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 419-20.03   CMPTI PROCESSING ACTIVITY - PRECURSOR CATHODE ACTIVE MATERIAL  
Kind of processing activity

419-20.03(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

419-20.03(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).