Sue Lines (President) | Link to this | Hansard source

Prior to today, Senator David Pocock moved a second reading amendment relating to the Future Made in Australia Bill 2024 and the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024:

At the end of the motion, add ", but the Senate:

(a) notes that:

(i) the electrification of households and small businesses would result in thousands of dollars of savings a year and significantly reduce Australia's domestic emissions,

(ii) the United States' Inflation Reduction Act of 2022, to which this bill is partially a response, included significant measures to encourage household electrification and those measures are considered a success, and

(iii) the failure to include electrification in the Future Made in Australia framework is a significant missed opportunity; and

(b) calls on the Government to urgently provide an ambitious package to encourage the electrification of Australian households and small businesses with a focus on low-income households, rental properties and apartments".

The question is that the second reading amendment moved by Senator David Pocock on sheet 2870 be agreed to.

Question negatived.

The next question is that the second reading amendment circulated by Senator Van on sheet 2868 be agreed to.

Senator Van's circulated amendment in respect of the Future Made in Australia Bill 2024 and the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024

At the end of the motion, add ", but the Senate calls on the Government to:

(a) provide for the Australian Defence Force (ADF) to enter into offtake agreements for low-carbon fuel sources to ensure that at least 30% of the ADF's fuel consumption by 2028 is sourced from biodiesel, sustainable aviation fuel, or other low-carbon alternatives, with priority given to domestic producers;

(b) establish Renewable Energy Industrial Precincts in areas with high renewable energy generation capacity which:

(i) give priority access to government grants and infrastructure subsidies to industries that group together near wind, solar and battery storage facilities in Renewable Energy Zones,

(ii) maximise renewable energy use by meeting 80% of energy needs through locally generated renewable energy and reduce the reliance on long-distance transmission, and

(iii) share energy, including re-use, storage and distribution infrastructure, to reduce the overall capital expenditures and increase energy efficiency; and

(c) ensure that eligibility for financial incentives under the Future Made in Australia program, as well as the National Reconstruction Fund, the Northern Australia Infrastructure Facility, the Hydrogen HeadStart program, the Solar SunShot program and other programs to support companies in priority sectors, is contingent upon applicant companies meeting the following criteria:

(i) a minimum of 50% of materials and components used by applicant companies in the production of renewable energy technologies, such as solar panels and batteries, is sourced domestically,

(ii) applicant companies must demonstrate the creation of sustainable, full- and part-time permanent jobs, with priority given to regions transitioning from fossil fuel industries,

(iii) applicant companies must implement sustainable manufacturing processes, which minimise carbon footprints and promote recycling and waste reduction, and

(iv) applicant companies must prioritise the utilisation of new intellectual property or technological advancements within Australia, especially in cutting-edge renewable energy sectors such as next-generation photovoltaics and advanced energy storage solutions".

Question negatived.

The question now is that these bills be read a second time.

Sue Lines (President) | Link to this | Hansard source

I will now deal with the Committee of the Whole amendments to the Future Made in Australia Bill 2024, starting with the amendments circulated by the government. I understand the minister has documents to table.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I table supplementary explanatory memoranda relating to the government amendments to the Future Made in Australia Bill 2024 and the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024.

Sue Lines (President) | Link to this | Hansard source

The question is that the government amendments on sheet SK126 be agreed to.

Government's circulated amendments to the Future Made in Australia Bill 2024

(1) Clause 4, page 5 (after line 21), after the paragraph beginning "A person or body deciding", insert:

Future Made in Australia support must not be provided for any of the following activities:

(a) the extraction of coal, crude oil or natural gas;

(b) the construction of infrastructure for the primary purpose of extracting coal, crude oil or natural gas;

(c) directly financing investments for the sole purpose of the use of coal, crude oil or natural gas.

(2) Clause 8, page 9 (after line 30), after subclause (1), insert:

(1A) Each sector assessment must also consider the following matters:

(a) the sector's impacts on demand for fossil fuels (such as coal, crude oil or natural gas), and how those impacts can be managed in a way that is consistent with an orderly path to net zero transformation;

(b) the decarbonisation potential in relevant global supply chains for the sector, including how those supply chains can contribute to the reduction of global greenhouse gas emissions.

