Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p30
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 30/95)
Character Range: 5624427–5627173

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 in an area to which subsection (3) of this section applies; and
 (ii) are worked out under subsection 40‑80(1); and
 (b) the amounts of any deductions for that income year to which the entity is entitled in relation to expenditure:
 (i) that is of a kind referred to in subsection 40‑730(1); and
 (ii) in relation to which the entity satisfies one or more of paragraphs 40‑730(1)(a) to (c); and
 (iii) that is expenditure on exploration or prospecting for minerals in an area to which subsection (3) of this section applies.
 (2) For the purposes of subsection (1), disregard a deduction to the extent that it relates to:
 (a) matters other than:
 (i) declines in value of *depreciating assets used for; or
 (ii) expenditure on;
  *exploration or prospecting for *minerals in an area to which subsection (3) of this section applies; or
 (b) exploration or prospecting for *petroleum or oil shale; or
 (c) activities (such as feasibility studies) undertaken to identify the viability of a mineral resource rather than its existence.
 (3) This subsection applies to an area:
 (a) that is in Australia; and
 (b) in relation to which the entity *holds a *mining, quarrying or prospecting right at the time of incurring the expenditure, or is the transferee under a *farm‑in farm‑out arrangement; and
 (c) that has not been identified as containing a mineral resource that is at least inferred in a report prepared in accordance with the requirements of:
 (i) unless subparagraph (ii) applies—the document that is known as the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves and that took effect on 20 December 2012; or
Note: This document is commonly referred to as the JORC Code (2012 Edition).
 (ii) such other document as the regulations prescribe; and
 (d) that is not, and is not in, any of the following:
 (i) the coastal sea of Australia (within the meaning of subsection 15B(4) of the Acts Interpretation Act 1901);
 (ii) an area referred to in subsection 960‑505(2).
 (4) For the purposes of paragraph (3)(c), disregard any mineral resource, identified in a report of a kind referred to in that paragraph, that does not include *minerals the *exploration or prospecting for which involved:
 (a) use of assets referred to in paragraph (1)(a); or
 (b) expenditure referred to in paragraph (1)(b).
 (5) The Commissioner may request an entity that is a *greenfields minerals explorer in an income year to prepare, within the period specified in the request,