Document ID: chunk:federal_register_of_legislation:C2012A00018:clause:2_3
Version: federal_register_of_legislation:C2012A00018
Segment Type: clause
Provision Reference: sch 2 cl 3
Character Range: 55716–57396

3  Choosing a valuation approach
 (1) A person may choose the valuation approach for:
 (a) an interest that, on 30 June 2013, the person holds in an onshore petroleum project or the North West Shelf project; or
 (b) an interest that the person may in the future hold in such a project, if the project:
 (i) does not exist at the time the person makes the choice; and
 (ii) would, if it later came into existence, be derived from an exploration permit or retention lease in which the person held an interest at that time.
 (2) The choice is not valid unless the person gives to the Commissioner a valid starting base return.
 (3) The choice must specify whether the person has chosen:
 (a) the book value approach; or
 (b) the market value approach; or
 (c) the look‑back approach.
Note 1: The book value approach and the market value approach affect a person's starting base amount under Part 3, through the valuation of starting base assets under Division 3 of that Part and the way in which interim expenditure is taken into account under Division 4 of that Part.
Note 2: There is no starting base amount if the look‑back approach applies, but expenditure incurred before 1 July 2012 may be eligible real expenditure: see subsections 45(2), (4) and (5).
 (4) The choice is irrevocable after:
 (a) 30 August 2013; or
 (b) if, under paragraph 22(2)(c), the Commissioner allows further time for the person to give a starting base return—after that time elapses.
 (5) The choice applies to:
 (a) the year of tax commencing on 1 July 2012; and
 (b) all later years of tax.
Note: Making a choice obliges the person to give to the Commissioner a starting base return under clause 22.