INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-10 - CAPITAL ALLOWANCES: RULES ABOUT DEDUCTIBILITY OF CAPITAL EXPENDITURE  

Division 40 - Capital allowances  

Subdivision 40-K - Farm-in farm-out arrangements  

Consequences for transferors

SECTION 40-1125   40-1125   Effect of exploration benefits on the cost of mining, quarrying or prospecting information  


If:


(a) you *hold a *depreciating asset that is *mining, quarrying or prospecting information; and


(b) under a *farm-in farm-out arrangement, you receive an *exploration benefit; and


(c) an amount or expenditure would, apart from this section, be included in the second element of the *cost of the asset;

do not include that amount or expenditure in the second element to the extent (if any) that it is reasonably attributable to the exploration benefit.


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