Future Made in Australia Act 2024

The Future Made in Australia Act 2024 (Cth) establishes the legislative architecture for state-directed capital allocation under the Commonwealth's industrial policy. Mechanically, the Act does not directly appropriate funds or establish new financial programs; instead, it acts as a regulatory and policy overlay that binds existing and future statutory funding authorities and Commonwealth corporations. The Act introduces the National Interest Framework under Part 2, which consists of two distinct streams: the net zero transformation stream and the economic resilience and security stream. This framework is designed to govern how the Commonwealth identifies, assesses, and prioritizes significant public investments aimed at unlocking private investment.

The Act establishes "sector assessments" under section 6. These are formal inquiries conducted by the Secretary of the Department, directed by the Minister, to determine whether a particular sector of the Australian economy aligns with the National Interest Framework and to identify barriers to private investment. Under Part 3, the Act imposes a statutory mandate on decision-makers who administer designated "Future Made in Australia support" (which includes grants, loans, indemnities, guarantees, warranties, and equity investments under section 10(2)). Specifically, section 10(1) requires these decision-makers to "have regard to" a set of "community benefit principles" when determining whether to allocate taxpayer-backed capital.

Furthermore, the Act introduces a compliance mechanism under section 11, requiring certain applicants and recipients of this support to implement and maintain a "Future Made in Australia plan." It also implements a strict statutory prohibition under section 10A, which debars any Future Made in Australia support from being provided for coal, crude oil, or natural gas extraction, related infrastructure, or direct financing of investments solely using these fossil fuels. Finally, section 11A establishes mandatory public reporting requirements, forcing Commonwealth entities and companies to disclose the names of funding recipients and the precise amounts of capital committed or provided.

meta-content-style-type: text/css meta-content-type: application/xhtml+xml; charset=utf-8

Commonwealth Coat of Arms of Australia

Future Made in Australia Act 2024

No. 119, 2024

An Act to unlock investment in a Future Made in Australia, and for related purposes

Contents

Part 1—Preliminary

1 Short title

2 Commencement

3 Objects

4 Simplified outline of this Act

5 Definitions

Part 2—National Interest Framework

6 Sector assessments

7 The National Interest Framework

8 Conduct of sector assessments

9 Reporting on sector assessments

Part 3—Provision of Future Made in Australia support

10 The community benefit principles

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

11 Future Made in Australia plans

11A Reporting on provision of Future Made in Australia support

12 Rules relating to provision of Future Made in Australia support

Part 4—Miscellaneous

13 Delegation by the Secretary

14 Annual report

15 Rules

Commonwealth Coat of Arms of Australia

Future Made in Australia Act 2024

No. 119, 2024

An Act to unlock investment in a Future Made in Australia, and for related purposes

[Assented to 10 December 2024]

Preamble

The Parliament of Australia recognises that the global transition to net zero and the changing geostrategic landscape present a significant opportunity for Australia. By building a more diversified and resilient economy powered by clean energy and creating more secure, well‑paid jobs, Australia can remain an indispensable part of the global economy as the world undergoes the biggest transformation since the industrial revolution.

Maximising the economic and industrial benefits of this transformation requires attracting and enabling private investment, making Australia a renewable energy superpower, value‑adding to our resources and strengthening economic security, backing Australian innovation and investing in the people, communities and services that will drive our national success.

The Parliament of Australia believes that the Australian Government can play a key role in encouraging and facilitating the private investment required to harness this opportunity and strengthen trade partnerships. Targeted public investment can also promote the alignment of economic incentives with Australia’s national interests and incentivise private investment at scale in these areas.

The National Interest Framework will support the Australian Government to make public investments that unlock private investment at scale in the national interest. It will help to assess sectors that can make a significant contribution to emissions reduction at an efficient cost and where Australia could have a sustained comparative advantage and sectors where domestic capability is necessary or efficient to deliver economic resilience and security.

Community benefit principles will be applied to encourage investment in local communities, domestic industries, supply chains and skills, and promote diverse workforces, secure jobs and tax law compliance. Decision‑makers will be responsible for applying community benefit principles for each Future Made in Australia support and enforcing them appropriately, including through Future Made in Australia plans.

The coordinated investments that make up the Future Made in Australia agenda will harness Australia’s potential and ensure the benefits are widely shared. This will be underpinned by strong trade partnerships, and a Guarantee of Origin Scheme that certifies renewable electricity and the emissions content of key industrial products and supports, supporting the development of green product standards.

