Document ID: chunk:federal_register_of_legislation:C2021C00321:clause:1_2:p4
Version: federal_register_of_legislation:C2021C00321
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 4/11)
Character Range: 15109–17879

neither the amount mentioned in paragraph (1)(a) nor (1)(b) exceeds the total amount of all *exploration credits created by the entity for the income year, there is no unused allocation of exploration credits from the income year, and the amount of any unused allocation of exploration credits from the income year is nil.
 (4) In this section:
total credits issue for investment in the entity (the minerals explorer) for an income year means the total of all *exploration credits that may be issued by the minerals explorer to all other entities in relation to *exploration investment made by those other entities in the minerals explorer in the income year if section 418‑120 is complied with.

418‑85  Exploration credits must not exceed maximum exploration credit amount
 (1) An entity must not create *exploration credits for an income year of a total amount that exceeds the entity's *maximum exploration credit amount for the income year.
 (2) An entity's maximum exploration credit amount for an income year (the credit year) is the smallest of the following amounts:
 (a) the entity's *greenfields minerals expenditure for the credit year multiplied by the entity's *corporate tax rate for the credit year;
 (b) the entity's *tax loss for the credit year multiplied by the entity's corporate tax rate for the credit year;
 (c) the sum of:
 (i) the entity's *exploration credits allocation for the credit year; and
 (ii) the entity's *unused allocation of exploration credits from the income year immediately preceding the credit year.
 (3) In working out the entity's *greenfields minerals expenditure for the credit year for the purposes of paragraph (2)(a), reduce that greenfields minerals expenditure by the sum of:
 (a) all *recoupments that the entity receives in relation to the entity's greenfields minerals expenditure for the credit year; and
 (b) if:
 (i) an amount has been included in the entity's assessable income because a *balancing adjustment event occurs for a *depreciating asset; and
 (ii) all or part of the amount of the deduction to which the entity is entitled under section 40‑25 for the credit year in relation to the decline in value of the asset is included in the entity's greenfields minerals expenditure for that year;
  so much of the amount of that deduction as was included in that greenfields minerals expenditure.
 (4) In working out the entity's *tax loss for the credit year for the purposes of paragraph (2)(b), reduce that tax loss by the sum of:
 (a) all *recoupments that the entity receives in relation to the entity's *greenfields minerals expenditure for the credit year; and
 (b) any part of the entity's tax loss for the credit year that would not be deductible in the income year immediately following the credit