Taxation Laws Amendment Act (No. 3) 1997 (147 of 1997)

Schedule 2   Sale of mining rights

Income Tax Assessment Act 1997

4   After subsection 330-60(1)

Insert:

(1A) If you*derived the*ordinary income under a contract for the sale, transfer or assignment of the rights entered into after 7.30 pm, by legal time in the Australian Capital Territory, on 20 August 1996, the exemption applies only to:

(a) so much of the ordinary income as you would have derived if those rights had been sold for their market value at that time;

reduced by:

(b) any amounts you incurred before that time that you have deducted or can deduct for an earlier income year under Division 10 of Part III of theIncome Tax Assessment Act 1936 in respect of expenditure on exploration or prospecting (within the meaning of section 122J or 122JF of that Act) in that area.