Tax Laws Amendment (2007 Measures No. 2) Act 2007 (78 of 2007)
Schedule 1 Effective life provisions
Income Tax Assessment Act 1997
3 At the end of section 40-95
Add:
Exception: mining, quarrying or prospecting rights
(10) The effective life of a *mining, quarrying or prospecting right is the period you work out yourself by estimating the period (in years, including fractions of years) set out in column 3 of this table:
|
Item |
For this asset: |
Estimate the period until the end of: |
|---|---|---|
|
1 |
A *mining, quarrying or prospecting right relating to *mining operations (except obtaining *petroleum or quarry materials) |
The life of the mine or proposed mine to which the right relates or, if there is more than one, the life of the mine that has the longest estimated life |
|
2 |
A *mining, quarrying or prospecting right relating to *mining operations to obtain *petroleum |
The life of the petroleum field or proposed petroleum field to which the right relates |
|
3 |
A *mining, quarrying or prospecting right relating to *mining operations to obtain quarry materials |
The life of the quarry or proposed quarry to which the right relates or, if there is more than one, the life of the quarry that has the longest estimated life |
(11) You work out the period in subsection (10):
(a) as from the *start time of the *mining, quarrying or prospecting right; and
(b) by reference only to the period of time over which the reserves, reasonably estimated using an appropriate accepted industry practice, are expected to be extracted from the mine, petroleum field or quarry.