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

Entitlement to the tax offset

419-5(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

419-5(2)    
The company satisfies the residency requirements in this subsection for the income year if, at all times during the income year in which any of the activities covered by paragraph (1)(c) are carried on:

(a)    the company:

(i) is an Australian resident and has an * ABN; and

(ii) is carrying on the activity; or

(b)    the company:

(i) is a foreign resident that has a * permanent establishment in Australia and has an ABN; and

(ii) is carrying on the activity through that permanent establishment.