Income Tax Assessment Act 1997
CGT event D3 happens if you own a *prospecting entitlement or *mining entitlement, or an interest in one, and you grant another entity a right to receive *ordinary income or *statutory income from operations permitted to be carried on by the entitlement.
If this event applies, there is no disposal of the entitlement.104-45(2)
The time of the event is:
(a) when you enter into the contract with the other entity; or
(b) if there is no contract - when you grant the right to receive *ordinary income or *statutory income. 104-45(3)
You make a capital gain if the *capital proceeds from the grant of the right are more than the expenditure you incurred in granting it. You make a capital loss if those capital proceeds are less . 104-45(4)
The expenditure can include giving property: see section 103-5 . However, it does not include an amount you have received as *recoupment of it and that is not included in your assessable income, or an amount to the extent that you have deducted or can deduct it.