Taxation Laws Amendment Act (No. 4) 2003 (66 of 2003)

Schedule 2   Mining

Income Tax (Transitional Provisions) Act 1997

11   After subsection 40-77(1)

Insert:

(1A) Division 40 of the new Act does not apply to a renewal or extension of a mining, quarrying or prospecting right that you started to hold before 1 July 2001.

(1B) Subsection (1) applies to a mining, quarrying or prospecting right (the new right ) that you start to hold on or after 1 July 2001 as if you had started to hold the new right before that day if:

(a) you started to hold another mining, quarrying or prospecting right before that day; and

(b) the other right ends on or after that day; and

(c) the new right and the other right relate to the same area, or any difference in area is not significant.

(1C) Division 40 of the new Act does not apply to a mining, quarrying or prospecting right if:

(a) a company (the original holder ) started to hold the right before 1 July 2001; and

(b) the right is transferred after that day to another company where:

(i) the other company is a member of the same wholly-owned group as the original holder and was a member of that group just before that day; and

(ii) the right was held in the period between that day and the time of the transfer by a company or companies that were members of that group on that day and at the time of the transfer.