Income Tax Assessment Act 1936

SCHEDULE 2D - TAX EXEMPT ENTITIES THAT BECOME TAXABLE  

Division 57 - Tax exempt entities that become taxable  

Subdivision 57-J - Capital allowances and certain other deductions  

SECTION 57-105   SPECIAL RULES FOR MINING AND QUARRYING  

57-105(1)   Exploration and prospecting - assume no expenditure.  

In working out the transition taxpayer ' s allowable deductions under the former Subdivision 330-A or 330-C or Division 40 of the Income Tax Assessment Act 1997 , assume that the transition taxpayer incurred no expenditure on exploration and prospecting before the transition time.

57-105(2)   Assume that no excess deductions available.  

In working out the transition taxpayer ' s allowable deductions under the former Subdivision 330-A or 330-C of the Income Tax Assessment Act 1997 , assume that, for each year of income before the transition year, the transition taxpayer ' s assessable income would have exceeded the total of the transition taxpayer ' s deductions for the year.

Note:

This means that the transition taxpayer can have no excess deductions remaining from years of income before the transition year.