(3) Page 13 (after line 24), after clause 10, insert:

10A Future Made in Australia support not to be provided for coal, crude oil or natural gas etc.

Future Made in Australia support must not be provided by the Commonwealth, a Commonwealth entity or a Commonwealth company for any of the following activities:

(a) the extraction of coal, crude oil or natural gas;

(b) the construction of infrastructure for the primary purpose of extracting coal, crude oil or natural gas;

(c) directly financing investments for the sole purpose of the use of coal, crude oil or natural gas.

Sue Lines (President) | Link to this | Hansard source

PRESIDENT (): I will now deal with the amendments circulated by Senator David Pocock. The first question is that clause 11A stand as printed.

Senator David Pocock opposed clause 11A of the Fut ur e Made in Australia Bill 2024 in the following terms—

SHEET 2872

(4) Clause 11A, page 14 (line 8) to page 15 (line 15), to be opposed.

Question agreed to.

The question now is that Senator David Pocock's remaining amendments on sheet 2872 and the amendments on sheets 2871, 2901 and 2997 be agreed to.

Senator David Pocock's circulated amendments to the Future Made in Australia Bill 2024

SHEET 2871

(1) Clause 7, page 9 (after line 14), at the end of the clause, add:

(5) However, a sector of the Australian economy will not align with the National Interest Framework in the net zero transformation stream or the economic resilience and security stream if:

(a) the sector engages in, or has the overarching purpose of, supporting the exploration, prospecting, discovery, development, production or extraction of fossil fuels; or

(b) the sector engages in, or has the overarching purpose of, supporting the installation, commission, operation or maintenance of a power station that uses an energy source that is not an eligible renewable energy source (within the meaning of section 17 of the Renewable Energy (Electricity) Act 2000); or

(c) the sector is a technology for carbon capture and storage (within the meaning of the National Greenhouse and Energy Reporting Act 2007); or

(d) the sector constructs, installs, commissions, operates or maintains infrastructure for the primary purpose of engaging in an activity mentioned in paragraph (a), (b) or (c).

(2) Clause 8, page 9 (after line 30), after subclause (1), insert:

(1A) A sector assessment must also:

(a) include analysis of the contribution by the sector to Australia's greenhouse gas emissions reduction targets and net zero transformation; and

(b) consider the direct and indirect emissions impacts of operations at scale by the sector; and

(c) consider the decarbonisation potential in global supply chains.

_____

SHEET 2872

(1) Clause 5, page 5 (before line 27), before the definition of Australia's greenhouse gas emissions reduction targets, insert:

ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.

Australian company means a corporation:

(a) that has an ABN; and

(b) whose headquarters is within Australia; and

(b) that is at least 51 per cent owned by Australian citizens or residents (including by ownership of shares in a company); and

(c) that is at least 51 per cent governed by directors who are Australian citizens or residents; and

(d) that is not a subsidiary of a corporation that is not an Australian company.

(2) Clause 8, page 10 (lines 17 to 31), omit subclause (6) (including the note), substitute:

Consultation requirements

(6) For the purposes of conducting a sector assessment, the Secretary:

(a) must consult with each of the following:

(i) the Productivity Commission;

(ii) the Commonwealth Scientific and Industrial Research Organisation;

(iii) the Australian Competition and Consumer Commission;

(iv) Infrastructure Australia;

(v) the Climate Change Authority;

(vi) the Net Zero Economy Authority;

(vii) a person or entity specified in the rules; and

(b) may:

(i) consult with any other Commonwealth entity; or

(ii) arrange for any Commonwealth entity to provide assistance or support.

(3) Page 14 (after line 7), after clause 11, insert:

11AA Requirements before providing Future Made in Australia support

Future Made in Australia support must not be provided to a person in relation to a sector unless:

(a) a sector assessment for the sector is conducted in accordance with section 8; and

(b) the sector assessment report recommends that the support be provided.

