Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 3/29)
Character Range: 2205331–2208088

disposed of under a *farm‑in farm‑out arrangement; and
 (c) you have received an *exploration benefit in respect of the event happening;
in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.
 (2) If:
 (a) *CGT event C2 arises as a result of an *exploration benefit being provided to you; and
 (b) the exploration benefit is provided under a *farm‑in farm‑out arrangement;
in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.

116‑120  Disposals of assets involving look‑through earnout rights

Consequences for capital proceeds
 (1) If *CGT event A1 happens because you *dispose of a *CGT asset, your *capital proceeds from the disposal:
 (a) do not include the value of any *look‑through earnout right relating to the CGT asset and the disposal; and
 (b) are increased by any *financial benefit that you receive under such a look‑through earnout right; and
 (c) are reduced by any financial benefit that you provide under such a look‑through earnout right.

Remaking choices affected by the look‑through earnout right
 (2) Despite section 103‑25, you may remake any choice you made under this Part or Part 3‑3 in relation to the *CGT event if:
 (a) you provide or receive a *financial benefit under such a *look‑through earnout right; and
 (b) you remake the choice at or before the time you are required to lodge your *income tax return for the income year in which the financial benefit is provided or received.

Amending assessments affected by the look‑through earnout right
 (3) The Commissioner may amend an assessment of a *tax‑related liability if:
 (a) an entity provides or receives a *financial benefit under such a *look‑through earnout right; and
 (b) the amount of the tax‑related liability:
 (i) depends on that entity's taxable income for the income year in which the *CGT event happens; or
 (ii) is otherwise affected by that right's character as a look‑through earnout right; and
 (c) the Commissioner makes the amendment before the end of the 4‑year period starting at the end of the income year in which the last possible financial benefit becomes or could become due under the look‑through earnout right.
The tax‑related liability need not be a liability of that entity.
Note: Subparagraph (b)(ii) covers changes to the amount of that tax‑related liability that happen directly or indirectly because of subsection (1) or (2).
 (4) If at a particular time a right is taken never to have been a *look‑through earnout right because of subsection 118‑565(2), the Commissioner may amend an assessment of a *tax‑related liability for up to 4 years after that time if:
 (a) an entity provides or receives a *financial