As part of the Future Made in Australia agenda, a new front door will also be established to make it simpler to invest in Australia and attract more global and domestic capital. It will provide a single point of contact for investors and companies with major, transformational investment proposals, delivering a coordinated approach to investment attraction and facilitation for these projects.

The Parliament of Australia enacts:

Part 1—Preliminary

1 Short title

This Act is the Future Made in Australia Act 2024.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this Act The day after this Act receives the Royal Assent. 11 December 2024

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Objects

The objects of this Act are:

(a) to establish a National Interest Framework to support the consideration of, and decision‑making in relation to, significant public investment that unlocks private investment at scale in the national interest; and

(b) to enable the use of the National Interest Framework for sector assessments that analyse the extent to which particular sectors of the Australian economy are ones where:

(i) Australia could have a sustained comparative advantage in a net zero global economy and public investment is likely needed for the sector to make a significant contribution to emissions reduction at an efficient cost; or

(ii) some level of domestic capability is necessary or efficient to deliver economic resilience and security, and the private sector will not deliver the necessary investment in the sector in the absence of government support; and

(c) to ensure that the provision of Future Made in Australia support under other laws considers broad community benefits, in particular by:

(i) promoting safe and secure jobs that are well paid and have good conditions; and

(ii) developing more skilled and inclusive workforces, including by investing in training and skills development and broadening opportunities for workforce participation; and

(iii) engaging collaboratively with and achieving positive outcomes for local communities, such as First Nations communities and communities directly affected by the transition to net zero; and

(iiia) supporting First Nations communities and traditional owners to participate in, and share in the benefits of, the transition to net zero; and

(iv) strengthening domestic industrial capabilities, including through stronger local supply chains; and

(v) demonstrating transparency and compliance in relation to the management of tax affairs, including benefits received under Future Made in Australia supports.

4 Simplified outline of this Act

This Act establishes the National Interest Framework, a framework to support the consideration of, and decision‑making in relation to, significant public investment that unlocks private investment at scale in the national interest.

The National Interest Framework consists of the net zero transformation stream and the economic resilience and security stream.

The Minister may, after consulting appropriate Ministers, direct the Secretary to conduct a sector assessment. A sector assessment is an assessment of a sector of the Australian economy conducted for the purpose of analysing the extent to which the sector aligns with the National Interest Framework in one of those streams, as well as opportunities to address barriers to private investment, in the national interest, in relation to the sector.

A person or body deciding whether certain support (known as Future Made in Australia support) should be provided by the Commonwealth, a Commonwealth entity or a Commonwealth company must have regard to the community benefit principles. Such support may include a grant, loan, indemnity, guarantee, warranty, investment of money or equity investment.

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;

An applicant for, or recipient of, Future Made in Australia support must have a Future Made in Australia plan in effect in the circumstances prescribed by rules made under this Act.

5 Definitions

In this Act:

Australia’s greenhouse gas emissions reduction targets means:

(a) if:

(i) Australia’s current nationally determined contribution was communicated in accordance with Article 4 of the Paris Agreement in June 2022; and

(ii) that nationally determined contribution has not been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement;

the greenhouse gas emissions reduction targets set out in paragraphs 10(1)(a) and (b) of the Climate Change Act 2022; or

(b) in any other case—the greenhouse gas emissions reduction targets included in:

(i) Australia’s current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or

(ii) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.

Commonwealth company has the same meaning as in the Public Governance, Performance and Accountability Act 2013.

Commonwealth entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.

community benefit principles: see subsection 10(3).

Future Made in Australia Innovation Fund means the program of financial assistance known by that name that is administered by the Australian Renewable Energy Agency under the Australian Renewable Energy Agency Act 2011.

Future Made in Australia plan: see section 11.

Future Made in Australia support: see subsection 10(2).

National Interest Framework means the National Interest Framework established by section 7.

net zero transformation means achieving Australia’s greenhouse gas emissions reduction targets and contributing to the reduction of global greenhouse gas emissions.

Paris Agreement means the Paris Agreement done at Paris on 12 December 2015, as amended and in force for Australia from time to time.

Note: The Paris Agreement is in Australian Treaty Series 2016 No. 24 ([2016] ATS 24) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

personal information has the same meaning as in the Privacy Act 1988.

rules means rules made under subsection 15(1).

Secretary means the Secretary of the Department.

sector assessment: see subsection 6(2).

Part 2—National Interest Framework

6 Sector assessments

(1) The Minister may, by notifiable instrument, direct the Secretary to conduct a sector assessment.

