Document ID: chunk:federal_register_of_legislation:C2025A00009:clause:2_1:p3
Version: federal_register_of_legislation:C2025A00009
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 3/17)
Character Range: 57929–60726

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)).
 (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.

Subdivision 419‑B—CMPTI expenditure

Table of sections
419‑25 Meaning of CMPTI expenditure
419‑30 Expenditure to be worked out excluding GST

419‑25  Meaning of CMPTI expenditure
 (1) CMPTI expenditure, of a company for an income year, is expenditure the company incurs during the income year to the extent that:
 (a) the expenditure is incurred in carrying on one or more of the company's *registered CMPTI processing activities for the income year at facilities specified in the certificates of registration for those activities; and
 (b) the expenditure is paid during the income year, if at the time the expenditure is incurred:
 (i) the company, and the entity to which the expenditure is incurred, are not dealing with each other at *arm's length; or
 (ii) the entity to which the expenditure is incurred is the company's *associate.

Excluded expenditure
 (2) Despite subsection (1), CMPTI expenditure does not include any expenditure the company incurs to the extent that the expenditure:
 (a) is capital, or is of a capital nature; or
 (b) is taken into account when calculating the decline in value of an asset for the purposes of a *taxation law; or
 (c) is incurred by way of, or in relation to, the financing of *registered CMPTI processing activities; or
 (d) is on feedstock, whether raw materials (such as ores or mineral concentrates) or intermediate outputs from a previous processing step; or
 (e) would result in more than 10% of the company's CMPTI expenditure for the income year being incurred on