Zaneta Mascarenhas (Swan, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) recognises that the Critical Minerals Production Tax Incentive (CMPTI) will help build Australia's critical minerals industry by encouraging processing onshore and creating secure jobs in Australia; and

(2) notes the:

(a) Leader of Opposition says one thing about the CMPTI on the west coast and another on the east coast; and

(b) Shadow Treasurer is opposed to the CMPTI and has turned his back on the resources sector.

I moved this motion because I believe in a future made in Australia—a future that is built on a pathway to net zero emissions, and that pathway runs right through our national resources sector. We are a lucky country, blessed with amazing solar and wind resources above the ground and blessed with critical minerals and rare earths below the ground. These are the things that we need to transition to clean energy. And where are these resources? They're right under our feet, and it only makes sense for Labor to invest in these minerals' future.

There's a $17 billion production tax incentive, which is the cornerstone of that plan. It's not about funding; it's about building a future made here in Australia. This incentive is designed to create jobs, support local and regional communities and drive the future of our economy. Let's be clear: there are no handouts here. Companies will only receive a tax credit if they process critical minerals onshore, because we can make them here, and under Labor's strategic vision we will.

What's the problem with making more things here in Australia? I don't see one. What's stopping us? The opposition has mixed messages and a lack of clarity. You might recall the Leader of the Opposition's take on Labor's critical minerals investment program. It's hard to keep on track because he says one thing on the east coast, dismissing it as tax cuts for billionaires, and another thing in WA, when he falls back to his usual line: 'Well, we'll have more to say about that.' But when will he be clear with Australians?

Just a few weeks ago he was attacking Labor's vision of building a future made in Australia. Even his deputy joined in, saying that they would oppose the plan. What's the real stance? Are they wanting to support a vital industry for WA, or are they sticking to the same tired script of negativity? The truth is that the coalition has turned its back on the resources sector. The shadow Treasurer opposes the tax incentive. Why? It makes no sense to not foster a future in critical minerals, especially one that keeps processing onshore, creates jobs, supports local families and supports regional communities.

On nuclear, they're also all over the place. When will the opposition leader come clean on how much this plan will actually cost? This is the standard that they're living up to—confusion, flip-flopping—depending where they are and the time of day, and depending which side of the country they're on and who their audience is. They're not really interested in Western Australia. They only say what they think people on the west coast want to hear. They're not genuine. They don't get it. The Liberals are known for inaction and turning their backs. Let's not forget that, when they were in power, the approvals ground to a halt because they cut the environment department's resources by 40 per cent. We've doubled that since taking office, because we're not sitting on our hands. We have a plan and we're implementing it. We're engaged with the resources sector, because we understand it.

And I understand it, having worked in the industry for more than 15 years. I've seen firsthand what happens when we plan to invest. I witnessed that in Kambalda, a nickel-mining town. That's why I'm in a unique position to appreciate how crucial it is to support onshore processing of critical minerals. By doing so, we can seize the opportunity and create good jobs—local jobs, jobs for the future, jobs for families, jobs that build a community. We're not turning our backs on the resources sector or on the people who depend on it for their livelihoods. We're standing with them, investing in their future, because their future is our future, and ensuring that Australia is prosperous.

I moved this motion because I want to encourage all the members of the House to support it. Those not doing so would be turning their backs on the resources sector. We can't afford to do that. Let's build that future right here in Australia.

Marion Scrymgour (Lingiari, Australian Labor Party) Share this | Link to this | Hansard source

Is the motion seconded?

Alison Byrnes (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

James Stevens (Sturt, Liberal Party, Shadow Assistant Minister for Government Waste Reduction) Share this | Link to this | Hansard source

I appreciate the opportunity to talk about the government and their tax treatment of the resources sector. They've certainly had a change of heart since the Rudd era, when they taxed the mining industry into oblivion. We'll never forget the attacks on the sector that the Rudd government undertook when they sought to bring in their mining tax and sap all confidence out of sector and from the companies that were making investment decisions and competing against other economies around the world.

We know that, in mining and resources, like anything in economics, there's always a finite resource for infinite demand. There are a lot of places in the world that are pitching for investment in the mining and resources sector, and Australia is but one of them. It's vital to our economy. The Labor Party have had a very chequered history when it comes to the way in which they've introduced sovereign risk to that sector. The Rudd government's mining tax is but one of many such risks.

The sector certainly do not view the government as being friendly towards them. They view them with a great deal of suspicion. The sector are concerned about what their future might be under a Labor government. They're starting to find out more and more that this government is about picking winners and issuing press releases saying that they support particular things. However, the actions of the government and performance of the government tends to lead to a dramatically different outcome.

Now, the Liberal Party is the party of low tax. We want taxes to be as low as they can be. We want them to be as fair as they can be as well. We think that everyone should pay their fair share of tax, and you'd hope that that wasn't a point in dispute. We are also not the party of picking winners and suggesting that the government should be intervening in the free, proper operation of a market, because we'd like to see investments being decided on the basis of their merit. We'd also like Australia to be a safe and reliable investment destination. Those are the principles that we bring to policy decisions in this country, particularly industry policy decisions.

