Future Made in Australia (Production Tax Credits and Other Measures) Act 2025 (9 of 2025)

Schedule 2   Critical minerals production tax incentive

Part 1   Main amendments

Income Tax Assessment Act 1997

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 4 19-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 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.

419-10 Amount of CMPTI tax offset

(1) The amount of the *CMPTI tax offset for the income year is equal to 10% of the company's total *CMPTI expenditure referred to in paragraph 419-5(1)(d).

(2) However, if:

(a) *CMPTI community benefit rules under paragraph 419-145(1)(b) apply to the company for the income year; and

(b) circumstances specified in those rules exist for the company;

the amount of the *CMPTI tax offset is reduced by the proportion specified in those rules for those circumstances.

419-15 Meaning of critical mineral

(1) Each of the following is a critical mineral :

(a) antimony;

(b) arsenic;

(c) beryllium;

(d) bismuth;

(e) chromium;

(f) cobalt;

(g) fluorine;

(h) gallium;

(i) germanium;

(j) graphite;

(k) hafnium;

(l) high purity alumina;

(m) indium;

(n) lithium;

(o) magnesium;

(p) manganese;

(q) molybdenum;

(r) nickel;

(s) niobium;

(t) each of the following platinum-group elements:

(i) iridium;

(ii) osmium;

(iii) palladium;

(iv) platinum;

(v) rhodium;

(vi) ruthenium;

(u) each of the following rare-earth elements:

(i) cerium;

(ii) dysprosium;

(iii) erbium;

(iv) europium;

(v) gadolinium;

(vi) holmium;

(vii) lanthanum;

(viii) lutetium;

(ix) neodymium;

(x) praseodymium;

(xi) promethium;

(xii) samarium;

(xiii) terbium;

(xiv) thulium;

(xv) ytterbium;

(xvi) yttrium;

(v) rhenium;

(w) scandium;

(x) selenium;

(y) silicon;

(z) tantalum;

(za) tellurium;

(zb) titanium;

(zc) tungsten;

(zd) vanadium;

(ze) zirconium;

(zf) a thing prescribed by the regulations.

(2) The regulations must not prescribe uranium for the purposes of paragraph (1)(zf).

419-20 Meaning of CMPTI processing activity

(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)).

(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 4 19-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 or in relation to *intellectual property; or

(f) is of a kind prescribed by the regulations.

Note: Similarly, subsection (1) means CMPTI expenditure does not include expenditure to the extent that the expenditure is incurred in carrying on:

(a) a registered CMPTI processing activity at a facility not specified in the certificate of registration for the activity; or

(b) an activity that is not a registered CMPTI processing activity.

(3) Despite subsection (1), if carrying on one or more of the company's *registered CMPTI processing activities results in an output that:

(a) would, if the output were the only output of the activities, mean the activities are not *CMPTI processing activities; and

(b) is disposed of, or is used to produce another output that is disposed of, in a way that:

(i) is for value; or

(ii) involves the company and another entity not dealing with each other at *arm's length; or

(iii) is to an *associate of the company;

CMPTI expenditure does not include so much of the company's expenditure incurred in carrying on those activities as is reasonably attributable to the first-mentioned output.

419-30 Expenditure to be worked out excluding GST

In determining an amount of expenditure for the purpose of this Division, the expenditure is taken to exclude *GST.

Subdivision 4 19-C - Registering activities and facilities for the CMPTI tax offset

Table of sections

419-35 Meaning of registered CMPTI processing activity

419-40 Notice of decision about an application for registration

419-45 Annual report about a registered CMPTI processing activity

419-50 A registration is in force for up to 10 income years

419-55 Transferring a registration

419-60 Varying a registration

419-65 Automatic suspension of a registration for failing to give an annual report or requested further information

419-70 Revoking a registration

419-75 Effect of revocations

419-80 Industry Secretary may request further information

419-85 Advising the Commissioner about a registration

419-90 Amendment of assessments

419-35 Meaning of registered CMPTI processing activity

(1) A company has a registered CMPTI processing activity for an income year if:

(a) the activity is registered for the company under subsection (2); or

(b) a registration of the activity is transferred to the company under subsection 419-55(2);

and the registration is in force for the company and the income year.