(2) A sector assessment is an assessment of a sector of the Australian economy that analyses:

(a) the extent to which the sector aligns with the National Interest Framework under subsection 7(3) or (4); and

(b) opportunities to address barriers to private investment, in the national interest, in relation to the sector.

(3) Before giving a direction under subsection (1), the Minister must consult such Ministers as the Minister considers appropriate.

(4) Without limiting subsection (1), a direction under that subsection may specify the period within which the sector assessment is to be conducted or a report on the assessment is to be given to the Minister (see section 9).

(5) To avoid doubt, subsection (1) applies whether or not a sector assessment has previously been conducted for the sector.

7 The National Interest Framework

(1) The National Interest Framework is established by this section.

(2) The National Interest Framework has the following streams:

(a) the net zero transformation stream;

(b) the economic resilience and security stream.

The net zero transformation stream

(3) A sector of the Australian economy aligns with the National Interest Framework in the net zero transformation stream if:

(a) the sector could have a sustained comparative advantage in a net zero global economy; and

(b) public investment is likely to be needed for the sector to make a significant contribution to emissions reduction at an efficient cost.

The economic resilience and security stream

(4) A sector of the Australian economy aligns with the National Interest Framework in the economic resilience and security stream if:

(a) some level of domestic capability in the sector is a necessary or efficient way to deliver economic resilience and security; and

(b) the private sector will not deliver the necessary investment in the sector in the absence of government support.

8 Conduct of sector assessments

Matters to be considered

(1) A sector assessment must consider such of the following matters as the Secretary considers relevant to the conduct of the assessment:

(a) whether Australia could be competitive in the sector;

(b) whether the sector could contribute to an orderly path to net zero transformation, including through the use of renewable energy;

(c) whether the sector could build the capabilities of the Australian people and the regions of Australia, and generate employment opportunities;

(d) whether support for the sector could improve Australia’s economic resilience and security;

(e) whether support for the sector could:

(i) recognise the key role of the private sector; and

(ii) deliver genuine value for money.

(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.

Ministerial directions

(2) The Minister may, by legislative instrument, give directions to the Secretary in relation to the conduct of sector assessments.

(3) The directions may include consultation requirements for sector assessments, including requirements in relation to the following:

(a) public consultation;

(b) periods for consultation.

Assessment to be conducted independently

(4) The Minister must not:

(a) give directions under subsection (2) to the Secretary in relation to a particular sector assessment; or

(b) seek to influence a particular sector assessment in any other way.

(5) To avoid doubt, this section does not limit the application of subsection 33(3) of the Acts Interpretation Act 1901 in relation to an instrument made under this Act.

Assistance with sector assessments

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

(a) consult with any Commonwealth entity; or

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

Note: The Commonwealth entities the Secretary 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;

(d) Infrastructure Australia;

(e) the Net Zero Economy Agency;

(f) the Productivity Commission.

9 Reporting on sector assessments

(1) After conducting a sector assessment, the Secretary must give the Minister a report on the assessment.

(2) The Minister must cause a copy of the report to be laid before each House of the Parliament within 30 sitting days of that House after the Minister receives the report.

(3) The Minister may redact information from the report if the Minister is satisfied that:

(a) the information is personal information; or

(b) release of the information would, or could reasonably be expected to:

(i) divulge information that is confidential or commercially sensitive; or

(ii) cause damage to the security, defence or international relations of the Commonwealth; or

(iii) cause damage to relations between the Commonwealth and a State or Territory.

Part 3—Provision of Future Made in Australia support

10 The community benefit principles

(1) A person or body deciding whether Future Made in Australia support should be provided must have regard to the community benefit principles.

(2) Future Made in Australia support is any support provided by the Commonwealth, a Commonwealth entity or a Commonwealth company (including a grant, loan, indemnity, guarantee, warranty, investment of money or equity investment) in relation to which one or more of the following apply:

(a) the support is provided under the Future Made in Australia Innovation Fund;

(b) the support is provided by the Export Finance and Insurance Corporation:

(i) under section 23B of the Export Finance and Insurance Corporation Act 1991; or

(ii) otherwise for the purpose of performing its functions under paragraph 7(1)(df) or (dg) of that Act (which set out the Corporation’s national economy function and net zero function);

(d) the support is prescribed by the rules for the purposes of this paragraph.

Note: Future Made in Australia support will be provided under other laws.

