Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/54)
Character Range: 1103885–1106717

second element of the *cost of the asset;
do not include that amount or expenditure in the second element to the extent (if any) that it is reasonably attributable to the exploration benefit.

Consequences for transferees

40‑1130  Consequences of certain exploration benefits provided under farm‑in farm‑out arrangements
 (1) If, under a *farm‑in farm‑out arrangement, you provide an *exploration benefit in relation to the transfer to you of part of another entity's interest in a *mining, quarrying or prospecting right:
 (a) the first element of the *cost of the part of the interest is reduced by the *market value of the exploration benefit; and
 (b) if, for providing the exploration benefit, you receive a reward as a result of which an amount would, apart from this paragraph, be included in your assessable income—the entire amount of the reward is not assessable income and is not *exempt income; and
 (c) subsection 40‑730(3) does not apply in relation to expenditure that you incur under the arrangement if the reduction in market value under paragraph (a) took into account your liability to incur that expenditure.
 (2) A reduction under paragraph(1)(a) may be a reduction to nil.

Division 41—Additional deduction for certain new business investment

Guide to Division 41

41‑1  What this Division is about
      You may be able to deduct an amount in relation to a depreciating asset for the 2008‑09, 2009‑10, 2010‑11 or 2011‑12 income year if:

                (a) you can deduct an amount for the decline in value for the asset for the relevant year under Subdivision 40‑B; and
                (b) you make certain new investments in respect of the asset in the period starting on 13 December 2008 and ending on 31 December 2009; and
                (c) the total of those new investments is at least $1000 (for small businesses) or $10,000 (for other businesses).

Table of sections

Operative provisions
41‑5 Object of Division
41‑10 Entitlement to deduction for investment
41‑15 Amount of deduction
41‑20 Recognised new investment amount
41‑25 Investment commitment time
41‑30 First use time
41‑35 New investment threshold

Operative provisions

41‑5  Object of Division
  The object of this Division is to provide a temporary business tax break for Australian businesses using assets in Australia, with a view to encouraging business investment and economic activity.

41‑10  Entitlement to deduction for investment
 (1) You can deduct an amount for an income year in relation to an asset if:
 (a) the asset is a *depreciating asset, other than an intangible asset; and
 (b) you can deduct an amount under section 40‑25 in relation to the asset for the income year; and
 (c) the income year is the 2008‑09, 2009‑10, 2010‑11 or 2011‑12 income year; and
 (d) the total of the *recognised new investment amounts