Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p28
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 28/95)
Character Range: 5619186–5622120

year is reduced by the sum of amounts of the exploration credits taken to be issued to those members.

Subdivision 418‑C—Junior minerals exploration incentive franking credit

Table of sections
418‑50 Junior minerals exploration incentive franking credit—ordinary case
418‑55 Junior minerals exploration incentive franking credit—life insurance company

418‑50  Junior minerals exploration incentive franking credit—ordinary case
 (1) A *franking credit arises in the *franking account of a *corporate tax entity (other than a *life insurance company) if:
 (a) an *exploration credit is issued to the entity under Subdivision 418‑E during an income year; and
 (b) if the entity were not a corporate tax entity, the entity would be entitled to a *tax offset under Subdivision 418‑B in relation to the exploration credit.
 (2) The amount of the *franking credit is the amount of the *tax offset to which the entity would be entitled under Subdivision 418‑B if:
 (a) the entity were not a *corporate tax entity; and
 (b) no other *exploration credits were issued to the entity during the income year.
 (3) The *franking credit arises at the same time the *exploration credit is issued.

418‑55  Junior minerals exploration incentive franking credit—life insurance company
 (1) A *franking credit arises in the *franking account of a *life insurance company if:
 (a) an *exploration credit is issued to the life insurance company under Subdivision 418‑E during an income year; and
 (b) paragraph 418‑15(1)(d) does not apply in relation to the exploration credit; and
 (c) if that paragraph were to apply in relation to the credit, the life insurance company would be entitled to a *tax offset under Subdivision 418‑B in relation to the exploration credit.
 (2) The amount of the *franking credit is the amount of the *tax offset to which the *life insurance company would be entitled under Subdivision 418‑B if no other *exploration credits were issued to the life insurance company during the income year.
 (3) The *franking credit arises at the same time the *exploration credit is issued.

Subdivision 418‑D—Creating exploration credits

Table of sections
418‑70 Entities that may create exploration credits
418‑75 Meaning of greenfields minerals explorer
418‑80 Meaning of greenfields minerals expenditure
418‑81 Meaning of exploration credits allocation for an income year
418‑82 When does an entity have an unused allocation of exploration credits from an income year
418‑85 Exploration credits must not exceed maximum exploration credit amount
418‑95 Effect on tax losses of creating exploration credits

418‑70  Entities that may create exploration credits
 (1) An entity may create exploration credits for an income year if:
 (a) the entity was a *greenfields minerals explorer in the income year; and
 (b) the entity has an *exploration credits allocation for the income year or an *unused allocation of exploration credits from