Document ID: chunk:federal_register_of_legislation:C2015A00130:clause:1_10:p3
Version: federal_register_of_legislation:C2015A00130
Segment Type: clause
Provision Reference: sch 1 cl 10 (pt 3/4)
Character Range: 28240–31088

for any economic benefit involved in splitting your interest.

40‑1115  Deductions relating to receipt of exploration benefits
 (1) If:
 (a) under a *farm‑in farm‑out arrangement, you receive an *exploration benefit in exchange for providing a part of your interest in a *mining, quarrying or prospecting right; and
 (b) because of section 40‑1105, the *termination value of the interest you provide is reduced (including reduced to nil);
you are not entitled to a deduction under a provision of this Act in relation to your expenditure consisting of the provision of that part.
 (2) If:
 (a) under a *farm‑in farm‑out arrangement, you receive an *exploration benefit in exchange for providing a part of your interest in a *mining, quarrying or prospecting right; and
 (b) because of section 40‑1105, the *termination value of the interest you provide is reduced (including reduced to nil); and
 (c) the exploration benefit consists of another party to the arrangement funding on your behalf, or undertaking to fund on your behalf, expenditure that you incur in relation to exploration or prospecting;
your entitlement (if any) to a deduction under a provision of this Act in relation to that expenditure is reduced to the same extent as the extent to which the expenditure is reasonably attributable to the exploration benefit.

40‑1120  Cost base and reduced cost base of exploration benefits etc.
  If:
 (a) under a *farm‑in farm‑out arrangement, you receive an *exploration benefit; and
 (b) the benefit involves one or more undertakings of the kinds referred to in subparagraphs 40‑1100(2)(a)(ii) and (iv);
the first element of the *cost base and the *reduced cost base of the benefit are reduced by the *market value of the undertakings.

40‑1125  Effect of exploration benefits on the cost of mining, quarrying or prospecting information
  If:
 (a) you *hold a *depreciating asset that is *mining, quarrying or prospecting information; and
 (b) under a *farm‑in farm‑out arrangement, you receive an *exploration benefit; and
 (c) an amount or expenditure would, apart from this section, be included in the 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