Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 116 - Capital proceeds  

Special rules  

SECTION 116-115   Farm-in farm-out arrangements  

116-115(1)    
If:

(a) *CGT event A1 is the *disposal of part of your interest in a *mining, quarrying or prospecting right; and

(b) the part is disposed of under a *farm-in farm-out arrangement; and

(c) you have received an *exploration benefit in respect of the event happening;

in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.

116-115(2)    
If:

(a) *CGT event C2 arises as a result of an *exploration benefit being provided to you; and

(b) the exploration benefit is provided under a *farm-in farm-out arrangement;

in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.