Commonwealth Numbered Acts Commonwealth Numbered Acts
Income Tax Assessment Act 1997
1 Subsection 40‑95(7) (table items 11, 12 and 13)
Repeal the items.
2 Subsection 40‑95(8)
After " * IRU", insert "or a * mining, quarrying or prospecting right".
3 At the end of section 40‑95
Add:
Exception: mining, quarrying or prospecting rights
(10) The effective life of a * mining, quarrying or prospecting right is the period you work out yourself by estimating the period (in years, including fractions of years) set out in column 3 of this table:
|
Item |
For this asset: |
Estimate the period until the end of: |
|
1 |
A * mining, quarrying or prospecting right relating to * mining operations (except obtaining * petroleum or quarry materials) |
The life of the mine or proposed mine to which the right relates or, if there is more than one, the life of the mine that has the longest estimated life |
|
2 |
A * mining, quarrying or prospecting right relating to * mining operations to obtain * petroleum |
The life of the petroleum field or proposed petroleum field to which the right relates |
|
3 |
A * mining, quarrying or prospecting right relating to * mining operations to obtain quarry materials |
The life of the quarry or proposed quarry to which the right relates or, if there is more than one, the life of the quarry that has the longest estimated life |
(11) You work out the period in subsection (10):
(a) as from the * start time of the * mining, quarrying or prospecting right; and
(b) by reference only to the period of time over which the reserves, reasonably estimated using an appropriate accepted industry practice, are expected to be extracted from the mine, petroleum field or quarry.
4 Subsection 40‑105(4)
Repeal the subsection, substitute:
(4) This section does not apply to the following intangible * depreciating assets:
(a) assets to which an item in the table in subsection 40‑95(7) applies;
(b) * mining, quarrying or prospecting rights.
5 After subsection 40‑110(3)
Insert:
(3A) Subsections (1), (2) and (3) do not apply to a * depreciating asset that is a * mining, quarrying or prospecting right.
(3B) You may choose to recalculate the * effective life of a * mining, quarrying or prospecting right from a later income year if the effective life you have been using is no longer accurate because of changed circumstances relating to an existing or proposed mine, petroleum field or quarry to which that right relates.
6 Subsection 40‑110(4)
Repeal the subsection, substitute:
(4) A recalculation under this section must be done using:
(a) if paragraph (b) does not apply--section 40‑105 (about self‑assessing effective life); or
(b) if the * depreciating asset is a * mining, quarrying or prospecting right--subsections 40‑95(10) and (11).
7 Application
The amendments made by this Schedule apply to assessments for the income year in which 1 July 2001 occurred and later income years.