Note: For when the registration is in force, see section 419-50. The registration will not be in force if:

(a) it has already expired (see section 419-50); or

(b) it is suspended or has been revoked (see section 419-65 or 419-70).

Initial registration

(2) The *Industry Secretary must register an activity for a company if:

(a) the company applies to the Industry Secretary for the activity to be registered under this subsection; and

(b) the application identifies:

(i) the activity and each facility where the activity is to be carried on; and

(ii) the basis on which the company considers it will satisfy the requirements to be entitled to a *CMPTI tax offset in relation to the activity; and

(c) the application states that the company is the legal entity that is or will be carrying on the activity at those facilities; and

(d) the application is in a form approved under subsection 419-150(1); and

(e) the Industry Secretary is satisfied that the activity is a *CMPTI processing activity; and

(f) the Industry Secretary has no reason to believe that:

(i) the information provided by the company is not true, correct and complete; or

(ii) the company will not satisfy the requirements to be entitled to a CMPTI tax offset in relation to the activity; and

(g) the company has paid the application fee (if any) prescribed by the regulations.

Note: Any revocation of the registration does not prevent the company from applying under this subsection to re-register the activity. Any re-registration will not re-start the maximum 10-year period that the activity can be registered (see subsections 419-50(4) and (5)).

419-40 Notice of decision about an application for registration

(1) The *Industry Secretary must give written notice of a decision under subsection 419-35(2) about an application (of a company) to the company and the Commissioner.

Certificates of registration

(2) If the decision is to register an activity for the company, the notice must include a certificate of registration that includes the following:

(a) the company's name and *ABN;

(b) the day the certificate is issued;

(c) a description of the activity;

(d) a description of each facility where the activity is to be carried on;

(e) the matters (if any) prescribed by the regulations.

419-45 Annual report about a registered CMPTI processing activity

Content of the annual report

(1) A company that has a *registered CMPTI processing activity for an income year must prepare a written report that is in a form approved under subsection 419-150(1).

(2) Without limiting subsection 419-150(1), an instrument under that subsection may require the report to contain information about:

(a) the outputs for the activity for the income year; and

(b) the expected outputs for the activity for the next income year; and

(c) any significant events that arose during the income year, or that are expected for the next income year, that could affect the company's:

(i) entitlement to the *CMPTI tax offset; or

(ii) registration of the activity.

(3) Despite subsection 419-150(1), an instrument under that subsection must require the report to contain information about any matters prescribed by the regulations.

Giving the annual report

(4) The company must give the report to the *Industry Secretary within the period determined under subsection (5) that starts at the end of the income year.

(5) The *Industry Secretary may, by legislative instrument, determine a period of at least 30 days for giving reports under this section that starts at the end of each income year.

(6) The *Industry Secretary must give the Commissioner a copy of each report given under this section.

419-50 A registration is in force for up to 10 income years

Usual case

(1) The registration of a company's *registered CMPTI processing activity is in force for the 10-year period starting at the start of the income year chosen under subsection (2).

(2) The company may choose:

(a) the income year in which the *Industry Secretary receives the company's application for registration of the activity under subsection 419-35(2); or

(b) a later income year.

The way the company prepares its *income tax returns is sufficient evidence of the making of the choice.

(3) A choice under subsection (2) is irrevocable.

If the registration is a transfer or re-registration

(4) Despite subsection (1), if the registration of a company's *registered CMPTI processing activity:

(a) results from a transfer under subsection 419-55(2) of a registration that has already come into force; or

(b) will not be the first registration of the activity under subsection 419-35(2) that has come into force for any company;

the registration of the company's registered CMPTI processing activity comes into force at the start of the income year that includes the day the *Industry Secretary receives the application that results in that registration.

(5) The registration ceases to be in force at the same time that the first registration of the activity:

(a) under subsection 419-35(2); and

(b) that came into force for any company;

would have ceased to be in force if that first registration had continued in force for its full 10-year period.

