Document ID: chunk:federal_register_of_legislation:C2012A00018:clause:2_15:p1
Version: federal_register_of_legislation:C2012A00018
Segment Type: clause
Provision Reference: sch 2 cl 15 (pt 1/2)
Character Range: 73294–75769

15  Meaning of interim expenditure
 (1) An amount of expenditure that a person incurs relating to an interest in an onshore petroleum project or the North West Shelf project is interim expenditure relating to the interest to the extent that:
 (a) the amount:
 (i) relates to a depreciating asset that is used, or being constructed for use, on 1 July 2012 in carrying on project activities relating to the project; and
 (ii) is included in the cost of the asset under Subdivision 40‑C of the Income Tax Assessment Act 1997; and
 (iii) was incurred during the period starting on the day provided under subclause (3) or (4) and ending at the end of 30 June 2012; or
 (b) the amount:
 (i) relates to a CGT asset that is not a depreciating asset and that is used, or being constructed for use, on 1 July 2012 in carrying on project activities relating to the project; and
 (ii) is included in the cost base of the asset; and
 (iii) was incurred during the period starting on the day provided under subclause (3) or (4) and ending at the end of 30 June 2012; or
 (c) the amount:
 (i) is mining capital expenditure (within the meaning of the Income Tax Assessment Act 1997) relating to project activities relating to the project; and
 (ii) was incurred between 2 May 2010 and 30 June 2012.
 (2) However, if the asset is a CGT asset (but not a depreciating asset), treat the amount of the interim expenditure as not including any part of the amount that consists of the third element of the cost base under subsection 110‑25(4) of the Income Tax Assessment Act 1997.

Start of the expenditure period
 (3) If, under Part 2, the book value approach is the valuation approach for the interest in the petroleum project, the period starts:
 (a) if subclause (5) applies to the asset:
 (i) on the day of the financial report (if any) mentioned in paragraph 12(2)(a) of this Schedule in relation to the accounts in which the value of the asset is recorded; or
 (ii) if subparagraph (i) of this paragraph does not apply—on 2 May 2010; or
 (b) otherwise—on the first day, before the end of 30 June 2012, from which the person held the asset at all times until the end of 30 June 2012.
Example: The person bought an asset on 1 January 2011 and sold it on 1 May 2011. The person bought the asset again on 1 June 2011 and still held it at the end of 30 June 2012.
 The expenditure incurred in buying the asset the first time (on 1 January 2011) is not interim expenditure, because the person did