(5) Clause 14, page 16 (line 14), before "The annual report", insert "(1)".

(6) Clause 14, page 16 (after line 17), at the end of the clause, add:

(2) The report must include:

(a) the total amount of Future Made in Australia supports provided during the period; and

(b) for each of those supports, details of the following:

(i) the recipient of the support;

(ii) the purpose of the support;

(iii) the kind of support provided;

(iv) the amount of support provided;

(v) the amount of that support that was spent during the period;

(vi) the total amount of support provided to Australian companies during the period.

_____

SHEET 2901

(1) Clause 5, page 5 (before line 27), before the definition of Australia's greenhouse gas emissions reduction targets, insert:

ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.

Australian company means a corporation:

(a) that has an ABN; and

(b) whose headquarters is within Australia; and

(b) that is at least 51 per cent owned by Australian citizens or residents (including by ownership of shares in a company); and

(c) that is at least 51 per cent governed by directors who are Australian citizens or residents; and

(d) that is not a subsidiary of a corporation that is not an Australian company.

(2) Clause 11A, page 15 (line 3), at the end of subclause (3), add:

; and (c) the amount of all Future Made in Australia support provided or committed by the entity or company to Australian companies during the reporting period.

_____

SHEET 2997

(1) Page 17 (after line 3), at the end of Part 4, add:

16 Independent review of Act

(1) The Minister must cause an independent review to be conducted of the operation of this Act.

(2) The review must commence no later than 3 years after the day on which this Act receives the Royal Assent.

(3) The persons who conduct the review must give the Minister a written report of the review within 6 months of the commencement of the review.

(4) The Minister must table a copy of the report in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

Question negatived.

I will now deal with the amendments circulated by Senator Van. The question is that clause 13 stand as printed.

Senator Van opposed clause 13 of the Future Made in Australia Bill 2024 in the following terms—

SHEET 2880

(9) Clause 13, page 16 (lines 3 to 12), to be opposed.

_____

SHEET 2881

(11) Clause 13, page 16 (lines 3 to 12), to be opposed.

Question agreed to.

The question now is that the remaining Senator Van amendments on sheets 2880 and 2881 and the amendments on sheets 2878 and 2879 be agreed to.

Senator Van's circulated amendments to the Future Made in Australia Bill 2024—

SHEET 2878

(1) Clause 10, page 12 (lines 5 to 7), omit subclause 10(1), substitute:

(1) A person or body deciding whether Future Made in Australia support should be provided must have regard to:

(a) the community benefit principles; and

(b) the National Interest Framework.

_____

SHEET 2879

(1) Clause 6, page 8 (after line 5), after subclause 6(1), insert:

(1A) Without limiting subsection (1), the Minister must, by notifiable instrument, direct the Secretary to conduct a sector assessment of the domestic defence manufacturing sector.

_____

SHEET 2880

(1) Clause 4, page 5 (line 10), omit "Secretary", substitute "Productivity Commission".

(2) Clause 6, page 8 (line 4), omit "Secretary", substitute "Productivity Commission".

(3) Clause 8, page 9 (line 18), omit "Secretary", substitute "Productivity Commission".

(4) Clause 8, page 10 (line 3), omit "Secretary", substitute "Productivity Commission".

(5) Clause 8, page 10 (line 10), omit "Secretary", substitute "Productivity Commission".

(6) Clause 8, page 10 (line 18), omit "Secretary", substitute "Productivity Commission".

(7) Clause 8, page 10 (lines 23 to 31), omit the note, substitute:

Note: The Commonwealth entities the Productivity Commission may consult with for the purposes of paragraph (a) include (without limitation) the following:

(a) the Australian Competition and Consumer Commission;

(b) the Climate Change Authority;

(c) the Commonwealth Scientific and Industrial Research Organisation;

(d) Infrastructure Australia;

(e) the Net Zero Economy Agency.

(8) Clause 9, page 11 (line 2), omit "Secretary", substitute "Productivity Commission".

