Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 330.245

(1) The amount included in the agreement cannot exceed:
. the amount of expenditure the buyer incurs in the acquisition; less:
. any amount that is the subject of an agreement made under section 330-180
(which is about the transfer of an *entitlement to an eligible cash bidding
amount).

(2) The amount included also cannot exceed the total of:

   (a)  the *allowable capital expenditure the seller incurs before the
        transaction in relation to the area that is the subject of the right
        or information, except so much of that expenditure as:

        (i)    the seller has deducted or can deduct for an income year before
               the income year in which the transaction occurs; or

        (ii)   is attributable to an amount of expenditure incurred in
               relation to that area that has been taken into account in an
               earlier agreement under section 330- 235; and

   (b)  the *exploration or prospecting expenditure the seller incurs before
        the transaction, except so much of that expenditure as:

        (i)    the seller has deducted or can deduct for an income year before
               the income year in which the transaction occurs; or

        (ii)   has been taken into account in an earlier agreement under
               section 330- 235; or

        (iii)  is expenditure on *plant in use by the seller when the
               transaction happens; and

   (c)  an amount included in the seller's assessable income under section
        330-485 (which is about how to do a balancing adjustment) in relation
        to property the buyer acquires from the seller in connection with the
        transaction. Note 1: Certain expenditure that can be attributed to
        expenditure on plant does not count in working out the amount of
        allowable capital expenditure of the seller: see section 330-25 of the
        Income Tax  (Transitional Provisions) Act 1997 . Note 2: Subdivision
        330-F (which is about excess deductions) disallows deductions that the
        seller would otherwise be entitled to.

(3) If the agreement specifies more than the maximum amount that this section
allows to be included in the agreement, that maximum amount is taken to be
specified in the agreement instead.