Key Documents
In the 2013-14 Budget measure limiting the immediate deductibility of expenditure on mining rights and mining information, there was a provision that the measure did not prevent the immediate deductibility of mining rights acquired under a ‘farm-in, farm-out’ arrangement (the partial exchange of a tenement interest in exchange for the farmee providing exploration services as consideration).
The Government subsequently announced in the 2014-15 Budget that the limited immediate deductibility would also not result in a tax liability on mining rights acquired under tenement ownership realignments within a common development project.
The attached exposure draft law and draft explanatory memorandum seek to give effect to the announced measures. The community's views are sought on the draft legislation.