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Hydrogen Production Tax Incentives: Powering Australia’s Clean Energy Future

Australia is paving the way toward a net-zero emissions future, with clean and sustainable hydrogen at the heart of its transition strategy. As the government targets significant emission reductions by 2035 and a zero-emission economy by 2050, hydrogen offers both domestic and global opportunities for innovation and export.

Partnering with a trusted tax accountant ensures your business can make the most of these emerging incentives.

Why Hydrogen Matters for Australia’s Future

Hydrogen has wide-ranging applications across industries, offering clean alternatives to traditional fossil fuels. Its potential includes:

Supplying heat and chemical inputs for the metal and manufacturing industries
Serving as a low-emission fuel for vehicles, buses, trucks, aircraft, and shipping
Acting as a source of energy storage and generation
Enabling export opportunities to countries committed to decarbonising their economies

Hydrogen is a central pillar of the Future Made in Australia initiative, driving innovation, sustainability, and economic growth.

Understanding the Hydrogen Production Tax Incentive (HPTI)

The Hydrogen Production Tax Incentive (HPTI), administered by the Clean Energy Regulator (CER) under the Future Made in Australia (Guarantee of Origin) Act 2024, offers temporary tax concessions to eligible companies that commence medium to large-scale green hydrogen manufacturing in Australia.

This incentive aims to accelerate clean hydrogen production, helping local industries compete globally while contributing to national climate goals.

Eligibility Criteria

To qualify for the HPTI, applicants must meet the following criteria:

Be an Australian citizen or a permanent resident company with an active ABN
Be registered under the Future Made in Australia (Guarantee of Origin) framework
Produce renewable hydrogen in Australia between 1 July 2027 and 1 July 2040
Be subject to Australian tax obligations
Comply with the HPTI community benefit principles, ensuring ethical and sustainable practices

What You Can Claim

Eligible producers can access a refundable tax offset of $2 per kilogram of eligible hydrogen produced. This benefit is available for up to 10 years.

Final Thoughts

The Hydrogen Production Tax Incentive represents a major step forward in building a sustainable energy economy. By supporting large-scale hydrogen manufacturing, Australia strengthens its pathway toward net-zero emissions, advances clean technology adoption, and boosts global competitiveness.

At Infinity Solution Tax Plus, our experienced professionals specialise in helping businesses leverage tax incentives and structure effective sustainability-driven strategies.

If you’re seeking expert guidance to navigate emerging tax policies or optimise your tax position, reach out to us – your trusted Box Hill accountant for a cleaner, smarter financial future.

Sienna Jiang is the Founder and Managing Director of Infinity Solution Tax Plus, a Chartered Accounting firm dedicated to helping clients stay financially organised while achieving their business, financial, and personal goals.

A Certified Public Accountant (CPA) with over 10 years of experience in accounting and taxation, Sienna brings broad and in-depth expertise in tax compliance, business advisory, financial reporting, and strategic tax planning for individuals and small businesses — including significant experience working with professionals in the medical field.

She works closely with clients to deliver tailored solutions in tax structuring, business strategy, and long-term planning. Her holistic approach combines practical guidance with personalised support, helping clients simplify compliance, drive growth, and reach their goals with confidence.