Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 417 - Timor Sea petroleum  

Subdivision 417-B - Capital allowances  

SECTION 417-45   Capital expenditure  

417-45(1)    
For the purposes of section 40-835 , if:

(a) a *project amount was allocated to a project pool before the *Timor Sea Maritime Boundaries Treaty entered into force; and

(b) the project amount was expenditure for a purpose of undertaking *transitioned petroleum activities in relation to the *JPDA;

to the extent that the operation of the project in an income year relates to that expenditure, 10% of the project is taken to operate, in the year, for a *taxable purpose.

417-45(2)    
For the purposes of section 40-835 , if:

(a) a *project amount was allocated to a project pool before the *Timor Sea Maritime Boundaries Treaty entered into force; and

(b) the project amount was expenditure for a purpose of undertaking *transitioned petroleum activities otherwise than in relation to the *JPDA;

to the extent that the operation of the project in an income year relates to that expenditure, the project is taken to operate, in the year, for a *taxable purpose.

417-45(3)    
If subsection (1) or (2) applies to one or more *project amounts allocated to a project pool, for the income year (the initial income year ) in which the *Timor Sea Maritime Boundaries Treaty entered into force or a later income year, calculate your deduction under section 40-830 or 40-832 for the project pool as follows:

(a) calculate the amount of the deduction as if none of those project amounts had been allocated to the project pool;

(b) add to that amount the following:

(i) for the initial income year - 40% of the sum of those project amounts;

(ii) for the next income year - 40% of that sum;

(iii) for the income year after that next income year - 20% of that sum.