Australia's Department of Industry, Science and Resources has launched a public consultation on proposed application and reporting arrangements for the Critical Minerals Production Tax Incentive (CMPTI), seeking feedback before the incentive commences in 2027.
Australia’s Department of Industry, Science and Resources opened a public consultation on 14 July 2026 on the proposed application and reporting arrangements for the Critical Minerals Production Tax Incentive (CMPTI), inviting stakeholder feedback on draft registration and reporting form questions, annual reporting and registration transfer timeframes, and customer guidance.
The consultation is intended to ensure that the administrative framework is clear, practical and proportionate while supporting compliance with Division 419 of the Income Tax Assessment Act 1997 before the incentive comes into effect in 2027.
The CMPTI forms part of the Australian Government’s Future Made in Australia plan. Under the scheme, eligible companies will receive a refundable tax offset equal to 10% of eligible Australian processing costs for critical minerals processed and refined between 1 July 2027 and 30 June 2040, with support available for up to 10 years per project.
The department is seeking submissions from industry participants, advisers, governments, community groups and regulators on proposed application and reporting form questions, annual reporting and registration transfer timeframes, and customer guidance.
Registration requirements
The consultation paper proposes a registration process designed to confirm an applicant’s identity and eligibility for the incentive.
Applicants would be required to provide company details, including their Australian Business Number (ABN), registered business name and head office addresses. They would also need to confirm that they are a constitutional corporation, understand the tax offset period, and meet residency requirements and the Community Benefit Rules.
For projects operated through joint ventures, the proposed registration forms would collect information on shared ownership arrangements, including partner names, ownership percentages and cost-sharing arrangements.
Activity eligibility
The consultation also covers proposed questions to assess whether an applicant’s activities meet the legislative definition of critical mineral processing.
The framework focuses on the substantial transformation of feedstock containing a critical mineral into a purer, chemically distinct form through extractive metallurgy.
Specific questions have been proposed for three regulated processing categories.
For High Purity Alumina (HPA), applicants would need to demonstrate transformation into HPA with a purity of at least 99.99%.
For graphite processing, applicants would be required to provide information on outcomes such as increased graphitic carbon content, reduced particle size or more spherical particle shapes.
For Precursor Cathode Active Material (pCAM), applicants would need to demonstrate chemical transformation into material suitable for lithium-ion battery cathodes.
The consultation paper also clarifies that mining, beneficiation activities such as crushing and grinding, and manufacturing activities are excluded from the incentive.
Reporting and compliance framework
The proposed arrangements include ongoing reporting obligations and processes for managing changes to registered projects.
Companies would be required to submit annual reports covering actual production volumes for critical and non-critical mineral outputs, as well as projected production for the following year.
The framework would also establish procedures for notifying the department of changes to facilities, ownership structures or joint venture arrangements, and for transferring registrations to other entities.
The proposals include provisions for late submissions where delays occur due to circumstances outside an applicant’s control, along with procedures for requesting internal reviews of departmental decisions.
The department said the proposed questions are intended to collect information needed to assess eligibility and support ongoing compliance while ensuring the application process remains practical for industry participants.
The consultation will close on 11 August 2026.
