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

Schedule 1   Junior minerals exploration incentive

Part 3   Repeal of Division 418

Income Tax Assessment Act 1997

45   Section 130-110

Repeal the section, substitute:

130-110 Reducing the reduced cost base before disposal

(1) This section applies if:

(a) an entity (the minerals explorer ) issued 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 made a determination under section 418-101, as in force immediately before 1 July 2023, allocating exploration credits to the minerals explorer for the income year in which the share was issued; and

(c) the share was issued to the entity on or after the day on which the Commissioner's determination was 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 was issued to the investor, that:

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

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

(3) In this section:

exploration credit has the meaning that it had under this Act, as in force immediately before 1 July 2023.