Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 1/3)
Character Range: 908368–911376

3                                                                                                                   A *mining, quarrying or prospecting right, or *mining, quarrying or prospecting information, relating to *mining and quarrying operations to obtain quarry materials                         The life of the quarry or proposed quarry to which the right or information relates or, if there is more than one, the life of the quarry that has the longest estimated life

 (10A) However, if the only reason that subsection 40‑80(1) does not apply to the *mining, quarrying or prospecting right, or *mining, quarrying or prospecting information, is that the right or information does not meet the requirements of paragraph 40‑80(1)(d) or (e), the effective life of the right or information is the shorter of:
 (a) the period that would, apart from this subsection, be the effective life of the information or right under subsection (10); and
 (b) 15 years.
 (11) You work out the period in subsection (10):
 (a) as from the *start time of the *mining, quarrying or prospecting right or *mining, quarrying or prospecting information; and
 (b) by reference only to the period of time over which the reserves, reasonably estimated using an appropriate accepted industry practice, are expected to be extracted from the mine, *petroleum field or quarry.
 (12) The effective life of a *mining, quarrying or prospecting right, or *mining, quarrying or prospecting information, is 15 years if the right or information does not relate to:
 (a) a mine or proposed mine; or
 (b) a petroleum field or proposed petroleum field; or
 (c) a quarry or proposed quarry.

40‑100  Commissioner's determination of effective life
 (1) The Commissioner may make a written determination specifying the effective life of *depreciating assets. The determination may specify conditions for particular depreciating assets.
 (2) A determination may specify a day from which it takes effect for *depreciating assets specified in the determination.
 (3) A determination may operate retrospectively to a day specified in the determination if:
 (a) there was no applicable determination at that day for the *depreciating asset covered by the determination; or
 (b) the determination specifies a shorter *effective life for the depreciating asset covered by the determination than was previously applicable.

Criteria for making a determination
 (4) The Commissioner is to make a determination of the effective life of a *depreciating asset in accordance with subsections (5) and (6).
 (5) Firstly, estimate the period (in years, including fractions of years) the asset can be used by any entity for one or more of the following purposes:
 (a) a *taxable purpose;
 (b) the purpose of producing *exempt income or *non‑assessable non‑exempt income;
 (c) the purpose of conducting *R&D activities, assuming that this is reasonably likely.
 (6) Secondly, if relevant for the asset:
 (a) assume the asset will be subject to wear and tear at