Document ID: chunk:federal_register_of_legislation:C2025A00009:clause:2_1:p1
Version: federal_register_of_legislation:C2025A00009
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 1/17)
Character Range: 52551–55448

1  At the end of Part 3‑45
Add:

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

Table of Subdivisions
 Guide to Division 419
419‑A Tax offset for expenditure for producing critical minerals in Australia
419‑B CMPTI expenditure
419‑C Registering activities and facilities for the CMPTI tax offset
419‑D Integrity rules
419‑E Review of certain decisions
419‑F Other matters

Guide to Division 419

419‑1  What this Division is about

      Companies may be entitled to a refundable tax offset for expenditure incurred in carrying on processing activities at facilities in Australia that substantially transform feedstock containing critical minerals into purer or more refined forms of the critical minerals that are chemically distinct from the feedstock.
      This offset is designed to support the growth of these processing activities in Australia.
      One of the requirements for entitlement to the tax offset is for a company to hold a registration certificate for these processing activities and for the Australian facilities where the activities are to be carried on. The Industry Secretary will decide whether to issue the certificates. A registration can be in force for 10 income years during the period starting on 1 July 2027 and ending on 30 June 2040.
      The amount of the tax offset is 10% of the company's expenditure on these processing activities.

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

Table of sections
419‑5 Company entitled to refundable tax offset for expenditure incurred in producing critical minerals in Australia
419‑10 Amount of CMPTI tax offset
419‑15 Meaning of critical mineral
419‑20 Meaning of CMPTI processing activity

419‑5  Company entitled to refundable tax offset for expenditure incurred in producing critical minerals in Australia

Entitlement to the tax offset
 (1) A company is entitled to a *tax offset under this section (the CMPTI tax offset) for an income year if:
 (a) the company is a *constitutional corporation; and
 (b) the income year:
 (i) starts on or after 1 July 2027; and
 (ii) ends on or before 30 June 2040; and
 (c) there are one or more *registered CMPTI processing activities for the company and the income year; and
 (d) the company incurs *CMPTI expenditure for the income year in carrying on any of those activities; and
 (e) the company is not an *exempt entity; and
 (f) if *CMPTI community benefit rules under paragraph 419‑145(1)(a) apply to the company for the income year—the company meets the conditions specified in those rules; and
 (g) the company satisfies the residency requirements in subsection (2) for the income year.
Note: The CMPTI tax offset is a refundable tax offset (see section 67‑23).

Residency requirements
 (2) The company satisfies the residency requirements in this subsection for the income year if, at all