Document ID: chunk:federal_register_of_legislation:C2018C00085:clause:6_2:p9
Version: federal_register_of_legislation:C2018C00085
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 9/13)
Character Range: 104026–106781

income year for the purposes of step 1 of the method statement in subsection (2), reduce that greenfields minerals expenditure by the sum of:
 (a) all *recoupments that the entity receives in relation to the entity's greenfields minerals expenditure for the previous income year; and
 (b) if:
 (i) an amount has been included in the entity's assessable income because a *balancing adjustment event occurs for a *depreciating asset; and
 (ii) all or part of the amount of the deduction to which the entity is entitled under section 40‑25 for the previous income year in relation to the decline in value of the asset is included in the entity's greenfields minerals expenditure for that income year;
  so much of the amount of that deduction as was included in that greenfields minerals expenditure.
 (6) A failure to comply with this section does not invalidate the creation of an *exploration credit.

418‑90  Modulation factors
 (1) The Commissioner must, by legislative instrument, declare modulation factors in accordance with this section for each of the following:
 (a) the 2015‑16 income year;
 (b) the 2016‑17 income year;
 (c) the 2017‑18 income year.
 (2) The modulation factor for an income year is to be one if the Commissioner is satisfied that the total amount of *exploration credits that could be created in respect of that income year will not exceed the following amount (the exploration credit cap) for the income year:
 (a) for the 2015‑16 income year—$25 million;
 (b) for the 2016‑17 income year—$35 million;
 (c) for the 2017‑18 income year—$40 million.
 (3) If subsection (2) does not apply, the modulation factor for the income year is to be such a number as the Commissioner is satisfied would reduce the total amount of *exploration credits that could be created in that income year to the exploration credit cap for the income year.
 (4) In ascertaining for the purposes of subsection (2) or (3) the total amount of *exploration credits that could be created in an income year (the current income year), the Commissioner is to:
 (a) use the information provided in declarations under paragraph 418‑70(1)(b) for the previous income year; and
 (b) disregard the possible application of any modulation factor.
 (5) A failure to comply with subsection (2), (3) or (4) does not invalidate the declaration of a modulation factor for an income year.
 (6) A declaration made under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the declaration.

418‑95  Effect on tax losses of creating exploration credits
 (1) If an entity creates any *exploration credits in respect of a *loss year, the amount of the entity's *tax loss for the loss year is reduced