If the activity is similar to another registered activity

(6) Despite subsections (1), (4) and (5), if the *Industry Secretary decides that:

(a) the company's *registered CMPTI processing activity (the current activity ) is similar to another activity that is or was a registered CMPTI processing activity of any company; and

(b) the registration of the other activity is the first to have come into force;

then:

(c) unless paragraph (d) applies - the registration of the current activity ceases to be in force at the same time that the registration of the other activity ceases to be in force; or

(d) if the registration of the other activity has already ceased to be in force - the current activity is taken, for the purposes of this Division, never to have been registered for the company and any income year.

(7) The *Industry Secretary must take the following into account in deciding under subsection (6) whether an activity is similar to another activity:

(a) the extent to which the assets and facilities used in carrying on one activity are used in carrying on the other activity;

(b) the extent to which the processes and operations undertaken as part of one activity are the same as those undertaken as part of the other activity;

(c) the extent of similarity between the inputs to and outputs of the activities;

(d) if the activities are carried on by different companies, the nature of any arrangements between those companies in respect of the activities;

(e) it is irrelevant if the other activity is no longer being carried on;

(f) any other criteria prescribed by the regulations.

The 10-year registration period is subject to revocation

(8) Nothing in this section prevents a company's registration from being revoked under section 419-70.

419-55 Transferring a registration

(1) This section applies if a *constitutional corporation (the acquirer ):

(a) acquires one or more of the facilities used in carrying on an activity that is a *registered CMPTI processing activity for another company (the disposer ); and

(b) the acquirer commences carrying on the activity at those facilities at or after:

(i) the time the disposer ceases carrying on the activity at those facilities; and

(ii) the time the disposer's registration of the activity comes into force (see section 419-50); and

(c) the acquirer seeks a transfer of the registration of the activity after the day of the acquisition.

Note 1: Transferring the registration will not re-start the maximum 10-year period that the activity can be registered (see subsections 419-50(4) and (5)).

Note 2: If the disposer's registration of the activity has not come into force (for example, by the disposer not having made a choice under subsection 419-50(2)), the acquirer should instead apply to register the activity under subsection 419-35(2).

(2) The *Industry Secretary must transfer the registration of the activity to the acquirer if:

(a) the acquirer requests the transfer by applying to the Industry Secretary before the end of the period determined under subsection (3) that starts on the day of the acquisition; and

(b) the application identifies:

(i) the activity and each facility where the activity is to be carried on; and

(ii) the basis on which the acquirer considers it will satisfy the requirements to be entitled to a *CMPTI tax offset in relation to the activity; and

(c) the application states:

(i) that the acquirer is the legal entity that is or will be carrying on the activity at those facilities (after the disposer ceases to do so); and

(ii) the time the acquirer is to commence carrying on the activity at those facilities, and the time the disposer is to cease to do so; and

(d) the application is in a form approved under subsection 419-150(1); and

(e) the Industry Secretary has no reason to believe that:

(i) the information provided by the acquirer is not true, correct and complete; or

(ii) the acquirer will not satisfy the requirements to be entitled to a CMPTI tax offset in relation to the activity; and

(f) the acquirer has paid the application fee (if any) prescribed by the regulations.

(3) The *Industry Secretary may, by legislative instrument, determine a period of at least 30 days for requesting transfers under this section. For each such request, the period starts on the day of the relevant acquisition.

(4) The *Industry Secretary must give written notice of a decision under subsection (2) to the acquirer, the disposer and the Commissioner.

(5) If the decision is to transfer the registration, the notice must include a certificate of registration that reflects the transfer.

419-60 Varying a registration

Variations on application

(1) The *Industry Secretary must decide whether to vary the registration of a *registered CMPTI processing activity of a company if:

(a) the company applies to the Industry Secretary for a variation of the registration; and

(b) the application is in a form approved under subsection 419-150(1); and

(c) the company has paid the application fee (if any) prescribed by the regulations.

Variations on the Industry Secretary's own initiative

(2) The *Industry Secretary may, on the Industry Secretary's own initiative, vary the registration of a *registered CMPTI processing activity of a company.