(3) The community benefit principles are:

(a) that Future Made in Australia support should provide community benefits, in particular by:

(i) promoting safe and secure jobs that are well paid and have good conditions; and

(ii) developing more skilled and inclusive workforces, including by investing in training and skills development and broadening opportunities for workforce participation; and

(iii) engaging collaboratively with and achieving positive outcomes for local communities, such as First Nations communities and communities directly affected by the transition to net zero; and

(iiia) supporting First Nations communities and traditional owners to participate in, and share in the benefits of, the transition to net zero; and

(iv) strengthening domestic industrial capabilities, including through stronger local supply chains; and

(v) demonstrating transparency and compliance in relation to the management of tax affairs, including benefits received under Future Made in Australia supports; and

(b) any other principles specified in the rules for the purposes of this paragraph.

(4) Subsection (1) does not apply to the provision of Future Made in Australia support under a particular law:

(a) to the extent that having regard to the community benefit principles would be inconsistent with that law; or

(b) in circumstances prescribed by the rules for the purposes of this paragraph.

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;

11 Future Made in Australia plans

(1) A person who applies for, or receives, Future Made in Australia support must, in the circumstances prescribed by the rules, have in effect a plan (a Future Made in Australia plan) that:

(a) relates to the support; and

(b) meets the requirements of subsection (2).

(2) A Future Made in Australia plan must:

(a) be in writing; and

(b) explain how the Future Made in Australia support would provide community benefits consistent with the community benefit principles; and

(3) The rules may provide in relation to Future Made in Australia plans, including circumstances in which such a plan comes into effect or ceases to be in effect.

11A Reporting on provision of Future Made in Australia support

Reporting by Commonwealth entities

(1) The accountable authority of a Commonwealth entity must ensure that an annual report prepared under section 46 of the Public Governance, Performance and Accountability Act 2013 for a reporting period for the entity complies with subsection (3) of this section if the entity provides Future Made in Australia support (including on behalf of the Commonwealth) during the period.

Reporting by Commonwealth companies

(2) The directors of a Commonwealth company must ensure that the documents given to the responsible Minister under section 97 of the Public Governance, Performance and Accountability Act 2013 for a reporting period for the company include a report that complies with subsection (3) of this section if the company provides Future Made in Australia support during the period.

Content of report

(3) A report described in subsection (1) or (2) that relates to a Commonwealth entity or Commonwealth company must include:

(a) for each person to whom the entity or company provides or commits Future Made in Australia support during the reporting period:

(i) the name of the person; and

(ii) the amount of support provided or committed in the reporting period; and

(b) the amount of all Future Made in Australia support provided or committed by the entity or company in the reporting period.

Definitions

(4) The following expressions have the same meaning when used in this section as they have in the Public Governance, Performance and Accountability Act 2013:

(a) accountable authority;

(b) director;

Note: See also the definitions of Commonwealth entity and Commonwealth company in section 5 of this Act.

Application

(5) Subsections (1) and (2) apply in relation to a reporting period that ends on or after the commencement of this section.

12 Rules relating to provision of Future Made in Australia support

(1) The rules may prescribe requirements that must be complied with, methods or criteria that must be applied, or matters that may, must or must not be taken into account, in:

(a) applying for Future Made in Australia support; or

(b) deciding whether Future Made in Australia support should be provided; or

Note: The rules may make different provision for different kinds of Future Made in Australia support: see subsection 33(3A) of the Acts Interpretation Act 1901.

(2) However, rules made for the purposes of subsection (1) have no effect in relation to the provision of Future Made in Australia support under a particular law to the extent that the rules are inconsistent with that law.

(3) Sections 11 and 11A do not limit this section.

Part 4—Miscellaneous

13 Delegation by the Secretary

(1) The Secretary may, in writing, delegate to an SES employee, or an acting SES employee, in the Department all or any of the Secretary’s functions or powers under Part 2 of this Act relating to sector assessments.

Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.

(2) In performing a delegated function or exercising a delegated power, the delegate must comply with any written directions of the Secretary.

14 Annual report

The annual report prepared by the Secretary of the Department and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include a report on the operation of this Act during the period.

15 Rules

(1) The Minister may, by legislative instrument, make rules prescribing matters:

(a) required or permitted by this Act to be prescribed by the rules; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.

(2) To avoid doubt, the rules may not do the following:

(a) create an offence or civil penalty;

(b) provide powers of:

(i) arrest or detention; or

(ii) entry, search or seizure;

(d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

(e) directly amend the text of this Act.

