Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 418.101

Determination allocating exploration credits

  (1)   The Commissioner may make a written determination allocating * exploration credits of an amount specified in the determination to an entity for an income year.

Circumstances in which the Commissioner must not make a determination

  (2)   The Commissioner must not make a determination allocating * exploration credits to an entity for an income year if the Commissioner is not satisfied that:

  (a)   there is a reasonable possibility that the entity will have:

  (i)   * greenfields minerals expenditure of the amount estimated by the entity in the application, or greater; and

  (ii)   a * tax loss of the amount estimated by the entity in the application, or greater; and

  (iii)   the * corporate tax rate estimated by the entity in the application; and

  (b)   the entity meets any other requirement prescribed under the regulations.

Amount of the exploration credits allocated

  (3)   The amount of the * exploration credits specified in the determination must be the smallest of the following amounts:

  (a)   the entity's estimated * greenfields minerals expenditure for the income year multiplied by the entity's estimated * corporate tax rate for the income year;

  (b)   the entity's estimated * tax loss for the income year multiplied by the entity's estimated corporate tax rate for the income year;

  (c)   either:

  (i)   5% of an amount equal to the * annual exploration cap for the income year; or

  (ii)   if another amount, or a method for working out another amount, is prescribed--the other amount.

Determination not a legislative instrument

  (4)   A determination made under subsection   (1) is not a legislative instrument.