Treasury Laws Amendment (Junior Minerals Exploration Incentive) Act 2018 (15 of 2018)

Schedule 1   Junior minerals exploration incentive

Part 2   Other amendments

Income Tax Assessment Act 1997

15   At the end of Division 130

Add:

Subdivision 130-F - Exploration investments

130-110 Reducing the reduced cost base before disposal

(1) This section applies if:

(a) an entity (the minerals explorer ) issues a *share in the minerals explorer to another entity (the investor ) during the 2017-18, 2018-19, 2019-20 or 2020-21 income year; and

(b) the Commissioner makes a determination under section 418-101 allocating exploration credits to the minerals explorer for the income year in which the share is issued; and

(c) the share is issued to the investor on or after the day on which the Commissioner's determination is made; and

(d) the share is an *equity interest.

(2) The *reduced cost base of the *share is to be reduced immediately before the disposal of the share by the amount worked out as follows:

where:

investment period means the period, within the income year in which the *share is issued to the investor, that:

(a) begins on the day on which the Commissioner makes the determination mentioned in paragraph (1)(b); and

(b) ends at the end of the income year.