Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 40.122

  (1)   This section applies if:

  (a)   a * depreciating asset you * hold is a * mining, quarrying or prospecting right (the old right ) that relates to an area; and

  (b)   you begin to hold another depreciating asset (the partial new right ) that:

  (i)   is a mining, quarrying or prospecting right; and

  (ii)   relates to an area that is a part of the area that the old right relates to; and

  (c)   the old right does not end when you begin to hold the partial new right.

  (2)   This Division applies as if:

  (a)   when you begin to hold the partial new right, the old right is split into:

  (i)   an asset that is the partial new right; and

  (ii)   an asset that is the old right; and

  (b)   the assets mentioned in subparagraphs   (a)(i) and (ii) are both continuations of the old right.

Note:   For the cost of the split assets, see section   40 - 205.