Income Tax Assessment (1997 Act) Amendment (Critical Minerals) Regulations 2025 (F2025L01509)

Schedule 1   Amendments

Income Tax Assessment (1997 Act) Regulations 2021

1   At the end of Part 3-45

Add:

Division 419 - Critical minerals

Subdivision 419-A - Tax offset for expenditure for producing critical minerals in Australia

419-20.01 CMPTI processing activity - high purity alumina

Kind of processing activity

(1) For the purposes of subparagraph 419-20(1)(b)(ii) of the Act, a processing activity is prescribed if it is of a kind that:

(a) substantially transforms a feedstock containing aluminium through extractive metallurgical processing; or

(b) is not beneficiation (including grinding, crushing, floating and other mechanical processing); and

(c) is not manufacturing.

Outcome of processing activity

(2) For the purposes of subparagraph 419-20(1)(b)(iii) of the Act, a kind of outcome for this kind of processing activity is where high purity alumina with a purity of at least 99.99% is produced.

Note: For the processing activity to be a CMPTI processing activity, a substantial purpose for carrying on the processing activity must be to achieve the outcome mentioned in this subsection (see paragraph 419-20(1)(b) of the Act).

419-20.02 CMPTI processing activity - graphite

Kind of processing activity

(1) For the purposes of subparagraph 419-20(1)(b)(ii) of the Act, a processing activity is prescribed if it is of a kind that:

(a) substantially transforms a feedstock containing graphite by using chemical or thermal purification; or

(b) involves:

(i) the high-velocity collision of particles that are agitated using compressed air or gas; and

(ii) a feedstock containing particles of graphite; or

(c) shapes the particles of graphite in a feedstock;

and it is neither beneficiation (including grinding, crushing, floating and other mechanical processing) nor manufacturing.

Outcome of processing activity

(2) For the purposes of subparagraph 419-20(1)(b)(iii) of the Act, the following kinds of outcome are prescribed:

(a) for the kind of processing activity mentioned in paragraph (1)(a) of this section - the total graphitic carbon content of the feedstock is increased;

(b) for the kind of processing activity mentioned in paragraph (1)(b) of this section - the particles of graphite have a substantially reduced size;

(c) for the kind of processing activity mentioned in paragraph (1)(c) of this section - the particles of graphite have a substantially more spherical shape.

Note: For the processing activity to be a CMPTI processing activity, a substantial purpose for carrying on the processing activity must be to achieve the relevant outcome mentioned in this subsection (see paragraph 419-20(1)(b) of the Act).

419-20.03 CMPTI processing activity - precursor cathode active material

Kind of processing activity

(1) For the purposes of subparagraph 419-20(1)(b)(ii) of the Act, a processing activity is prescribed if it is of a kind that:

(a) substantially transforms a feedstock containing one or more critical minerals into an output that is chemically distinct from the feedstock; and

(b) is not beneficiation (including grinding, crushing, floating and other mechanical processing); and

(c) is not manufacturing.

Outcome of processing activity

(2) For the purposes of subparagraph 419-20(1)(b)(iii) of the Act, a kind of outcome for this kind of processing activity is where:

(a) precursor cathode active material is produced; and

(b) the material contains one or more critical minerals; and

(c) the material is suitable for use in the manufacturing of cathode active material for lithium-ion batteries.

Note: For the processing activity to be a CMPTI processing activity, a substantial purpose for carrying on the processing activity must be to achieve the outcome mentioned in this subsection (see paragraph 419-20(1)(b) of the Act).