The mining and resources sector, of which the critical minerals sector is a part, know full well that they can rely on coalition governments to have steady, reliable, sensible policies that are about supporting businesses, giving them confidence to invest in our economy and giving them confidence that the policy settings that are in place when they make investment decisions will endure and will stay in place as time goes forward. The investment profile and horizon of this sector, like that of many, is measured in at least decades. When you reflect on the very chequered approach and attitudes of this Labor government and, in particular, members of this government, that consistency is not there.

While I hope that the Labor Party will not be in government for much longer, even worse than that would be the bigger threat of a future Labor government that is not in government alone but is instead in government in coalition with another party—the Greens. If you're in the mining and minerals resources sector, the most frightening concept for your business and for the tens of thousands of Australians that work directly in those businesses, as well as the hundreds of thousands of Australians that work indirectly in that sector, is a Labor-Greens government. That would mean the end of that sector entirely. That's what the price of the Greens would be in doing a deal to form minority government if the unhappy situation plays out as the polls are currently indicating. That is on the cards. The mining and resources sector could have no more nightmarish a scenario than that of a Labor-Greens government where the Greens hold that minority Labor government hostage on policies around mining. We already know what the attitudes of the Greens are on that topic, and we also know that they will insist on commitments that involve the ending of so many of those vitally important businesses.

This motion talks about the critical minerals sector and mining and resources. We, in the coalition, have a completely unimpeachable history of backing that sector, of supporting that sector, of giving that sector policy certainty and of never introducing sovereign risk to that sector. We're the only political force in this country that can say that.

Jerome Laxale (Bennelong, Australian Labor Party) Share this | Link to this | Hansard source

As members of the government know all too well, the road to net zero emissions is paved with Australia's rich resources. Beneath our vast land lies a treasure trove of critical minerals—minerals the world desperately needs to power the renewable energy technologies of tomorrow.

Australia is blessed to be one of the word's largest exporters of lithium and the third-largest producer of cobalt. These minerals, along with others like nickel and rare earth elements, are the backbone of the global transition to renewable energy. However, our role in this transition cannot and should not be limited to merely extracting these resources and shipping them overseas. We simply must do more than just dig up stuff and put it on a boat; we've been doing that for way too long.

Under Labor, we want to do more onshore because it'll grow our economy and create jobs here at home. That's precisely what the Albanese government's $17 billion critical minerals production tax incentive is designed to achieve. This incentive is a game changer for industry and for onshore processing of critical minerals. It's a forward-thinking initiative that will drive investment into our critical minerals sector. It'll create secure, well-paying jobs that will support local communities and build industries critical for the future of the global economy. Our policies are about ensuring Australia becomes not just a supplier of raw materials but a leader in the global supply chain for renewable energy technologies. Our production tax credits are a targeted smart use of our tax system to solve big problems, leverage our competitive advantage and enhance Australia's prosperity. If companies don't process these critical minerals onshore, they don't receive a tax credit; it's as simple as that.

This low-risk approach will grow our critical minerals industry and create jobs for future generations. But, as usual, the Liberals and Nationals seem unable to decide whether or not they support Australian jobs, Australian manufacturing and the Australian critical minerals sector. The Leader of the Opposition has been flying back and forth across the country, saying one thing in Western Australia and another on the east coast. His best mate, the shadow Treasurer, has made his opposition to this policy clear, effectively turning his back on the critical minerals sector that is so crucial to our nation's decarbonised future. They claim to support the resources sector in one breath only to undermine it in the next. This duality shows just how out of touch they are with the realities of the industry and the needs of our nation.

Unlike those opposite, our government has been consistent in its support for the critical minerals sector. Whether on the west coast, the east coast or anywhere else, our message is the same: we will back Australia's critical minerals industry to thrive, create jobs and help decarbonise the world, because the global demand for critical minerals is surging. The world needs lithium, our cobalt and nickel and other minerals to produce batteries, wind turbines and solar panels that are essential for the global transition to clean energy. This presents a golden opportunity for Australia to cement its place in the world as a renewable energy superpower.

Our free trading partners, like the United States, Japan, Korea, India and the UK—even the EU—are all racing to diversify their sources of critical minerals. They are seeking reliable partners who can ensure the resilience of global supply chains. Unlike the Liberals and Nationals, Labor is stepping up to meet this challenge. We're strengthening our strategic partnerships with our allies through the Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact, which includes a ministerial level taskforce to drive collaboration in this space. Our government won't sit by and ignore this vital part of our resources sector, as those opposite did for a decade; we will unashamedly support critical minerals processing onshore so that our nation can capitalise on this golden opportunity to create good, well-paid jobs here in Australia and ensure that Australia remains at the forefront of the global transition to renewable energy.

We are at such an important juncture here. We can go down the path of the opposition and not support our critical minerals sector and not support local manufacturing, and, along with it, miss out on all the opportunities that will present themselves, or we can invest in a future made in Australia. We can invest in the jobs of the future and we can help the world decarbonise.

Marion Scrymgour (Lingiari, Australian Labor Party) Share this | Link to this | Hansard source

There being no further speakers, the debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.