Tax and Superannuation Laws Amendment (2015 Measures No. 2) Act 2015 (130 of 2015)

Schedule 1   Tax relief for certain mining arrangements

Part 2   Farm-in farm-out arrangements

Income Tax Assessment Act 1997

16   After section 116-110

Insert:

116-115 Farm-in farm-out arrangements

(1) If:

(a) *CGT event A1 is the *disposal of part of your interest in a *mining, quarrying or prospecting right; and

(b) the part is disposed of under a *farm-in farm-out arrangement; and

(c) you have received an *exploration benefit in respect of the event happening;

in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.

(2) If:

(a) *CGT event C2 arises as a result of an *exploration benefit being provided to you; and

(b) the exploration benefit is provided under a *farm-in farm-out arrangement;

in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.