[Minister’s second reading speech made in—

House of Representatives on 3 July 2024

Senate on 11 September 2024]

(84/24)

meta-content-style-type: text/css meta-content-type: application/xhtml+xml; charset=utf-8

Future Made in Australia Act 2024

No. 119, 2024

An Act to unlock investment in a Future Made in Australia, and for related purposes

Contents

Part 1—Preliminary

1 Short title

2 Commencement

3 Objects

4 Simplified outline of this Act

5 Definitions

Part 2—National Interest Framework

6 Sector assessments

7 The National Interest Framework

8 Conduct of sector assessments

9 Reporting on sector assessments

Part 3—Provision of Future Made in Australia support

10 The community benefit principles

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

11 Future Made in Australia plans

11A Reporting on provision of Future Made in Australia support

12 Rules relating to provision of Future Made in Australia support

Part 4—Miscellaneous

13 Delegation by the Secretary

14 Annual report

15 Rules

Future Made in Australia Act 2024

No. 119, 2024

An Act to unlock investment in a Future Made in Australia, and for related purposes

[Assented to 10 December 2024]

Preamble

To understand the legal operation of the Act, one must master several novel statutory concepts.

The "National Interest Framework" (established under section 7) is the analytical core of the legislation. It is split into two streams:

The net zero transformation stream (section 7(3)) requires a dual showing: first, that the target sector could achieve a "sustained comparative advantage in a net zero global economy" and, second, that public investment is "likely to be needed" for the sector to make a significant contribution to emissions reduction at an "efficient cost."
The economic resilience and security stream (section 7(4)) also requires a dual showing: first, that some level of domestic capability in the sector is a "necessary or efficient way to deliver economic resilience and security" and, second, that the private sector "will not deliver" the necessary investment in the absence of government support.

A "Sector Assessment" (defined in section 6(2)) is the formal mechanism used to evaluate these criteria. Conducted by the Secretary of the Department, these assessments must weigh various statutory criteria set out in section 8, including international competitiveness, orderly net zero transition pathways, regional employment generation, value for money, and, critically, under section 8(1A), the sector's impact on fossil fuel demand and global supply chain decarbonisation.

"Future Made in Australia Support" (defined in section 10(2)) identifies the specific funding channels captured by this Act. It includes any financial assistance provided under the Future Made in Australia Innovation Fund (administered by the Australian Renewable Energy Agency), export finance support provided by the Export Finance and Insurance Corporation (EFIC) under its national economy or net zero functions, or any other support prescribed by the rules or identified under other Commonwealth laws.

The "Community Benefit Principles" (set out in section 10(3)) are the socio-economic conditions attached to this support. They demand that funded projects promote safe, secure, and highly paid jobs with good conditions; invest in workforce training and inclusive participation; deliver positive outcomes for local communities (including First Nations traditional owners); strengthen local supply chains; and demonstrate tax transparency and compliance.

A "Future Made in Australia Plan" (section 11) is the operational compliance document. It is a written instrument that explains how an applicant or recipient of support will deliver benefits consistent with the community benefit principles.

The Act directly impacts three primary groups: Commonwealth agencies and corporations, private sector market participants seeking public capital, and the broader Australian administrative and economic ecosystem.

First, the Act affects Commonwealth entities and companies that administer public finance. Key entities such as the Australian Renewable Energy Agency (ARENA) and the Export Finance and Insurance Corporation (EFIC) must restructure their assessment and decision-making processes. Board members, trustees, and delegated decision-makers within these bodies must now incorporate "community benefit principles" into their risk and allocation frameworks. These agencies also face intensive annual reporting obligations under section 11A, requiring detailed public disclosures that expose their investment activities to parliamentary and media scrutiny.

Second, the Act affects private sector corporations, developers, and joint ventures in sectors such as green hydrogen, critical minerals, advanced manufacturing, and clean energy technology. To access Commonwealth capital, these commercial actors must take on significant administrative and compliance burdens. They must draft, implement, and maintain "Future Made in Australia plans" (section 11) that bind their industrial relations, procurement, tax planning, and community engagement strategies to the government's prescribed social policy outcomes. Conversely, companies operating in the coal, crude oil, or natural gas sectors are shut out of these funding pools entirely by virtue of the strict exclusions in section 10A.

Third, local communities, regional workforces, and First Nations traditional owners are heavily affected. The Act elevates these groups to statutory stakeholders. By embedding local engagement and First Nations benefit-sharing directly into the funding criteria under section 10(3), the Act alters the bargaining dynamics between project developers and local communities. This creates both opportunities for regional development and potential bottlenecks for project delivery if local agreements cannot be quickly concluded.

