Community Benefit Principles public consultation information presentation
Transcript
The following is a transcript of the above presentation by Bridget Gannon, Head of the Whole of Industry Division, recorded in December 2025.
Introduction
Hello and welcome to a presentation on the Future Made in Australia Community Benefit Principles public consultation. My name is Bridget Gannon. I'm the Head of the Whole of Industry Division at the Department of Industry, Science and Resources. This presentation is part of an important consultation process that aims to gather insights, feedback and perspectives from across our community and stakeholders.
I'd like to begin by acknowledging the Ngunnawal people as the Traditional Custodians of the land on which I'm speaking from today in Canberra. We acknowledge First Nations peoples as the Traditional Custodians and Lore Keepers of the oldest living culture and pay respects to their Elders past and present. We extend that respect to First Nations Peoples watching today.
The purpose of this presentation is to provide information about the public consultation process as well as the Community Benefit Principles, which I'll be referring to throughout this session as the Principles.
Focus of live information webinars
In January, we'll be holding three live information webinars that will focus on specific Principles at more length. At the end of these webinars, there will be an opportunity for questions.
The webinar on Tuesday the 13th of January will focus on Principles 1 and 2, which relate to safe and secure jobs and skilled and inclusive workforces. The webinar on Wednesday the 14th of January will focus on Principles 3 and 4, which relate to local communities and First Nations communities and Traditional Owners. The webinar on Thursday the 15th of January will focus on Principles 5 and 6, which relate to domestic industrial capabilities and tax affairs.
I'll provide an overview on each of the Principles shortly, but first I'd like to take you through some of the broader context on why we're consulting and the government's flagship industrial policy initiative – a Future Made in Australia.
Why we are consulting
The Principles are a set of legislative Principles set out in subsection 10(3) of the Future Made in Australia Act 2024, which ensure that the projects receiving Future Made in Australia support deliver benefits to local workers, industries and communities.
Although the Future Made in Australia Act is in effect, a legislative instrument called rules is required as specific guidance or instructions to support the implementation of the Act. That will guide how the Principles are put into effect.
Feedback from this consultation process will inform how the rules are developed and how the policy framework is put into practise.
A Future Made in Australia
The Future Made in Australia agenda is the Australian Government's flagship Industrial Policy Initiative. The government's intention for the Future Made in Australia agenda is to leverage our low-cost renewable energy, skilled workforce and abundant natural resources.
Through this agenda, Australia can create new clean energy industries and make a substantial contribution to global emissions reduction and the world's net zero commitments. These factors position Australia well to strengthen priority supply chains, improve economic resilience and security, and remain an indispensable part of the net zero global economy.
What we are consulting on
This consultation focuses on the implementation of the Principles. The proposed policy framework for implementing the Principles is set out in the public guidance document, which is available on the consultation website.
Through this consultation, we're seeking your views on implementation of the Principles, including:
minimum requirements, which are requirements that apply to all projects seeking Future Made in Australia support
threshold requirements, which are requirements that apply to projects receiving Future Made in Australia support at or above a financial threshold
considerations for Future Made in Australian plans, which I'll touch on later in the presentation
a financial threshold for applying the threshold requirements and developing and implementing a Future Made in Australia plan – we're seeking feedback on the financial threshold amount as part of this consultation.
We're also consulting on how commitments against the Principles will be monitored and enforced.
Insights received through consultation will inform the drafting of the rules that I mentioned earlier.
The Community Benefit Principles
There are six Principles covering a wide range of policy areas, including employment and skills, supporting the transition to net zero, traditional industry policy, and tax compliance. Decision-makers must have regard to the Principles when deciding whether Future Made in Australia support should be provided.
These Principles were shaped by stakeholder feedback when the Future Made in Australia Bill was introduced into Parliament and it was reviewed by a parliamentary committee.
I'll now go through each one individually with a high-level overview, but please note that more detail will be covered in the live information webinars through January and is set out in the consultation paper that's available on our website.
The first Principle is set out in section 10, subsection 3(a) of the Future Made in Australia Act. This Principle focuses on the government's vision for a dynamic and inclusive labour market in which everyone has the opportunity to secure well paid work. This will help ensure people, businesses and communities can be beneficiaries of change and thrive. Well paid, safe and secure jobs with good conditions also help project proponents to attract workforce participants.
The second Principle is also set out in section 10 of the Act. This Principle focuses on skills and training opportunities and inclusive policies offered by proponents to build their workforce. This will help equip the workforce, particularly the workforce from local communities and under-represented groups, with the capabilities to work in new industries. Investing in skilled and inclusive workforces helps attract and retain employees with the right skills, particularly when skill shortages exist and competition for the same skills is high.
The third Principle is also set out in section 10, subsection (3) of the Future Made in Australia Act. This Principle focuses on decision-making in partnership with communities, with a focus on mitigating local concerns and gathering local knowledge to inform project design. This can help minimise or remove adverse economic, environmental, cultural and social impacts on communities, while reducing unforeseen barriers to project delivery.
