Australians should receive some of the wealth generated by the federal government's major manufacturing plan, a union urges.
Mining giants, business groups, unions and clean energy associations will on Thursday front a parliamentary inquiry on part of Labor's $22.7 billion Future Made in Australia proposal about hydrogen and critical minerals production tax incentives.
The manufacturing package - which aims to fund clean energy projects and create jobs in the decarbonisation transition - has received broad support across industries, with many viewing its tax incentives as necessary to keep Australia competitive on the world stage.
But it must be legislated in a way that ensures no one is left behind, the Australian Council Of Trade Unions has said.
"Australia cannot risk a disproportionate majority of the wealth generated by these new clean industries accruing to foreign shareholders as opposed to the Australian public," its submission read.
"It is therefore essential to eliminate any loopholes."
The Future Made in Australia bill includes community benefit principles, which would require participating organisations to promote safe jobs, develop skilled workforces and achieve positive outcomes for local communities.
Though the Minerals Council of Australia has welcomed the legislation, it has labelled these principles as "unnecessary and duplicative".
"There are already extensive and rigorous approvals processes that mining and mineral processing projects must adhere to," its submission said.
The Association of Mining and Exploration Companies has echoed similar concerns.
"Australia cannot stand still, and the (production tax incentive) is an essential measure to bring us somewhere into realms of competitiveness," its submission said.
"It is, however, not a 'silver bullet' or panacea."
While the plan will reduce production costs, Australia still has long approvals time frames, land access issues and high construction costs - which would have to be addressed through other means.
However, the Centre for Policy Development has recommended tax incentives be increased for projects that give local community and Indigenous groups a voice, set up in low socio-economic communities and ensure vulnerable households are not harmed.
"There is an opportunity for Australia to ... ensure that in supporting new industries for Australian communities, the (critical minerals production tax incentive) does not inadvertently support injustices in the communities," its submission said.
