Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p25
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 25/50)
Character Range: 140605–143080

to hold the right before 1 July 2001; and
 (b) the right is transferred after that day to another company where:
 (i) the other company is a member of the same wholly‑owned group as the original holder and was a member of that group just before that day; and
 (ii) the right was held in the period between that day and the time of the transfer by a company or companies that were members of that group on that day and at the time of the transfer.
 (1D) Division 40 of the new Act does not apply to an interest in a mining, quarrying or prospecting right that you started to hold on or after 1 July 2001 if:
 (a) you acquired the interest under an interest realignment arrangement; and
 (b) the interest was acquired in exchange for one or more other interests in other mining, quarrying or prospecting rights all of which you had started to hold before 1 July 2001.
 (1E) If:
 (a) you acquired, under an interest realignment arrangement, an interest (a new interest) in a mining, quarrying or prospecting right; and
 (b) the interest was acquired in exchange for one or more other interests (old interests) in other mining, quarrying or prospecting rights; and
 (c) you started to hold some of the old interests before 1 July 2001;
Division 40 of the new Act applies to the new interest only to the extent that the new interest was acquired in exchange for the old interests that you started to hold on or after 1 July 2001.
 (2) If, after 30 June 2001:
 (a) you dispose of a mining, quarrying or prospecting right that you started to hold before 1 July 2001 to an associate of yours (except a company that is a member of the same wholly‑owned group); or
 (b) you enter into an arrangement in relation to such a right under which you maintain, in essence, the economic ownership of the right but not its legal ownership;
the cost of the right to the purchaser is limited, for the purposes of Division 40 of the new Act, to a maximum of the costs that would have been deductible for the right under Division 330 of the former Act.
 (3) An amount that would be included in your assessable income under section 15‑40 or subsection 40‑285(1) of the new Act in respect of mining, quarrying or prospecting information you started to hold before 1 July 2001 is reduced (but not below zero) by so much of the capital cost of acquiring the information that you incurred before that day and that:
 (a) you have not deducted and cannot deduct (either immediately or over time) under the