Document ID: chunk:federal_register_of_legislation:C2018C00085:clause:6_2:p7
Version: federal_register_of_legislation:C2018C00085
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 7/13)
Character Range: 98878–101651

the purposes of subsection (1), disregard a deduction to the extent that it relates to:
 (a) matters other than:
 (i) declines in value of *depreciating assets used for; or
 (ii) expenditure on;
  *exploration or prospecting for *minerals in an area to which subsection (3) of this section applies; or
 (b) exploration or prospecting for *petroleum or oil shale; or
 (c) activities (such as feasibility studies) undertaken to identify the viability of a mineral resource rather than its existence.
 (3) This subsection applies to an area:
 (a) that is in Australia; and
 (b) in relation to which the entity *holds a *mining, quarrying or prospecting right at the time of incurring the expenditure; and
 (c) that has not been identified as containing a mineral resource that is at least inferred in a report prepared in accordance with the requirements of:
 (i) unless subparagraph (ii) applies—the document that is known as the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves and that took effect on 20 December 2012; or
Note: This document is commonly referred to as the JORC Code (2012 Edition).
 (ii) such other document as the regulations prescribe; and
 (d) that is not, and is not in, any of the following:
 (i) the coastal sea of Australia (within the meaning of subsection 15B(4) of the Acts Interpretation Act 1901);
 (ii) an offshore area for the purpose of the Offshore Petroleum and Greenhouse Gas Storage Act 2006;
 (iii) the Joint Petroleum Development Area (within the meaning of the Petroleum (Timor Sea Treaty) Act 2003).
Note: An offshore area and the Joint Petroleum Development Area include the territorial sea, the exclusive economic zone and the continental shelf of Australia.
 (4) For the purposes of paragraph (3)(c), disregard any mineral resource, identified in a report of a kind referred to in that paragraph, that does not include *minerals the exploration or prospecting for which involved:
 (a) use of assets referred to in paragraph (1)(a); or
 (b) expenditure referred to in paragraph (1)(b).
 (5) The Commissioner may request an entity that is a *greenfields minerals explorer in an income year to prepare, within the period specified in the request, a report that:
 (a) is of the kind referred to in paragraph (3)(c); and
 (b) relates to an area in relation to which the entity has *greenfields minerals expenditure for the income year.
The request may specify the manner in which, and the form in which, the report is to be prepared.

418‑85  Exploration credits must not exceed maximum exploration credit amount
 (1) An entity must not create *exploration credits for an income year (the current income year) of a total amount that exceeds the entity's *maximum exploration credit amount for