Matters relevant to such a decision

(3) In deciding under subsection (1) or (2) whether to vary the registration of an activity, the *Industry Secretary:

(a) in the case of an application under subsection (1) - must consider if there is any reason to believe that the information provided by the company is not true, correct and complete; and

(b) in every case:

(i) must have regard to any proposed changes relating to the activity; and

(ii) must have regard to the matters prescribed by the regulations; and

(iii) may have regard to any other matter that the Industry Secretary considers relevant.

Notice of such a decision

(4) The *Industry Secretary must give written notice of a decision under subsection (1) or (2) to:

(a) the company to whom the certificate of registration was issued; and

(b) the Commissioner.

(5) If the decision is to vary the registration, the notice must include the varied certificate of registration.

419-65 Automatic suspension of a registration for failing to give an annual report or requested further information

(1) The registration of a *registered CMPTI processing activity of a company is suspended if (and while) the company fails to:

(a) give a report under section 419-45 during an income year about the activity; or

(b) comply with a request, given under subsection 419-80(2) during an income year, for further information about the registration.

Note 1: The registration may be automatically revoked if the report or requested information is not given before the end of an extended period (see subsections 419-70(1) to (3)).

Note 2: Suspending the registration will not suspend the maximum 10-year period that the registration of the activity can be in force (see section 419-50).

(2) For the purposes of this Division (other than this section), the activity is taken:

(a) during the period of the suspension, never to have been registered for the company and the income year mentioned in paragraph (1)(a) or (b); but

(b) if that period ends, to have been registered during that period for the company and the income year.

Paragraph (b) of this subsection is subject to the registration being revoked under section 419-70.

Note: This means that if an assessment of a company's income tax for the income year is made on the basis that the company is entitled to the CMPTI tax offset for the activity, during the suspension the assessment may be amended to take account of the fact that the company was never entitled to the offset for the activity (see section 419-90).

419-70 Revoking a registration

Automatic revocation if annual report or requested information is not given before the end of an extended period

(1) The registration of a *registered CMPTI processing activity of a company is revoked at the start of an income year if the company:

(a) is required during the income year to give a report under section 419-45 about the activity (for the previous income year); and

(b) fails to do so before the end of the income year.

(2) The registration of a *registered CMPTI processing activity of a company is revoked at the start of an income year if the company:

(a) is required to comply with a request, given under subsection 419-80(2) during the income year, for further information about the registration; and

(b) fails to do so before the end of the 60-day period starting at the end of the period mentioned in that subsection for complying with the request.

(3) However, subsection (1) or (2) is taken never to have applied for a failure mentioned in that subsection if:

(a) the company eventually gives the *Industry Secretary:

(i) for subsection (1) - a report about the activity for the previous income year that complies with subsections 419-45(1) to (3); or

(ii) for subsection (2) - the requested further information in a way that complies with subsection 419-80(4); and

(b) the company applies to the Industry Secretary for the late report or information (the late material ) to be accepted; and

(c) the application is in a form approved under subsection 419-150(1); and

(d) the Industry Secretary decides to accept the late material because the Industry Secretary is satisfied that the delay in giving the late material was due to exceptional circumstances beyond the company's control; and

(e) the company has paid the application fee (if any) prescribed by the regulations.

Revocation on other grounds

(4) The *Industry Secretary may decide to revoke all registrations of a *registered CMPTI processing activity if the Industry Secretary:

(a) is satisfied that the first registration of the activity under subsection 419-35(2) for any company:

(i) was based on untrue, incorrect or incomplete information; or

(ii) was obtained by fraud or serious misrepresentation; or

(b) is satisfied that no company ever satisfied the requirements to be entitled to a *CMPTI tax offset in relation to the activity.

Note: This subsection can apply to a registration a company used to hold before it was transferred to the current holder.

(5) The *Industry Secretary may decide to revoke the registration of a *registered CMPTI processing activity of a company if the Industry Secretary:

(a) becomes satisfied that information provided by the company to the Industry Secretary during an income year in relation to the registration involved fraud or serious misrepresentation by or on behalf of the company; or

(b) reasonably believes:

(i) that, for an income year, the registration is not based on true, correct and complete information; or

(ii) that the company does not satisfy the requirements to be entitled to a *CMPTI tax offset in relation to the activity and an income year.

