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

5   After section 40-215

Insert:

40-217 Cost of partial continuations of mining, quarrying or prospecting rights

If:

(a) because of subsection 40-30(6), this Division applies to a *mining, quarrying or prospecting right (the new right ) as if it were a continuation of another mining, quarrying or prospecting right you *held; and

(b) the new right satisfies the condition in subparagraph (b)(ii) of that subsection because it relates to an area that is a part of the area that the other right relates to;

the first element of the cost of the new right is a reasonable proportion of the *adjustable value of other right at the time just before the other right ends.