Document ID: chunk:federal_register_of_legislation:C2015A00130:clause:1_10:p2
Version: federal_register_of_legislation:C2015A00130
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 2/4)
Character Range: 25707–28508

for which the decline in value is provided under section 40‑80; or
 (iii) expenditure, of a kind referred to in subsection 40‑730(1), that meets the requirements of subsection (3) of this section; and
 (d) in a case where the transferor does not conduct the exploration or prospecting—were the transferor to conduct the exploration or prospecting, expenditure incurred by the transferor relating to the exploration or prospecting would:
 (i) be included in the cost of mining, quarrying or prospecting information held by the transferor; or
 (ii) be included in any other depreciating asset, held by the transferor, for which the decline in value is provided under section 40‑80; or
 (iii) be expenditure, of a kind referred to in subsection 40‑730(1), that meets the requirements of subsection (3) of this section.
 (3) Expenditure meets the requirements of this subsection if:
 (a) for that expenditure, the transferor satisfies, or would satisfy, one or more of paragraphs 40‑730(1)(a) to (c); and
 (b) the expenditure is not of a kind referred to in subsection 40‑730(2) or (3); and
 (c) the expenditure is not of a kind that another provision of this Act provides is not deductible.

Consequences for transferors

40‑1105  Treatment of certain exploration benefits received under farm‑in farm‑out arrangements
  If, under a *farm‑in farm‑out arrangement, you receive an *exploration benefit in relation to the transfer of part of your interest in a *mining, quarrying or prospecting right, the *termination value of the part of the interest is reduced by the *market value of the exploration benefit.

40‑1110  Cost of split interests resulting from farm‑in farm‑out arrangements
  Despite section 40‑205, if:
 (a) under a *farm‑in farm‑out arrangement, you provide a part of your interest in a *mining, quarrying or prospecting right; and
 (b) because of subsection 40‑115(2), this Division applies as if you had split your interest into the part you stopped *holding and the rest of your interest;
then:
 (c) the first element of the *cost of the asset that consists of the part you stopped holding is a reasonable proportion of the amount you are taken to have paid under section 40‑185 for any economic benefit involved in splitting your interest; and
 (d) the first element of the cost of the asset that consists of the rest of your interest is the sum of:
 (i) the *adjustable value of your interest just before it was split; and
 (ii) a reasonable proportion of the amount you are taken to have paid under section 40‑185 for any economic benefit involved in splitting your interest.

40‑1115  Deductions relating to receipt of exploration benefits
 (1) If:
 (a) under a *farm‑in farm‑out arrangement, you receive an *exploration benefit in exchange for providing a part of your interest in