Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 419 - Critical minerals (tax offset for Australian production expenditure)  

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

SECTION 419-20   Meaning of CMPTI processing activity  

419-20(1)    
A CMPTI processing activity is a processing activity carried on at one or more facilities in Australia that:

(a)    involves substantially transforming a feedstock containing a * critical mineral through extractive metallurgical processing into a purer or more refined form of the critical mineral that is chemically distinct from the feedstock; or

(b)    is a processing activity that:

(i) relates to one or more critical minerals; and

(ii) is of a kind prescribed by the regulations; and

(iii) produces an outcome of a kind prescribed by the regulations;

if a substantial purpose for carrying on the activity is to achieve the transformation mentioned in paragraph (a) or the outcome mentioned in paragraph (b) (as applicable).

Note:

To be relevant for the tax offset, the activity will need to be:

(a) registered (see paragraph 419-5(1)(c) ); and

(b) carried on at one or more of the facilities specified in the certificate of registration for the activity (see paragraph 419-25(1)(a) ).

419-20(2)    
However, none of the following activities is a CMPTI processing activity :

(a)    mining;

(b)    beneficiation (including the grinding, crushing, floating and other mechanical processing of ores), except to the extent that such an activity is prescribed for the purposes of paragraph (1)(b) ;

(c)    manufacturing, except to the extent that such an activity is prescribed for the purposes of paragraph (1)(b) ;

(d)    an activity that is contrary to an * Australian law;

(e)    an activity of a kind prescribed by the regulations.

Note:

Since subsection (1) is subject to this subsection, an activity that could be covered by both paragraphs (1)(b) and (2)(e) will not be a CMPTI processing activity.