalf of the Commonwealth) during the period.section 46 of the
Reporting by Commonwealth companies
(2) The directors of a Commonwealth company must ensure that the documents given to the responsible Minister under Public Governance, Performance and Accountability Act 2013 for a reporting period for the company include a report that complies with subsection (3) of this section if the company provides Future Made in Australia support during the period.section 97 of the
Content of report
A report described in subsection (1) or (2) that relates to a Commonwealth entity or Commonwealth company must include:
for each person to whom the entity or company provides or commits Future Made in Australia support during the reporting period:
the name of the person; and
the amount of support provided or committed in the reporting period; and
the amount of all Future Made in Australia support provided or committed by the entity or company in the reporting period.
Definitions
(4) The following expressions have the same meaning when used in this section as they have in the Public Governance, Performance and Accountability Act 2013:
accountable authority;
director;
reporting period.
Note: See also the definitions of Commonwealth entity and Commonwealth company in section 5 of this Act.
Application
Subsections (1) and (2) apply in relation to a reporting period that ends on or after the commencement of this section.
The rules may prescribe requirements that must be complied with, methods or criteria that must be applied, or matters that may, must or must not be taken into account, in:
applying for Future Made in Australia support; or
deciding whether Future Made in Australia support should be provided; or
providing Future Made in Australia support.
Note: The rules may make different provision for different kinds of Future Made in Australia support: see subsection 33(3A) of the Acts Interpretation Act 1901.
However, rules made for the purposes of subsection (1) have no effect in relation to the provision of Future Made in Australia support under a particular law to the extent that the rules are inconsistent with that law.
Sections 11 and 11A do not limit this section.
The Secretary may, in writing, delegate to an SES employee, or an acting SES employee, in the Department all or any of the Secretary’s functions or powers under Part 2 of this Act relating to sector assessments.
Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.
In performing a delegated function or exercising a delegated power, the delegate must comply with any written directions of the Secretary.
The annual report prepared by the Secretary of the Department and given to the Minister under Public Governance, Performance and Accountability Act 2013 for a period must include a report on the operation of this Act during the period.section 46 of the
The Minister may, by legislative instrument, make rules prescribing matters:
required or permitted by this Act to be prescribed by the rules; or
necessary or convenient to be prescribed for carrying out or giving effect to this Act.
To avoid doubt, the rules may not do the following:
create an offence or civil penalty;
provide powers of:
arrest or detention; or
entry, search or seizure;
impose a tax;
set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;
directly amend the text of this Act.
[Minister’s second reading speech made in—
House of Representatives on 3 July 2024
Senate on 11 September 2024]
(84/24)