Document ID: chunk:federal_register_of_legislation:C2018C00085:clause:6_2:p1
Version: federal_register_of_legislation:C2018C00085
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 1/13)
Character Range: 83725–86596

2  At the end of Part 3‑45
Add:

Division 418—Exploration for minerals

Table of Subdivisions
 Guide to Division 418
418‑A Object of this Division
418‑B Exploration development incentive tax offset
418‑C Exploration development incentive franking credit
418‑D Creating exploration credits
418‑E Issuing exploration credits
418‑F Excess exploration credits

Guide to Division 418

418‑1  What this Division is about

      Generally speaking, you are entitled to a tax offset for exploration credits issued to you, but exploration credits issued to corporate tax entities instead give rise to franking credits.
      For the 2015‑16, 2016‑17 or 2017‑18 income year, a greenfields minerals explorer can create, and then issue, exploration credits for the explorer's greenfields minerals expenditure for the previous income year. However, the total amount of exploration credits for an income year is limited to the explorer's maximum exploration credit amount.
      The explorer is liable to pay excess exploration credit tax if the explorer issues exploration credits in excess of that maximum exploration credit amount.
Note: Excess exploration credit tax is imposed by the Excess Exploration Credit Tax Act 2015, and the amount of the tax is set out in that Act.

Subdivision 418‑A—Object of this Division

Table of sections
418‑5 Object of this Division

418‑5  Object of this Division
  The object of this Division is to encourage investment in minerals exploration in Australia by allowing the benefit of losses from minerals exploration to flow to shareholders who share in the risk of the exploration.

Subdivision 418‑B—Exploration development incentive tax offset

Table of sections

Entitlement to exploration development incentive tax offset
418‑10 Who is entitled to the tax offset—ordinary case
418‑15 Who is entitled to the tax offset—life insurance company
418‑20 Entitlement of member of a trust or partnership to a share of exploration credits

Amount of exploration development incentive tax offset
418‑25 The amount of the tax offset
418‑30 Reduced amount of the tax offset for certain trusts

Entitlement to exploration development incentive tax offset

418‑10  Who is entitled to the tax offset—ordinary case
  You are entitled to a *tax offset for an income year if:
 (a) an *exploration credit is issued to you under Subdivision 418‑E for the income year; and
 (b) you are not:
 (i) a *corporate tax entity; or
 (ii) a trust (other than a trust in relation to which some or all of the liability of the trustee to tax is provided under subsection 98(1) or (2) or 99(2) or (3) of the Income Tax Assessment Act 1936); or
 (iii) a partnership; or
 (iv) an *exempt entity (other than an *exempt institution that is eligible for a refund); and
 (c) you are an Australian resident during the whole of that income year.

418‑15  Who is entitled to the tax