The Act establishes several critical statutory duties, while remaining notably sparse on the creation of private rights.

The primary duty under the Act falls on funding decision-makers. Section 10(1) dictates that a person or body deciding whether Future Made in Australia support should be provided "must have regard to the community benefit principles." In administrative law, the phrase "must have regard to" requires the decision-maker to give active, highly relevant, and realistic consideration to the principles; it cannot be a mere box-ticking exercise. However, section 10(4) provides a carve-out: this duty does not apply if having regard to the principles would be "inconsistent" with the underlying law governing the support, or under other circumstances prescribed by the rules.

Applicants and recipients of support bear the duty of maintaining a "Future Made in Australia plan" in writing under section 11, explaining exactly how their project aligns with the community benefit principles. This duty is triggered "in the circumstances prescribed by the rules," meaning the exact threshold for when a plan is required remains at the discretion of executive rule-makers.

The Secretary of the Department is bound by a duty under section 8 to consider specific matters when conducting a sector assessment, including the mandatory considerations inserted under section 8(1A) regarding fossil fuel demand and global supply chain decarbonisation. Under section 9, the Secretary has a duty to provide a report on the assessment to the Minister.

The Minister bears a duty under section 9(2) to table a copy of the Secretary's sector assessment report before each House of Parliament within 30 sitting days of receipt. The Minister also has a discretionary power under section 9(3) to redact personal, confidential, or commercially sensitive information from these reports before tabling. Under section 8(4), the Minister is subject to a statutory prohibition: the Minister "must not" give directions to the Secretary in relation to a particular sector assessment or seek to influence its outcome, preserving the structural independence of the assessment process.

No private rights of action or statutory entitlements to receive funding are created under this Act. Private entities have no "right" to a sector assessment, nor do they have a statutory right to obtain support simply by complying with the community benefit principles.

A striking feature of the Future Made in Australia Act 2024 is its total lack of traditional civil or criminal penalty provisions within the text of the primary statute. Indeed, section 15(2)(a) explicitly debars the Minister from making rules that "create an offence or civil penalty." Similarly, section 15(2)(b) prevents the rules from providing powers of arrest, detention, entry, search, or seizure.

Instead, enforcement of the Act’s mandates relies on administrative, contractual, and reputational mechanisms:

Administrative Disqualification: The primary mechanism to enforce compliance with the "community benefit principles" and the "Future Made in Australia plans" is the withholding of capital. Under section 11(1), a person must have a plan in effect in prescribed circumstances. Failure to draft, implement, or maintain an active plan that satisfies the rules will result in an applicant being deemed ineligible for funding.
Contractual Recourse: Because Future Made in Australia support is delivered via grants, loans, and equity investments under other enabling Acts, the requirements of a recipient’s "Future Made in Australia plan" will be translated into binding covenants within funding agreements. A failure to deliver on these plans (such as failing to provide secure jobs, train local workforces, or comply with tax transparency covenants) will trigger contractual default provisions, potentially resulting in funding suspension, contract termination, or capital clawbacks.
Reputational Enforcement (Naming and Shaming): Section 11A acts as a powerful transparency and enforcement tool. By requiring the accountable authorities of Commonwealth entities and the directors of Commonwealth companies to publish the names of all support recipients and the exact quantum of funds committed or provided, the Act exposes non-compliant or controversial recipients to immediate public, parliamentary, and media scrutiny.
Administrative Law Challenges: The statutory duty under section 10(1) that decision-makers "must have regard to" the community benefit principles means that decisions to grant or deny support are highly vulnerable to judicial review. If a decision-maker fails to properly consider these principles, disappointed applicants or public interest groups may seek to have the decision set aside for jurisdictional error in the Federal Court of Australia.

The Act does not operate in a vacuum; it is designed as an overlay that intersects with several other core Commonwealth statutes.

First, it integrates directly with the Public Governance, Performance and Accountability Act 2013 (the PGPA Act). The definitions of "Commonwealth entity" and "Commonwealth company" in section 5 are explicitly imported from the PGPA Act. More importantly, the reporting mandates under section 11A are designed to piggyback on the annual reporting cycles established under sections 46 and 97 of the PGPA Act.