Notice of decisions

(6) The Industry Secretary must, within 30 days after making a decision under paragraph (3)(d) or subsection (4) or (5), give written notice of the decision to:

(a) the company, or each company, that holds or held a registration affected by the decision; and

(b) the Commissioner.

419-75 Effect of revocations

(1) If the registration of a *registered CMPTI processing activity of a company is revoked under subsection 419-70(4), the activity is taken, for the purposes of this Division, never to have been registered for the company and any income year.

Note: This means that if an assessment of a company's income tax for an income year is made on the basis that the company is entitled to the CMPTI tax offset for the activity, the assessment will be amended to take account of the fact that the company was never entitled to the offset for the activity (see section 419-90).

(2) If the registration of a *registered CMPTI processing activity of a company is revoked under subsection 419-70(1), (2) or (5), the revocation applies in relation to the income year referred to in that subsection and each later income year.

(3) Subsection (1), or subsection (2) to the extent that it relates to a revocation under subsection 419-70(5), does not apply for the purposes of:

(a) the operation of section 419-70, this section or Subdivision 419-E; or

(b) a review by a court or the *ART of the decision to revoke the registration.

419-80 Industry Secretary may request further information

(1) The *Industry Secretary may request an applicant under:

(a) subsection 419-35(2) (about registrations); or

(b) subsection 419-55(2) (about transfers); or

(c) subsection 419-60(1) (about variations); or

(d) subsection 419-70(3) (about late material);

to give specified information, or specified kinds of information, to the Industry Secretary about the application.

(2) The *Industry Secretary may request a company that has a *registered CMPTI processing activity to give specified information, or specified kinds of information, to the Industry Secretary about the registration within:

(a) the 30-day period starting when the request is given; or

(b) such longer period as the Industry Secretary allows.

The request must mention that the registration will be suspended and then revoked if the request is not complied with.

(3) The *Industry Secretary need not consider an application while waiting for information requested under subsection (1) about the application.

(4) A request under subsection (1) or (2) may be for the information or kinds of information to be given in a form approved under subsection 419-150(1).

419-85 Advising the Commissioner about a registration

Based on all information the *Industry Secretary has about a company's registration of a *registered CMPTI processing activity for an income year, the Industry Secretary must advise the Commissioner:

(a) whether the activity is being carried on in accordance with the registration; and

(b) whether the company is carrying on any *CMPTI processing activities during the income year that are not registered CMPTI processing activities; and

(c) whether the company is carrying on any other activities during the income year that the Industry Secretary believes may be relevant to the Commissioner's administration of this Division.

Note: Such advice could be based on information from sources including:

(a) applications under sections 419-35, 419-55 and 419-60; and

(b) annual reports given under section 419-45; and

(c) requests made under section 419-80.

419-90 Amendment of assessments

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment given to a company for the purposes of giving effect to this Division for an income year if the registration of a *registered CMPTI processing activity for the company is transferred, varied, suspended or revoked.

Note: Section 170 of the Income Tax Assessment Act 1936 specifies the periods within which assessments may be amended.

Subdivision 4 19-D - Integrity rules

Table of sections

419-95 Expenditure incurred while not at arm's length

419-100 Reducing a company's CMPTI expenditure to reflect mark-ups within the company's group

419-105 Disregarding registration of an activity that a company is paid to carry on

419-95 Expenditure incurred while not at arm's length

If:

(a) a company incurs *CMPTI expenditure to another entity in carrying on all or part of a *registered CMPTI processing activity; and

(b) either:

(i) when the company incurs the expenditure, the company and the other entity do not deal with each other at *arm's length; or

(ii) the other entity is the company's *associate; and

(c) the expenditure exceeds the *market value of the relevant activity or part (as appropriate);

for the purposes of this Division (other than this section), the company is treated as if the amount of expenditure it incurred in carrying on the relevant activity or part (as appropriate) were equal to that market value.

419-100 Reducing a company's CMPTI expenditure to reflect mark-ups within the company's group

(1) This section applies to a company if:

(a) the company is entitled to a *CMPTI tax offset for *CMPTI expenditure in carrying on one or more of the company's *registered CMPTI processing activities; and

(b) some or all of that expenditure (the group expenditure ) is incurred to another entity (the group entity ) for goods or services provided in relation to those activities when:

(i) the group entity is *connected with the company; or

(ii) the group entity is an *affiliate of the company or the company is an affiliate of the group entity.

