Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 12/24)
Character Range: 1056544–1059367

which you:
 (i) carried on *mining and quarrying operations; or
 (ii) conducted *exploration or prospecting; or
 (iii) conducted *ancillary mining activities; or
 (b) a *mining building site.
Note 1: If an amount of the expenditure is recouped, the amount may be included in your assessable income: see Subdivision 20‑A.
Note 2: If Division 250 applies to you and an asset that is land:
(a) if section 250‑150 applies—you cannot deduct expenditure you incur in relation to the land to the extent specified under subsection 250‑150(3); or
(b) otherwise—you cannot deduct such expenditure.
 (2) However, a provision of this Act (except Division 8 (which is about deductions)) that expressly prevents or restricts the operation of that Division applies in the same way to this section.
 (3) However, you cannot deduct expenditure under subsection (1) to the extent that it forms part of the *cost of a *depreciating asset.
 (4) Mining site rehabilitation is an act of restoring or rehabilitating a site or part of a site to, or to a reasonable approximation of, the condition it was in before *mining and quarrying operations, *exploration or prospecting or *ancillary mining activities were first started on the site, whether by you or by someone else.
 (5) Partly restoring or rehabilitating such a site counts as mining site rehabilitation (even if you had no intention of completing the work).
 (6) For a *mining building site, the time when *ancillary mining activities were first started on the site is the earliest time when the buildings, improvements or *depreciating assets concerned were located on the site.

40‑740  Meaning of ancillary mining activities and mining building site
 (1) Any of the following are ancillary mining activities:
 (a) preparing a site for you to carry on *mining and quarrying operations;
 (b) providing water, light or power for, access to, or communications with, a site on which you carry on, or will carry on, mining and quarrying operations;
 (c) *minerals treatment of *minerals or minerals treatment of quarry materials, obtained by you in carrying on mining and quarrying operations;
 (d) storing (whether before or after minerals treatment) such minerals, *petroleum or quarry materials in relation to the operation of a *depreciating asset for use primarily and principally in treating such minerals or quarry materials;
 (e) liquefying natural gas obtained from mining and quarrying operations you carry on.
 (2) A mining building site is a site, or a part of a site, where there are *depreciating assets that are or were necessary for you to carry on *mining and quarrying operations. However, a mining building site does not include anything covered by the definition of housing and welfare.

40‑745  No deduction for certain expenditure
  Expenditure on these things is not