Document ID: chunk:federal_register_of_legislation:C2015C00124:clause:6_9:p1
Version: federal_register_of_legislation:C2015C00124
Segment Type: clause
Provision Reference: sch 6 cl 9 (pt 1/2)
Character Range: 98391–101033

9  Subsection 41(1)
Repeal the subsection, substitute:
 (1) If a person (the eligible person) makes or made a payment wholly or partly to procure the carrying on or providing of operations, facilities or other things of a kind referred to in section 37, 38 or 39 by another person, then:
 (a) for the purposes of this Act:
 (i) the operations, facilities or other things are taken to have been carried on or provided by the eligible person and not by the other person; and
 (ii) to the extent that the payment is to procure the carrying on or providing of the operations, facilities or other things—it is taken to have been made by the eligible person in carrying on or providing the operations, facilities or other things; and
 (b) if subsection (1A) does not apply to the other person in relation to the payment—to the extent that the payment is to procure the carrying on or providing of the operations, facilities or other things, the payment is taken, for the purposes of sections 37, 38, 39 and 44, to have the same character and nature as the operations, facilities or other things procured; and
 (c) if subsection (1A) applies to the other person in relation to the payment—to the extent that:
 (i) the payment is to procure the carrying on or providing of the operations, facilities or other things; and
 (ii) the payment relates to use of property on which the other person has incurred capital expenditure;
  the payment is taken, for the purposes of those sections, to have the same character and nature as the operations, facilities or other things procured; and
 (d) if subsection (1A) applies to the other person in relation to the payment—to the extent that:
 (i) the payment is to procure the carrying on or providing of the operations, facilities or other things; and
 (ii) the payment does not relate to use of property on which the other person has incurred capital expenditure;
  the payment is taken, for the purposes of those sections, to be of the same amount, and to have the same character and nature, as the expenditure the other person incurred in carrying on or providing the operations, facilities or other things procured.
Note: If the payment is excluded expenditure, it will not be exploration expenditure under section 37, general project expenditure under section 38 or closing‑down expenditure under section 39. However, if paragraph (1)(d) applies to the payment, the amount taken to be excluded expenditure may be reduced under subsection (1D) of this section.
 (1A) This subsection applies to the other person in relation to a payment if, at the time the payment is made, the other person:
 (a) holds an