Reducing the company's CMPTI expenditure by group mark-ups

(2) For the purposes of this Division (other than this section), disregard so much of the company's group expenditure as exceeds the actual cost to the group entity of providing those goods or services.

Note: This section can apply more than once if the company incurs CMPTI expenditure to more than one group entity.

419-105 Disregarding registration of an activity that a company is paid to carry on

If:

(a) a company is or will be paid by another entity for carrying on an activity during an income year that is a *registered CMPTI processing activity for the company and the income year; and

(b) the activity is or could be a registered CMPTI processing activity for any of the following for the income year:

(i) the other entity;

(ii) a *constitutional corporation *connected with the other entity;

(iii) a constitutional corporation that is an *affiliate of the other entity;

(iv) a constitutional corporation of which the other entity is an affiliate;

for the purposes of section 419-5 (about entitlement to the *CMPTI tax offset), disregard that registration of the activity for the company and the income year.

Subdivision 4 19-E - Review of certain decisions

Table of sections

419-110 Reviewable decisions

419-115 Notice of reviewable decision and internal review rights, and requesting statement of reasons

419-120 Applications for internal review of reviewable decisions

419-125 Internal review of reviewable decisions

419-130 Matters relevant to internal review decisions

419-135 External review by ART of internal review decisions

419-110 Reviewable decisions

Each of the following decisions of the *Industry Secretary is reviewable under this Subdivision (a reviewable decision ):

(a) a decision under subsection 419-35(2) (about registering an activity);

(b) a decision under subsection 419-50(6) (about whether an activity is similar to another activity);

(c) a decision under subsection 419-55(2) (about transferring the registration of an activity);

(d) a decision under subsection 419-60(1) or (2) (about varying the registration of an activity);

(e) a decision under paragraph 419-70(3)(d) (about refusing to accept late material);

(f) a decision under subsection 419-70(4) or (5) (about revoking the registration of an activity);

(g) a decision under subsection 419-120(3) (about refusing to allow a further period to apply for review).

419-115 Notice of reviewable decision and internal review rights, and requesting statement of reasons

(1) When making a reviewable decision affecting a company, the *Industry Secretary must give written notice to the company of the following things:

(a) the making of the decision;

(b) the company's right to have the decision reviewed under this Subdivision.

(2) If written notice of either of these things is given to the company under another provision of this Division, notice of the thing does not have to be given twice.

(3) The company or the Commissioner may request, in writing, the *Industry Secretary to give a statement of reasons for the decision. The Industry Secretary must comply with the request.

(4) A failure to comply with this section does not affect the validity of the decision.

419-120 Applications for internal review of reviewable decisions

Applications by affected companies

(1) An application for review of a reviewable decision affecting a company may be made by or on behalf of the company.

(2) The application must be in a form approved under subsection 419-150(1).

(3) The application must be made within:

(a) 28 days after the company is notified of the decision under this Division; or

(b) such further period as the *Industry Secretary allows.

Applications by Commissioner

(4) The Commissioner may, at any time, apply to the *Industry Secretary for review of a reviewable decision.

419-125 Internal review of reviewable decisions

(1) After receiving an application for review of a reviewable decision, the *Industry Secretary must review the decision.

(2) The *Industry Secretary may request the applicant to give specified information, or specified kinds of information, to the Industry Secretary about the application.

Making internal review decisions

(3) After reviewing the reviewable decision, the *Industry Secretary must make a decision (an internal review decision ):

(a) confirming the reviewable decision; or

(b) varying the reviewable decision; or

(c) setting aside the reviewable decision and substituting a new decision.

Note: An internal review decision is reviewable by the ART (see section 419-135). Under the Administrative Review Tribunal Act 2024, notice of the internal review decision must be given to any person whose interests are affected by the decision.