_____

SHEET 2881

(1) Clause 4, page 5 (line 10), omit "Secretary", substitute "Independent Sector Assessment Panel".

(2) Clause 5, page 6 (after line 26), after the definition of Future Made in Australia support, insert:

Independent Sector Assessment Panel means the Independent Sector Assessment Panel established by section 9A.

(3) Clause 6, page 8 (line 4), omit "Secretary", substitute "Independent Sector Assessment Panel".

(4) Clause 8, page 9 (line 18), omit "Secretary", substitute "Independent Sector Assessment Panel".

(5) Clause 8, page 10 (line 3), omit "Secretary", substitute "Independent Sector Assessment Panel".

(6) Clause 8, page 10 (line 10), omit "Secretary", substitute "Independent Sector Assessment Panel".

(7) Clause 8, page 10 (line 18), omit "Secretary", substitute "Independent Sector Assessment Panel".

(8) Clause 8, page 10 (line 23), omit 'Secretary', substitute 'Independent Sector Assessment Panel'.

(9) Clause 9, page 11 (line 2), omit "Secretary", substitute "Independent Sector Assessment Panel".

(10) Page 11 (after line 17), at the end of Part 2, add:

9A Independent Sector Assessment Panel

(1) The Independent Sector Assessment Panel is established by this section.

(2) The Independent Sector Assessment Panel consists of such members as the Secretary from time to time appoints.

(3) Members of the Independent Sector Assessment Panel must have the appropriate skills, expertise, qualifications or experience to conduct sector assessments.

9B Disclosure of interests to Secretary

A member of the Independent Sector Assessment Panel must give written notice to the Secretary of all interests, pecuniary or otherwise, that the member has or acquires and that conflict or could conflict with the proper performance of the member's duties.

I will now deal with the amendments circulated by Senator Thorpe. The question is that Senator Thorpe's amendments on sheets 2906, 2907, 2930, 2931, 2932, and 3028 be agreed to.

Senator Thorpe's circulated amendments to the Future Made in Australia Bill 2024—

SHEET 2906

(1) Clause 10, page 13 (lines 19 to 24), omit subclause (4), substitute:

(4) Subsection (1) prevails to the extent of any inconsistency with another law under which Future Made in Australia support is provided.

(2) Page 13 (after line 24), after clause 10, insert:

10A Consultation requirements for recipients of Future Made in Australia support

(1) If the Commonwealth, a Commonwealth entity or a Commonwealth company (the Commonwealth provider) proposes to provide Future Made in Australia support to a person (the recipient) in relation to a project, or an action, of a kind prescribed by the rules, the recipient must comply with subsection (2) before the support is provided.

(2) The recipient must demonstrate that:

(a) the recipient has undertaken community consultation in relation to the project or action, including by consulting the relevant First Nations communities and traditional owners; and

(b) the recipient will use the Future Made in Australia support in a way that is consistent with the community benefit principles; and

(c) the recipient has established, and will maintain, a community engagement plan; and

(d) the recipient has established, and will maintain, a consultative committee for the project or action that includes:

(i) members that represent the interests of the relevant local communities; and

(ii) members that represent the interests of the relevant First Nations communities.

10B Community benefit principles — accountability to communities

(1) If Future Made in Australia support is provided by the Commonwealth, a Commonwealth entity or a Commonwealth company (the Commonwealth provider) to a person (the recipient), the Commonwealth provider must establish and maintain a mechanism through which a person covered by subsection (2) may make submissions (including complaints) to the Commonwealth provider about whether or not:

(a) the recipient is using the Future Made in Australia support in a way that is consistent with the community benefit principles; or

(b) the Future Made in Australia support is providing community benefits consistent with the community benefit principles.

Note: The Commonwealth provider must have regard to the community benefit principles when deciding whether Future Made in Australia support should be provided (see subsection 10(1)).

