Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p23
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 23/95)
Character Range: 5606803–5609740

entity and another entity in connection with their commercial or financial relations just because the entity acquires petroleum (within the meaning of the *Timor Sea Maritime Boundaries Treaty) from the other entity if:
 (a) the petroleum was produced by undertaking *transitioned petroleum activities in the Bayu‑Undan Gas Field (within the meaning of that treaty); and
 (b) the price for the acquisition is the price that is used by, or agreed with, a *foreign government agency of Timor‑Leste in relation to the acquisition for the purposes of administering the law of Timor‑Leste relating to taxation.

Supplies of goods and services
 (2) An entity is taken, for the purposes of Division 815, not to get a *transfer pricing benefit from conditions that operate between the entity and another entity in connection with their commercial or financial relations just because the entity supplies goods or services to the other entity if:
 (a) the supply occurred pursuant to the terms of an *arrangement, connected with undertaking *transitioned petroleum activities, that:
 (i) was in force just before the *Timor Sea Maritime Boundaries Treaty was made; or
 (ii) is substantially similar to an arrangement that was in force just before that time; and
 (b) the price for the supply is the price that is used by, or agreed with, a *foreign government agency of Timor‑Leste in relation to the supply for the purposes of administering the law of Timor‑Leste relating to taxation.

Division 418—Exploration for minerals

Table of Subdivisions
 Guide to Division 418
418‑A Object of this Division
418‑B Junior minerals exploration incentive tax offset
418‑C Junior minerals exploration incentive franking credit
418‑D Creating exploration credits
418‑DA Exploration credits allocation
418‑E Issuing exploration credits
418‑F Excess exploration credits
418‑G Other matters

Guide to Division 418

418‑1  What this Division is about

      Generally, you are entitled to a tax offset for an income year for exploration credits issued to you for the income year.
      A greenfields minerals explorer can create exploration credits for an income year. Before creating exploration credits, the explorer must obtain an allocation of exploration credits from the Commissioner for the year. Exploration credits cannot be created for the 2025‑26 income year or later income years.
      The exploration credits created for an income year cannot exceed an amount based on the explorer's greenfields minerals expenditure or tax loss for the year. If the explorer's exploration credits allocation for the year is smaller than that amount, the amount of exploration credits that the explorer can create will be reduced to sit within the allocation. However, any unused allocation of exploration credits from the preceding year generally would be carried over and so would increase the amount of exploration credits that the explorer can create.
      An