Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 11/24)
Character Range: 1053792–1056803

specified under subsection 250‑150(3); or
(b) otherwise—you cannot deduct such expenditure.
 (2) However, you cannot deduct expenditure under subsection (1) if it is expenditure on:
 (a) development drilling for *petroleum; or
 (b) operations in the course of working a mining property, quarrying property or petroleum field.
 (3) Also, you cannot deduct expenditure under subsection (1) to the extent that it forms part of the *cost of a *depreciating asset.

Definitions
 (4) Exploration or prospecting includes:
 (a) for mining in general, and quarrying:
 (i) geological mapping, geophysical surveys, systematic search for areas containing *minerals (except *petroleum) or quarry materials, and search by drilling or other means for such minerals or materials within those areas; and
 (ii) search for ore within, or near, an ore‑body or search for quarry materials by drives, shafts, cross‑cuts, winzes, rises and drilling; and
 (b) for petroleum mining:
 (i) geological, geophysical and geochemical surveys; and
 (ii) exploration drilling and appraisal drilling; and
 (c) feasibility studies to evaluate the economic feasibility of mining minerals or quarry materials once they have been discovered; and
 (d) obtaining *mining, quarrying or prospecting information associated with the search for, and evaluation of, areas containing minerals or quarry materials.
 (5) Minerals includes *petroleum.
 (6) Petroleum means:
 (a) any naturally occurring hydrocarbon or naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state; or
 (b) any naturally occurring mixture of:
 (i) one or more hydrocarbons, whether in a gaseous, liquid or solid state; and
 (ii) one or more of the following: hydrogen sulphide, nitrogen, helium or carbon dioxide;
whether or not that substance has been returned to a natural reservoir.
 (7) Mining and quarrying operations means:
 (a) mining operations on a mining property for extracting *minerals (except *petroleum) from their natural site; or
 (b) mining operations for the purpose of obtaining petroleum; or
 (c) quarrying operations on a quarrying property for extracting quarry materials from their natural site;
for the *purpose of producing assessable income.
 (8) Mining, quarrying or prospecting information is geological, geophysical or technical information that:
 (a) relates to the presence, absence or extent of deposits of *minerals or quarry materials in an area; or
 (b) is likely to help in determining the presence, absence or extent of such deposits in an area.

40‑735  Deduction for expenditure on mining site rehabilitation
 (1) You can deduct for an income year expenditure you incur in that year to the extent it is on *mining site rehabilitation of:
 (a) a site on 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