Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 (67 of 2024)

Schedule 3   Capital allowances for mining, quarrying or prospecting rights and clarifying the meaning of exploration for petroleum

Part 1   Capital allowances for mining, quarrying or prospecting rights

Income Tax Assessment Act 1997

4   After section 40-120

Insert:

40-122 Partial conversions of mining, quarrying or prospecting rights

(1) This section applies if:

(a) a *depreciating asset you *hold is a *mining, quarrying or prospecting right (the old right ) that relates to an area; and

(b) you begin to hold another depreciating asset (the partial new right ) that:

(i) is a mining, quarrying or prospecting right; and

(ii) relates to an area that is a part of the area that the old right relates to; and

(c) the old right does not end when you begin to hold the partial new right.

(2) This Division applies as if:

(a) when you begin to hold the partial new right, the old right is split into:

(i) an asset that is the partial new right; and

(ii) an asset that is the old right; and

(b) the assets mentioned in subparagraphs (a)(i) and (ii) are both continuations of the old right.

Note: For the cost of the split assets, see section 40-205.