Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 419 - Critical minerals  

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

SECTION 419-20.02   CMPTI PROCESSING ACTIVITY - GRAPHITE  
Kind of processing activity

419-20.02(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

419-20.02(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).