Australia's parliament has passed legislation that will provide production tax breaks for critical minerals and renewable hydrogen in an effort to support the country's energy transition goals and reduce reliance on China. The law includes tax incentives equivalent to 10% of processing and refining costs for 31 critical minerals over a 10-year period from 2028 to 2040. Additionally, a tax incentive of A$2 per kg of renewable hydrogen produced will be extended to promote the production of renewable energy. The Resources Minister highlighted the importance of processing these minerals domestically to create jobs and enhance global supply chains. The initiative aims to bolster Australia's critical minerals industry and reduce dependence on imports. Major economies worldwide are investing heavily in critical minerals projects to compete with China, which dominates rare earth production. The Labor government's push for these tax breaks faced opposition from the Liberal-National coalition, who criticized the additional environmental and Indigenous consultations required. However, the government believes that these incentives will lead to economic growth and job creation, particularly in resource-rich states like Western Australia and Queensland. This development aligns with Australia's commitment to achieving net zero emissions by 2050 and reflects its focus on advancing renewable energy technologies. The government had previously announced significant financial commitments to support critical minerals processing and renewable hydrogen production in its budget. The passage of this legislation marks a significant step towards realizing Australia's renewable energy ambitions and strengthening its position in the global energy transition market.