Second, the Act directly interacts with the statutory regimes of existing Commonwealth funding vehicles. Section 10(2) explicitly captures support provided under the Australian Renewable Energy Agency Act 2011 (specifically the Future Made in Australia Innovation Fund) and support provided by the Export Finance and Insurance Corporation under the Export Finance and Insurance Corporation Act 1991 (specifically under section 23B or relating to its national economy and net zero functions). Crucially, the Act acknowledges potential statutory conflicts. Sections 10(4)(a) and 12(2) provide that if any community benefit principles or rule-based requirements are "inconsistent" with the underlying law under which the support is provided, the underlying law prevails. This prevents the FMIA overlay from inadvertently causing a decision-maker to act ultra vires their primary statutory objects.

Third, the Act aligns with the Climate Change Act 2022. The definition of "Australia’s greenhouse gas emissions reduction targets" in section 5 points directly to the targets set out in paragraphs 10(1)(a) and (b) of the Climate Change Act 2022, or any adjusted targets communicated under the Paris Agreement. This binds the "net zero transformation stream" of the National Interest Framework to Australia's international climate commitments.

Lastly, the Act interacts with the Privacy Act 1988. Section 5 imports the definition of "personal information" from the Privacy Act, which works in tandem with section 9(3)(a) to protect individuals by allowing the Minister to redact personal information from sector assessment reports before they are tabled in Parliament.

The Future Made in Australia Act 2024 is a brand-new, principal enactment of the Commonwealth Parliament. It was passed as Act No. 119 of 2024. The bill was assented to on 10 December 2024, and the entirety of the Act commenced on 11 December 2024 (the day after Royal Assent), as set out in the commencement table in section 2.

Because of its very recent enactment, there is no subsequent history of formal amending acts. However, the legislative journey of the Act reveals the political and structural compromises that shaped its final text:

The Bill was first introduced into the House of Representatives on 3 July 2024.
It was subsequently introduced into the Senate on 11 September 2024.
During its passage through Parliament, several significant amendments were integrated into the final text to secure passage. Key among these was the inclusion of section 10A, which imposes a strict prohibition on providing any Future Made in Australia support to coal, crude oil, or natural gas projects. This was a crucial legislative compromise designed to satisfy climate-focused independent and minor-party senators who insisted that public capital intended for a "Future Made in Australia" must not subsidise fossil fuel extraction or use.
Additionally, section 8(1A) was added to ensure that sector assessments must explicitly evaluate a sector's impact on fossil fuel demand and global supply chain decarbonisation. This amendment transformed the sector assessment process from a simple economic analysis into an active decarbonisation assessment tool.

Given that the Act received Royal Assent on 10 December 2024 and commenced on 11 December 2024, there is no history of judicial interpretation or litigation in Australian courts regarding its provisions.

However, looking forward, the text of the Act contains several high-risk vectors that are highly likely to generate administrative law litigation. The primary legal battleground will center on the statutory construction of section 10(1) and the application of the "community benefit principles":

Jurisdictional Error and the Duty to "Have Regard to": The phrase "must have regard to" in section 10(1) is a common source of judicial review under the Administrative Decisions (Judicial Review) Act 1977 (Cth). If a Commonwealth agency grants funding to a major green hydrogen or critical minerals project, and a disappointed competitor or a trade union can show that the decision-maker failed to properly consider whether the project promoted "safe and secure jobs" or "tax transparency" under section 10(3), the funding decision could be challenged in the Federal Court for jurisdictional error.
The Inconsistency Dispute (Section 10(4)): Section 10(4) states that the duty to consider community benefit principles does not apply to the extent that it would be "inconsistent" with the underlying funding law. This "inconsistency" exception is ripe for litigation. If an agency like EFIC refuses funding to a project because the developer's "Future Made in Australia plan" is deemed inadequate, the developer could challenge the refusal in court, arguing that EFIC's primary statutory functions (which prioritize commercial viability and national economic benefit) do not permit the application of social-policy conditions, thereby creating an "inconsistency" under section 10(4) that should have nullified the requirement.

For corporate executives, legal counsel, and compliance officers, the Act contains several hidden pitfalls and structural complexities (or "gotchas") that require careful navigation.

The "Inconsistency" Ambiguity (Section 10(4) and Section 12(2))
The Act states that the community benefit principles (section 10(4)) and any rules made under the Act (section 12(2)) have no effect to the extent they are "inconsistent" with the underlying law under which support is provided. However, the Act provides no guidance on what constitutes an "inconsistency." Is a social conditioning requirement (such as a union-backed wage standard) "inconsistent" with an agency’s mandate to invest commercially, or is it merely an additional administrative step? This ambiguity leaves both funding agencies and private applicants in a state of legal uncertainty, exposing funding decisions to administrative challenges.

