The federal government has again lowered the amount of money big polluters need to spend on clean-technology projects to receive commonwealth cash.
Under changes to a $1 billion program, manufacturers liable to pay Labor’s controversial carbon tax can now access dollar-for-dollar grants, where previously they had to spend up to $3 for every $1 in assistance.
“The change in the clean-technology investment programs’ grant ratio has been made after detailed consultations with industry,” Climate Change Minister Greg Combet said in a statement on Tuesday.
Manufacturers that emit between 25,000 and 100,000 tonnes of greenhouse gases each year will be able to access dollar-for-dollar grants to purchase new equipment and update processes that cut their carbon footprint.
Previously only companies applying for grants of up to $500,000 received such generous assistance.
Businesses applying for all other grants under $10 million were required to contribute $2 for every $1 from the government. For grants of $10 million or more, at least $3 needed to be contributed for each $1 received.
The Australian Industry Group says allowing liable entities to seek 1:1 funding for large projects means they’ll be able to make improvements that will mean they pay less carbon tax.
“The more favourable ratio of carbon grant now available to more businesses can help make the difference between a good idea that sits in the bottom drawer and a capital upgrade that sets a manufacturer up for long-term viability,” Ai Group chief executive Innes Willox said in a statement.
The first businesses to benefit from the $1 billion clean-technology program included an insulation maker, an aluminium can plant and a number of wineries.
Thirteen grants worth a total $8.1 million were announced in June. They attracted co-investments of $23 million.