(2) This subsection covers the following persons:

(a) a person who is employed by the recipient, otherwise performs work for the recipient, or has a commercial relationship with the recipient;

(b) a member of a local community in relation to which, or for the benefit of which, the Future Made in Australia support is provided;

(c) a member, or a traditional owner, of a First Nations community in relation to which, or for the benefit of which, the Future Made in Australia support is provided.

_____

SHEET 2907

(1) Clause 10, page 12 (lines 5 to 7), omit subclause (1), substitute:

(1) A person or body deciding whether Future Made in Australia support should be provided must have regard to:

(a) the community benefit principles; and

(b) if the support would be provided to a person in a sector of the economy that aligns with the National Interest Framework in the net zero transformation stream—the following:

(i) whether providing the support will, or is likely to, contribute to achieving Australia's greenhouse gas emissions reduction targets;

(ii) whether providing the support will, or is likely to, contribute to achieving Australia's obligations under the Paris Agreement and other relevant international agreements;

(iii) the desirability of supporting investment in the lowest emissions intensity operations and technologies available to the sector at the time the support would be provided.

_____

SHEET 2930

(1) Clause 3, page 4 (line 24), after "participation", insert ", with a specific focus on including people who are long-term unemployed, First Nations people, people with disability, women and others marginalised in the labour market".

(2) Clause 3, page 4 (lines 25 to 28), omit subparagraph (c)(iii), substitute:

(iii) engaging collaboratively with communities, to realise the community benefit principles and achieve positive social and economic and other outcomes for local communities, such as First Nations communities, communities experiencing disadvantage or marginalisation, and communities directly affected by the transition to net zero; and

(3) Clause 10, page 13 (line 4), after "participation", insert ", with a specific focus on including people who are long-term unemployed, First Nations people, people with disability, women and others marginalised in the labour market".

(4) Clause 10, page 13 (lines 5 to 8), omit subparagraph (3)(a)(iii), substitute:

(iii) engaging collaboratively with and achieving positive social and economic and other outcomes for local communities, such as First Nations communities, communities experiencing disadvantage or marginalisation, and communities directly affected by the transition to net zero; and

_____

SHEET 2931

(1) Clause 3, page 4 (line 36), at the end of paragraph 3(c), add:

; and (vi) supporting climate change adaptation, enhancing resilience, and being nature positive; and

(vii) supporting the long-term temperature goal outlined in Article 2, paragraph 1 (a) of the Paris Agreement, to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.

(2) Clause 5, page 6 (after line 28), after the definition of National Interest Framework, insert:

nature positive means halting and reversing the decline in diversity, abundance, resilience and integrity of ecosystems and native species populations by 2030 (measured against a 2021 baseline), and achieving recovery by 2050.

(3) Clause 10, page 13 (after line 16), at the end of paragraph (3)(a), add:

(vi) supporting climate change adaptation, enhancing resilience, and being nature positive; and

(vii) supporting the long-term temperature goal outlined in Article 2, paragraph 1 (a) of the Paris Agreement, to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels; and

_____

SHEET 2932

(1) Clause 3, page 4 (line 18), after "benefits", insert "that are equitable and inclusive".

(2) Clause 10, page 12 (line 30), after "benefits", insert "that are equitable and inclusive".

_____

SHEET 3028

(1) Clause 5, page 6 (after line 20), after the definition of community benefit principles, insert:

constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.

(2) Clause 10, page 13 (lines 19 to 24), omit subclause (4), substitute:

(4) Subsection (1) prevails to the extent of any inconsistency with another law under which Future Made in Australia support is provided.

(3) Clause 12, page 15 (after line 30), after subclause 12(2), insert:

(2A) Without limiting subsection (1), the rules must prescribe a requirement for a person who receives Future Made in Australia support to:

(a) publish information about the actions the person is taking to ensure the provision of the Future Made in Australia support is consistent with the community benefit principles; and

(b) do so on a regular basis, and no fewer than 2 times a year.

(2B) Without limiting subsection (1), the rules must prescribe a requirement for a person or body that provides Future Made in Australia support, or another person or body prescribed by the rules, to establish and maintain a mechanism through which an intended beneficiary of the support may seek a remedy if:

(a) the person who receives the support (the recipient) is not using the support in a way that is consistent with the community benefit principles; or

(b) the support is not providing community benefits consistent with the community benefit principles.

