Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS

Division 418 - Exploration for minerals

View history reference

View history note

Subdivision 418-DA - Exploration credits allocation

View history reference

View history note

History

Subdiv 418-DA inserted by No 15 of 2018, s 3 and Sch 1 item 2, effective 1 April 2018. No 15 of 2018 (as amended by No 72 of 2021), s 3 and Sch 1 items 65 - 67 contain the following application and transitional provisions:

Division 1 - Application and transitional provisions
65 Application of amendments
65
The amendments made by Parts 1 and 2 of this Schedule apply in relation to:
(a) the creation and issuing of exploration credits by an entity in relation to exploration investment made in the entity in the 2017-18, 2018-19, 2019-20 and 2020-21 income years; and
(b) the consequences of creating or issuing exploration credits for the 2017-18, 2018-19, 2019-20 and 2020-21 income years.
View history note

Hide history note

History

S 65 amended by No 72 of 2021, s 3 and Sch 2 item 15, by omitting " , but not in relation to exploration investment made in the entity in later income years " before " ; and " from para (a), effective 1 July 2021.

66 Transitional provisions relating to the 2017-18 income year
(1)
Despite subsection 418-100(2) of the Income Tax Assessment Act 1997 , as inserted by item 2 of this Schedule, an application to the Commissioner for a determination allocating exploration credits to an entity for the 2017-18 income year must be made during the period of one month starting on the later of:
(a) the eleventh business day after the day on which this Act receives the Royal Assent; and
(b) the day on which this item commences.

(2)
Nothing in subitem (1) affects the rules in subsection 418-102(2) or (3) of the Income Tax Assessment Act 1997 , as inserted by item 2 of this Schedule.

(3)
To avoid doubt:
(a) there can be no allocation of exploration credits for the 2016-17 income year by the Commissioner under section 418-101 of the Income Tax Assessment Act 1997 , as inserted by item 2 of this Schedule; and
(b) there can be no unused allocation of exploration credits from the 2016-17 income year for the purposes of that Act, as amended by this Schedule.
67 Continued application of the old law in relation to entities that were greenfields minerals explorers in the 2016-17 income year
67
To avoid doubt, the taxation law continues to apply in relation to the 2017-18 income year as if the amendments in Parts 1 and 2 of this Schedule had not been made, to the extent that the law relates to:
(a) the creation and issuing of exploration credits on the basis that the entity that creates and issues the credits is a greenfields minerals explorer in the 2016-17 income year; and
(b) the consequences of creating or issuing exploration credits in those circumstances.

SECTION 418-101 Determination by the Commissioner

View history reference

Determination allocating exploration credits

418-101(1)
The Commissioner may make a written determination allocating *exploration credits of an amount specified in the determination to an entity for an income year.

Circumstances in which the Commissioner must not make a determination

418-101(2)
The Commissioner must not make a determination allocating *exploration credits to an entity for an income year if the Commissioner is not satisfied that:

(a) there is a reasonable possibility that the entity will have:

(i) *greenfields minerals expenditure of the amount estimated by the entity in the application, or greater; and

(ii) a *tax loss of the amount estimated by the entity in the application, or greater; and

(iii) the *corporate tax rate estimated by the entity in the application; and

(b) the entity meets any other requirement prescribed under the regulations.

Amount of the exploration credits allocated

418-101(3)
The amount of the *exploration credits specified in the determination must be the smallest of the following amounts:

(a) the entity ' s estimated *greenfields minerals expenditure for the income year multiplied by the entity ' s estimated *corporate tax rate for the income year;

(b) the entity ' s estimated *tax loss for the income year multiplied by the entity ' s estimated corporate tax rate for the income year;

(c) either:

(i) 5% of an amount equal to the *annual exploration cap for the income year; or

(ii) if another amount, or a method for working out another amount, is prescribed - the other amount.

Determination not a legislative instrument

418-101(4)
A determination made under subsection (1) is not a legislative instrument.

View history note

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.