Details of a Future Made in Australia emerge as Bills get introduced to Federal Parliament

This week, the Australian Labor Party introduced the Future Made in Australia Bill 2024 and the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 to Parliament, a move the ALP considers a significant step toward making the Australian economy more prosperous and resilient.

The Future Made in Australia plan, first announced by the Prime Minister during a presentation to the Queensland Media Club in April, aims to capitalise on Australia’s shift to renewable energy while investing in sovereign manufacturing capabilities. 

The legislative package introduced on Wednesday has been described as crucial for implementing the Future Made in Australia plan.

In a press release, the Prime Minister stated, ​“This legislation is all about unlocking private sector investment to build a stronger, more diversified, and more resilient economy powered by renewable energy that creates secure, well-paid jobs across the country.

“It embeds into law a disciplined and rigorous approach that will govern Future Made in Australia investments, to maximise our net zero potential and ensure the benefits of these investments are widely shared and flow to local communities,” he said.

The package legislates a new National Interest Framework, introduces a robust sector assessment process, and outlines the Community Benefit Principles that will apply to investment decisions.

The National Interest Framework defines criteria for identifying sectors crucial to the net zero transformation, where Australia could have a genuine comparative advantage, or where there is an economic security or resilience imperative to invest in domestic capability.

The package will also enable the Government to commission the Treasury to undertake an independent analysis of how areas of the economy align with the National Interest Framework, the barriers to private investment in these areas, and the opportunities to address them.

The legislation sets out five ​‘Community Benefit Principles’ to be applied to Future Made in Australia supports identified in the Bill. To ensure the benefits of investment flow to local workers, industries, and communities, decision-makers must consider how relevant investments can:

• Promote safe and secure jobs that are well-paid and have good conditions;
• Develop more skilled and inclusive workforces by investing in training, skills development, and broadening opportunities for workforce participation;
• Engage collaboratively with and achieve positive outcomes for local communities, such as First Nations communities and those directly affected by the transition to net zero;
• Strengthen domestic industrial capabilities, including through stronger local supply chains; and
• Demonstrate transparency and compliance in managing tax affairs, including benefits received under Future Made in Australia supports.

The legislation establishes Future Made in Australia Plans, which are written plans that the Government can require to help maximise the broader benefits of investment in a Future Made in Australia. The application of the Principles and Plans will be subject to further consultation.

It will also establish the Future Made in Australia Innovation Fund to support emerging technologies in industries such as green metals, clean energy manufacturing, and low-carbon liquid fuels. Additionally, it will expand the National Interest Account to better enable investment in Australia’s national interests.

The Government committed a whopping $22.7 billion over the next decade to the program in the 2024 – 2025 Federal Budget, aimed at boosting manufacturing and strategic industries connected to the net-zero transition.