The fourth Principle set out in the in the Future Made in Australia Act focuses on improving the socio-economic outcomes of First Nations employment, education and strong economic participation. It also focuses on the development and maintenance of Aboriginal and Torres Strait Islander People's distinct cultural, spiritual, physical and economic relationship with land and waters. Supporting First Nations communities and Traditional Owners to participate in and share the benefits of projects means that proponents may enhance the knowledge and skills of their workforce, diversify their supplier base, improve understanding of First Nations considerations and how to integrate these considerations within their projects to discover new ways to benefit from the transition to net zero.
The fifth Principle set out in the Future Made in Australia Act focuses on strengthening Australia's industrial capabilities, which can be achieved through maximising Australian entity participation, including local, small and medium enterprises, in projects by providing full, fair and reasonable opportunities to participate. Additionally, investment in research and development can help project proponents to adapt to changing technologies and markets. Maximising Australian entity participation and investing in research and development will help create robust industrial capabilities and drive industry-wide progress.
The sixth and final Principle is set out in section 10, subsection (3)(a)(v) of the Future Made in Australia Act, and it focuses on demonstrating appropriate engagement with Commonwealth taxation laws to act in the national interest. This will help ensure that the provision of Future Made in Australia support and Future Made in Australia Production Tax Incentives continue to uphold the integrity of the Commonwealth tax system.
Future Made in Australia plans
Now, for a bit more background on Future Made in Australia plans. Project proponents seeking Future Made in Australia support at or above a financial threshold must have in place a Future Made in Australia plan. This plan will need to explain how a project would provide community benefits consistent with the Principles. The plan must also meet content requirements outlined in the rules to be made under the Future Made in Australia Act.
Future Made in Australia support
Future Made in Australia support in this context refers to the prescribed programs and initiatives where decision-makers must have regard to the Principles. Future Made in Australia support currently includes support under the domestic capability on the National Interest Account administered by Export Finance Australia, and the Future Made in Australia Innovation Fund administered by the Australian Renewable Energy Agency.
These two supports are prescribed as Future Made in Australia support under the Future Made in Australia Act. This means that proponents seeking funding from either of these funds will be required to demonstrate the Principles. Proponents seeking funding at or above a financial threshold will also be required to have a Future Made in Australia plan.
For background, a new capability on the National Interest account was established in 2024 to support domestic projects without an export link consistent with the Future Made in Australia National Interest framework. The relevant sectors under that framework are listed here. [The presenter referred to a list displayed on the PowerPoint slide]
The Future Made in Australia Innovation Fund will support pre-commercial innovation, demonstration and deployment of renewable energy and low emission technologies across the industries listed here.
Additional government support is being considered for prescription as Future Made in Australia support under the Future Made in Australia rules.
Production Tax Incentives
Now, in addition to the implementation of the Principles, we're consulting on the application of the Principles to Future Made in Australia Production Tax Incentives. The proposed policy framework for this is also contained within the public guidance that's available on the consultation website.
The guidance outlines the requirements proposed for inclusion in the rules to be developed by the Treasurer under taxation legislation, and insights received from this consultation will be considered when drafting these rules.
The Principles will apply to Future Made in Australia Production Tax Incentives in a separate way to how they will apply to Future Made in Australia support.
The Hydrogen Production Tax Incentive and the Critical Minerals Production Tax Incentive were introduced under legislation this year and will apply to eligible production or processing expenditure from 1 July 2027.
Providing feedback
I'm going to turn now to how you can provide feedback. Throughout this consultation period, feedback can be uploaded as an attachment to the consultation page listed on this slide or can be sent in via post. If you have any queries or wish to send your submission via post, please e-mail us at the CBP Consultation mailbox listed here on the screen. We are accepting submissions until the close of business on Monday, the 2nd of February.
We welcome feedback from everyone to help shape the implementation of the Principles. We're interested in views from everyone, including community groups, other jurisdictions, regulators and businesses. We're particularly interested in practical perspectives on opportunities and any risks, challenges or unintended consequences.
Associated with the implementation of the Principles, the cover note available alongside the guidance document includes a series of discussion questions to guide your submission, but you do not need to answer any or all of these questions in your response. You're also free to provide a submission that does not directly respond to the discussion questions.
Conclusion
Once the public consultation process finishes, feedback will inform the rules under the Future Made in Australia Act and the public guidance.
Thank you for tuning in and for contributing to this important consultation. We encourage you to attend the live information webinars and to provide submissions through our consultation portal.
Your insights, questions and feedback are invaluable to shape the Future Made in Australia policy and legislative rules, ensuring public investment and the private investment it attracts to flow to communities in ways that benefit those communities, businesses and workers, and including First Nations Australians. Thank you.
[End of transcript]