(2C) For the purposes of subsection (2B), an intended beneficiary of the Future Made in Australia support includes:

(a) a person who is employed by the recipient mentioned in paragraph (2B)(a), otherwise performs work for the recipient, or has a commercial relationship with the recipient; and

(b) an employee organisation (within the meaning of the Fair Work Act 2009) that is capable of representing the industrial interests of a person employed by the recipient; and

(c) a member of a local community (within the meaning of subparagraph 10(3)(a)(iii)); and

(d) a member, or a traditional owner, of a First Nations community in relation to which, or for the benefit of which, the Future Made in Australia support is provided; and

(e) a constitutional corporation with involvement in the domestic industrial sector, or involvement in a local supply chain.

Question negatived.

I will now deal with the amendments to the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024, starting with the amendments circulated by the government. The question is that the government amendments on sheet SK127 revised be agreed to.

Government's circulated amendments to the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024

(1) Schedule 1, page 5 (after line 21), after item 3, insert:

3A At the end of paragraph 8(2)(b)

Add:

; and (iv) in the case of EFIC's overseas infrastructure financing functions—Australia's commitments under the Statement on International Public Support for the Clean Energy Transition.

(2) Schedule 1, item 12, page 6 (line 28), omit "Note", substitute "Note 1".

(3) Schedule 1, item 12, page 6 (after line 30), at the end of subsection 23B(2), add:

Note 2: The Future Made in Australia Act 2024 may also prevent the provision of a service or product under this section in certain circumstances: see paragraph 10(2)(b) and section 10A of that Act (Future Made in Australia support not to be provided for coal, natural gas or crude oil etc.).

(4) Schedule 1, item 12, page 6 (after line 30), after section 23B, insert:

23C Approval required before providing services or products to finance certain coal, crude oil or natural gas activities

Despite any other provision of this Part, EFIC must not provide a service or product under this Part that would:

(a) directly finance the extraction of coal, crude oil or natural gas; or

(b) directly finance the construction of infrastructure for the primary purpose of extracting coal, crude oil or natural gas; or

(c) directly finance investments for the sole purpose of the use of coal, crude oil or natural gas;

unless an application for the service or product has been referred to the Minister under section 25.

Note: A direction under section 26 may prevent such applications from being referred to the Minister. EFIC cannot provide a service or product covered by this section in those circumstances.

(5) Schedule 2, items 44 and 45, page 18 (lines 20 to 23), omit the items, substitute:

44 Subsection 63(3)

Omit "staff referred to in section 62", substitute "persons who have been employed by, or made available to, ARENA as referred to in section 61".

Sue Lines (President) | Link to this | Hansard source

I will now deal with the amendment circulated by the Australian Greens.

Nick McKim (Tasmania, Australian Greens) | Link to this | Hansard source

On indulgence, it's my understanding that this amendment is identical in terms to the amendment that we've just passed on sheet SK127, as they—this amendment by the Australian Greens and SK127 by the government—were both circulated within a couple of minutes of each other. If that is the case then I will seek leave to withdraw this amendment. But I'd just like it confirmed if possible that it is identical in terms.

Sue Lines (President) | Link to this | Hansard source

Thank you, Senator McKim. We're talking about the Greens amendments on sheet 3232. I am advised by the Clerk that, to the Clerk, they do look identical—if you're happy to proceed on that basis, Senator McKim.

Nick McKim (Tasmania, Australian Greens) | Link to this | Hansard source

by leave—I withdraw the Australian Greens amendments.

Sue Lines (President) | Link to this | Hansard source

I will now deal with the amendment circulated by Senator David Pocock. The question is that item 13 of schedule 1 stand as printed.

Senator Pocock opposed schedule 1 to the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 in the following terms

(1) Schedule 1, item 13, page 7 (lines 1 to 8), to be opposed.

Question agreed to.