Deemed internal review decisions

(4) If the *Industry Secretary does not make a decision under subsection (3) before the end of the 60-day period that:

(a) starts on the day the Industry Secretary receives the application for review; and

(b) pauses while the Industry Secretary waits for any information requested under subsection (2) about the application for review;

the Industry Secretary is taken, at the end of that period, to have made a decision (also an internal review decision ) confirming the reviewable decision.

(5) However, an internal review decision (the deemed decision ) is taken not to have been made under subsection (4) if:

(a) after the end of the period referred to in that subsection, the *Industry Secretary makes a decision under subsection (3) about the applicable reviewable decision; and

(b) an application has yet to be made under section 419-135 to the *ART for review of the deemed decision.

419-130 Matters relevant to internal review decisions

(1) For the purposes of this Act, an internal review decision takes effect on the day the relevant reviewable decision took effect.

(2) The *Industry Secretary must give the Commissioner written notice of the making of an internal review decision.

(3) The applicant or the Commissioner may request, in writing, the *Industry Secretary to give a statement of reasons for the internal review decision. The Industry Secretary must comply with the request.

(4) A failure to comply with this section does not affect the validity of the internal review decision.

419-135 External review by ART of internal review decisions

(1) An application may be made to the *ART for review of an internal review decision of the *Industry Secretary.

(2) Subsections 108(2) and (4) of the Administrative Review Tribunal Act 2024 have effect for the purposes of this Act for:

(a) an internal review decision as varied by the *ART under section 105 of the Administrative Review Tribunal Act 2024; or

(b) a decision made by the ART under that section in substitution for an internal review decision.

Note: This means that the varied or substituted decision takes effect from the day on which the reviewable decision took effect (see subsection 419-130(1) of this Act).

Subdivision 4 19-F - Other matters

Table of sections

419-140 Information sharing

419-145 CMPTI community benefit rules

419-150 Forms approved by the Industry Secretary

419-155 Delegation by the Industry Secretary

419-140 Information sharing

(1) Each of the following regulators:

(a) the *Industry Secretary;

(b) the Commissioner;

may request the other regulator to provide them with information held by the other regulator that is reasonably necessary or convenient for the requesting regulator's administration of this Division.

(2) The other regulator must comply with the request.

Note 1: The request could be an ad hoc or standing request, and the information requested could be general or specific.

Note 2: A disclosure enabling the Commissioner to comply with such a request is within an exception to the confidentiality provisions in Schedule 1 to the Taxation Administration Act 1953 (see section 355-50 in that Schedule).

419-145 CMPTI community benefit rules

(1) The Minister may, by legislative instrument, make the following rules (the CMPTI community benefit rules ):

(a) rules that:

(i) apply to companies within a specified class for an income year; and

(ii) specify conditions that must be met for such a company to be entitled to a *CMPTI tax offset for the income year;

(b) rules that:

(i) apply to companies within a specified class for an income year; and

(ii) specify circumstances that, if they exist for such a company, will reduce the amount of the company's CMPTI tax offset for the income year by a specified proportion.

Note: For subparagraph (b)(ii), different proportions may be specified for different circumstances (see subsection 33(3A) of the Acts Interpretation Act 1901).

(2) In making the CMPTI community benefit rules, the Minister must have regard to the community benefit principles (within the meaning of subsection 10(3) of the Future Made in Australia Act 2024).

(3) When doing so, the Minister is to treat this Division as if it were Future Made in Australia support (within the meaning of that Act).

(4) This section does not apply if the Future Made in Australia Act 2024 has not commenced.

419-150 Forms approved by the Industry Secretary

(1) The *Industry Secretary may, by notifiable instrument, approve a form for the purposes of a specified provision of this Division.

Note: An instrument may approve different forms for the purposes of different provisions of this Division (see subsection 33(3A) of the Acts Interpretation Act 1901).

(2) Without limiting subsection (1), the instrument may require the form to be accompanied by specified kinds of information, documents or other materials.

419-155 Delegation by the Industry Secretary

(1) The *Industry Secretary may, in writing, delegate all or any of the Industry Secretary's powers under this Division to an SES employee, or acting SES employee, in the *Industry Department.

(2) In exercising powers under a delegation, the delegate must comply with any directions of the *Industry Secretary.