Document ID: chunk:federal_register_of_legislation:C2021C00321:clause:1_2:p6
Version: federal_register_of_legislation:C2021C00321
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 6/11)
Character Range: 20159–23097

income year.
 (4) The Commissioner must give the entity:
 (a) if the Commissioner makes a determination under section 418‑101—a copy of the determination; or
 (b) if the Commissioner decides to refuse the application—notice of that decision.

418‑101  Determination by the Commissioner

Determination allocating exploration credits
 (1) The Commissioner may make a written determination allocating *exploration credits of an amount specified in the determination to an entity for an income year.

Circumstances in which the Commissioner must not make a determination
 (2) The Commissioner must not make a determination allocating *exploration credits to an entity for an income year if the Commissioner is not satisfied that:
 (a) there is a reasonable possibility that the entity will have:
 (i) *greenfields minerals expenditure of the amount estimated by the entity in the application, or greater; and
 (ii) a *tax loss of the amount estimated by the entity in the application, or greater; and
 (iii) the *corporate tax rate estimated by the entity in the application; and
 (b) the entity meets any other requirement prescribed under the regulations.

Amount of the exploration credits allocated
 (3) The amount of the *exploration credits specified in the determination must be the smallest of the following amounts:
 (a) the entity's estimated *greenfields minerals expenditure for the income year multiplied by the entity's estimated *corporate tax rate for the income year;
 (b) the entity's estimated *tax loss for the income year multiplied by the entity's estimated corporate tax rate for the income year;
 (c) either:
 (i) 5% of an amount equal to the *annual exploration cap for the income year; or
 (ii) if another amount, or a method for working out another amount, is prescribed—the other amount.

Determination not a legislative instrument
 (4) A determination made under subsection (1) is not a legislative instrument.

418‑102  General allocation rules
 (1) The total amount of *exploration credits allocated to entities for an income year by the Commissioner must not exceed the *annual exploration cap for the year.
 (2) The Commissioner must consider applications for *exploration credits from entities for an income year in the order in which the Commissioner receives the applications.
 (3) If the Commissioner receives more than one application at the same time, the Commissioner may decide the order in which the Commissioner considers the applications.
 (4) If the Commissioner would contravene this section by allocating *exploration credits to an entity for an income year of an amount worked out under subsection 418‑101(3) then, despite that subsection, the amount of exploration credits allocated to that entity for the income year is to be the difference between the *annual exploration cap for the year and the total amount of exploration credits already allocated to other entities for the year.

418‑103