Document ID: chunk:federal_register_of_legislation:C2021C00321:clause:1_2:p1
Version: federal_register_of_legislation:C2021C00321
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/11)
Character Range: 7474–10355

2  Subdivisions 418‑D and 418‑E
Repeal the Subdivisions, substitute:

Subdivision 418‑D—Creating exploration credits

Table of sections
418‑70 Entities that may create exploration credits
418‑75 Meaning of greenfields minerals explorer
418‑80 Meaning of greenfields minerals expenditure
418‑81 Meaning of exploration credits allocation for an income year
418‑82 When does an entity have an unused allocation of exploration credits from an income year
418‑85 Exploration credits must not exceed maximum exploration credit amount
418‑95 Effect on tax losses of creating exploration credits

418‑70  Entities that may create exploration credits
 (1) An entity may create exploration credits for an income year if:
 (a) the entity was a *greenfields minerals explorer in the income year; and
 (b) the entity has an *exploration credits allocation for the income year or an *unused allocation of exploration credits from the immediately preceding income year.
 (2) The entity cannot create *exploration credits for an income year before income tax is assessed for the entity for the year.
 (3) The entity cannot create *exploration credits for the 2021‑22 income year or a later income year.
 (4) A failure to comply with subsection (1) or (2) does not invalidate the creation of an *exploration credit.
 (5) An *exploration credit is to be expressed as an amount.
 (6) The entity cannot make more than one decision to create *exploration credits for an income year, and the decision is final and irrevocable.

418‑75  Meaning of greenfields minerals explorer
 (1) An entity is a greenfields minerals explorer in an income year if:
 (a) the entity has *greenfields minerals expenditure for the income year; and
 (b) during the income year, the entity is a disclosing entity (within the meaning of section 111AC of the Corporations Act 2001); and
 (c) during the income year, the entity is a *constitutional corporation; and
 (d) during the income year, and during the immediately preceding income year, neither:
 (i) the entity; nor
 (ii) any other entity that is *connected with or is an *affiliate of the entity;
  carried on any mining operations on a mining property for extracting *minerals (except *petroleum) from their natural site, for the *purpose of producing assessable income.
 (2) However, an entity is not a greenfields minerals explorer in an income year in which either or both of the following happens, or in any subsequent income year:
 (a) the entity fails to comply with a request of the Commissioner under subsection 418‑80(5);
 (b) a determination under section 418‑185 has effect.
Note 1: Under subsection 418‑80(5), the Commissioner may request a report on an area in relation to which an entity has greenfields minerals expenditure.
Note 2: Under section 418‑185, the Commissioner may determine that an entity that is, or has been, liable to excess exploration