Tax Laws Amendment (2012 Measures No. 6) Act 2013 (84 of 2013)

Schedule 3   Geothermal energy

Income Tax Assessment Act 1997

7   After subsection 40-80(1)

Insert:

(1A) The decline in value of a *depreciating asset you *hold is the asset's *cost if:

(a) you first use the asset for *exploration or prospecting for *geothermal energy resources from which energy can be extracted by *geothermal energy extraction; and

(b) when you first use the asset, you do not use it for:

(i) development drilling for geothermal energy resources; or

(ii) operations in the course of working a property containing geothermal energy resources; and

(c) you satisfy one or more of these subparagraphs at the asset's *start time:

(i) you carry on geothermal energy extraction;

(ii) it would be reasonable to conclude you proposed to carry on geothermal energy extraction;

(iii) you carry on a *business of, or a business that included, exploration or prospecting for geothermal energy resources from which energy can be extracted by geothermal energy extraction, and expenditure on the asset was necessarily incurred in carrying on that business.