The Fossil Fuel Boundary Risk (Section 10A)
The absolute prohibition on funding coal, oil, and gas projects contains a major grey area. While section 10A(a) clearly bans extraction, section 10A(b) bans infrastructure built for the "primary purpose" of extracting fossil fuels, and section 10A(c) bans financing investments for the "sole purpose" of the use of fossil fuels. The use of terms like "primary purpose" and "sole purpose" creates a compliance minefield. For example, if a company builds a clean energy park that includes a natural gas backup generator, or a pipeline designed for hydrogen blending that initially carries natural gas, does this cross the statutory line? A conservative legal reading could stall hybrid or transition projects due to the risk of violating section 10A.

The Independent Assessment Illusion (Section 8(4))
While section 8(4) proudly declares that the Minister must not seek to influence a particular sector assessment, this independence is limited. Under section 6(1), the Secretary cannot initiate a sector assessment on their own; they can only do so upon a written direction from the Minister. Thus, while the conduct of the assessment is structurally independent, the gatekeeping mechanism remains entirely political. The Minister retains absolute control over which sectors are selected for evaluation and which are ignored, opening the door to political favoritism and rent-seeking.

Commercial Disclosure and Redaction Risk (Section 9(3))
Under section 9, sector assessment reports must be tabled in Parliament. While section 9(3) allows the Minister to redact confidential or commercially sensitive information, this power is completely discretionary ("the Minister may redact... if the Minister is satisfied"). Private companies participating in these assessments must share highly sensitive data regarding supply chains, costs, and technology. If the Minister disagrees on what constitutes "confidential" information, or if political pressure demands full transparency, proprietary corporate data could be exposed to competitors through the tabling of the report.

To ensure compliance with the Future Made in Australia Act 2024, corporate applicants, legal advisors, and Commonwealth decision-makers must adopt a systematic, proactive compliance strategy.

For Corporate Applicants and Funding Recipients:

Monitor the Delegated Legislation (Rules)
Because many of the operational details (including when a "Future Made in Australia plan" is required under section 11(1) and its precise contents under section 11(2)(c)) are left to ministerial rules, compliance teams must establish a continuous monitoring program for legislative instruments made under section 15. Do not rely solely on the primary Act; the rules will dictate the actual compliance thresholds.
Develop a Proactive "Community Benefit Alignment" Strategy
Before applying for support from ARENA, EFIC, or other FMIA-designated programs, compile a comprehensive internal report addressing each of the community benefit principles in section 10(3). This report should document:
- Industrial relations policies that guarantee secure, well-paid jobs with safe conditions (section 10(3)(a)(i)).
- Workforce development, apprenticeships, and training partnerships, with a focus on local and First Nations participation (section 10(3)(a)(ii) and (iiia)).
- Local procurement plans that strengthen domestic supply chains (section 10(3)(a)(iv)).
- Corporate tax structures that demonstrate transparency and compliance, including public disclosures of any tax benefits received (section 10(3)(a)(v)).
Draft a Robust "Future Made in Australia Plan"
Once the rules prescribe that a plan is required, draft a formal, written document that addresses all statutory and rule-based requirements under section 11. Ensure this plan is signed off by senior executive management and integrated into the project's key performance indicators (KPIs), as it will likely be incorporated into the funding agreement as a binding contractual covenant.
Perform a Clean Energy Separation Audit
If your project has any connection to fossil fuels (such as transition gas or shared infrastructure), conduct a rigorous legal and technical audit to ensure you do not trigger the prohibitions in section 10A. Document that the "primary purpose" of any infrastructure is not fossil fuel extraction and that no funding will be used for the "sole purpose" of fossil fuel consumption.

For Commonwealth Entities and Decision-Makers:

Update Assessment Guidelines and Board Charters
Formalise the requirement to "have regard to" the community benefit principles (section 10(1)) by embedding them directly into your agency’s investment evaluation frameworks, risk registers, and board charters.
Document the Decision-Making Process
To protect decisions from administrative law challenges, decision-makers must carefully document how they considered the community benefit principles. If certain principles were disregarded because they were "inconsistent" with your agency's enabling legislation, clearly record the legal reasoning supporting this inconsistency under section 10(4)(a).
Establish PGPA Act Reporting Frameworks
Set up internal reporting systems to capture the name of each recipient, the amount of support provided or committed during the reporting period, and the total support provided (section 11A). This data must be ready for seamless integration into your agency's annual report under section 46 or section 97 of the PGPA Act.

Future Made in Australia Act 2024

Plain English Summary

Deep Dive

What it does

Current sections