INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 10 - Mining and quarrying  

Subdivision A - General mining  

SECTION 122   INTERPRETATION  

122(1)   [Definitions]  

In this Subdivision:

allowable capital expenditure
has the meaning given by section 122A .

concentration
means concentration by a gravity, magnetic, electrostatic or flotation process.

housing and welfare
, in relation to a taxpayer, means:

(a) residential accommodation provided by the taxpayer at, or at a place adjacent to, the site of prescribed mining operations carried on by the taxpayer, being accommodation provided for the use of employees of the taxpayer employed for the purposes of the operations of the taxpayer on that site or operations of the taxpayer connected with those operations, or for the use of dependants of such employees; and

(b) health, educational, recreational or other similar facilities, or facilities for the provision of meals, provided by the taxpayer at, or at a place adjacent to, the site of prescribed mining operations carried on by the taxpayer, being facilities that:

(i) are provided principally for the welfare of such employees or of dependants of such employees; and

(ii) are not conducted for the purpose of profit-making by the taxpayer or any other person,

and includes works carried out directly in connexion with such accommodation or facilities, including works for the provision of water, light, power, access or communications.

mining or prospecting information
means geological, geophysical or technical information, being information that relates to the presence, absence or extent of deposits of minerals, other than petroleum, in an area or is likely to be of assistance in determining the presence, absence or extent of such deposits in an area, and has been obtained from exploration or prospecting, or mining, for minerals.

mining or prospecting right
means an authority, licence, permit or right to mine or prospect for minerals in a particular area, or a lease of land by virtue of which the lessee is entitled to mine or prospect for minerals on the land, and includes an interest in such an authority, licence, permit, right or lease and, for the purposes of provisions relating to the acquisition by a person of a mining or prospecting right from another person, also includes any rights in respect of buildings or other improvements (including housing and welfare) on the land concerned, or used in connexion with operations on the land concerned, that are acquired with the mining or prospecting right.

prescribed mining operations
means mining operations on a mining property for the extraction of minerals, other than petroleum, from their natural site, being operations carried on for the purpose of gaining or producing assessable income.

prescribed purposes
means the purposes for which allowable capital expenditure may be incurred or the purposes referred to in section 122J , and, in relation to property in respect of which the taxpayer incurred expenditure of a capital nature - :

(a) on or before 9 May 1968; or

(b) after that date, in accordance with a contract made on or before that date,

includes the purposes for which expenditure referred to in subsection 122(1) of the Income Tax Assessment Act 1936-1967 could be incurred or purposes that were referred to in section 123AA .

property
includes a mining or prospecting right.

the Income Tax Assessment Act 1936-1967
includes the Income Tax Assessment Act 1936 as amended by any Act up to and including the Income Tax Assessment Act (No. 4) 1967 .

treatment
means:

(a) cleaning, leaching, crushing, grinding, breaking, screening, grading or sizing;

(b) concentration; or

(c) any other treatment applied to a mineral, being a treatment that is applied before concentration or, in the case of a mineral not requiring concentration, that would, if the mineral had required concentration, have been applied before the concentration,

and, without extending, by implication, the processes that are included in this definition, is declared not to include:

(d) sintering or calcining; or

(e) the production of, or processes carried on in connexion with the production of, alumina, or pellets or other agglomerated forms of iron.

122(2)   [Deductions allowable under former Div]  

A reference in this Subdivision to a deduction or deductions allowed or allowable under this Subdivision (not including a reference to a deduction or deductions allowed or allowable under a specified provision of this Subdivision) shall, unless the contrary intention appears, be read as including a reference to a deduction or deductions allowed or allowable under the Division for which this Subdivision was substituted.

122(3)   [Operations on two or more properties]  

Where a taxpayer carries on prescribed mining operations on 2 or more mining properties, this Subdivision (other than section 122J ) shall, except to the extent to which a contrary intention appears, be construed as applying in relation to the operations of that taxpayer on and in connexion with each of those mining properties as if it were the only mining property on which the taxpayer carried on prescribed mining operations, and, for the purposes of the application of this Subdivision (other than section 122J ) in relation to a taxpayer in relation to a mining property:

(a) any matters or things relating exclusively to any other mining property on which the taxpayer carried on prescribed mining operations shall be disregarded; and

(b) amounts of expenditure (including expenditure on treatment plant or other plant for use in connexion with operations on 2 or more of the properties on which the taxpayer carried on prescribed mining operations), or other amounts, to which paragraph (a) does not apply shall be apportioned in such manner as the Commissioner considers reasonable.

122(4)   [Amount specified in notice]  

A reference in a provision of this Subdivision to an amount specified in a notice shall, if another amount is deemed to be specified in that notice in lieu of the amount in fact so specified by virtue of another provision of this Subdivision, be read as a reference to that other amount.

122(5)   [Amount specified in notice under s 122B]  

For the purposes of this Subdivision, any amount specified in a notice given to the Commissioner under section 122B in relation to the acquisition from a taxpayer of a mining or prospecting right or mining or prospecting information shall be deemed to be wholly attributable to expenditure incurred by the taxpayer, and the extent to which such an amount is attributable to particular expenditure, to expenditure of a particular class or to expenditure incurred at a particular time or during a particular period shall be as determined by the Commissioner.