Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p29
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 29/95)
Character Range: 5621873–5624670

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.
Note: The entity cannot have an unused allocation of exploration credits from the 2020‑21 income year: see subsection 418‑82(3A).
 (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 2025‑26 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 credit tax is not to be treated as a greenfields minerals explorer.

418‑80  Meaning of greenfields minerals expenditure
 (1) An entity's greenfields minerals expenditure for an income year is the sum of:
 (a) the amounts of any deductions to which the entity is entitled under section 40‑25 for that income year in relation to declines in value that:
 (i) are declines in value of *depreciating assets used for *exploration or prospecting for *minerals