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

Schedule 2   Mining

Income Tax (Transitional Provisions) Act 1997

13   At the end of section 40-77

Add:

(4) Your assessable income includes an amount if:

(a) after 1 July 2001, you stop holding a mining, quarrying or prospecting right that you started to hold before that day; and

(b) you have deducted or can deduct an amount for it under Subdivision 330-C in relation to Subdivision 330-D or 330-E of the former Act.

The amount included is the amount you have deducted or can deduct.

(5) Your assessable income also includes an amount if:

(a) after 1 July 2001, you stop holding a mining, quarrying or prospecting right that you started to hold before that day; and

(b) because of section 40-35 or 40-38 of this Act, you have deducted or can deduct an amount for a notional asset that relates to expenditure on the right under Division 40 of the new Act.

The amount included is the amount you have deducted or can deduct.

(6) Division 110 of the new Act applies as if an amount included in assessable income under subsection (4) or (5) of this section were the reversal of a deduction under a provision of the new Act outside Parts 3-1 and 3-3 and Division 243.

(7) An amount that would be included in your assessable income under subsection 40-285(1) of the new Act in respect of a mining, quarrying or prospecting right is reduced by an amount worked out under subsection (8) if:

(a) you acquired the right from an associate (except a company that is a member of the same wholly-owned group) on or after 1 July 2001; and

(b) the associate started to hold the right before that day.

(8) The amount is reduced (but not below zero) by the difference between the capital cost that you incurred after that day and the amount to which the cost of the right is limited under subsection (2) of this section.