Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Section 10 - 5 (after table item headed "general insurance companies and companies that self insure")
Insert:
geothermal energy |
|
providing geothermal exploration information ....... | 15 - 40 |
2 Section 12 - 5 (table item headed "capital allowances")
Omit:
exploration or prospecting .................... | 40 - 80(1), 40 - 730 |
substitute:
exploration or prospecting .................... | 40 - 80(1) and (1A), 40 - 730 |
geothermal exploration information .............. | Subdivision 40 - B |
geothermal exploration rights .................. | Subdivision 40 - B |
3 Section 15 - 40 (heading)
Repeal the heading, substitute:
15 - 40 Providing mining, quarrying or prospecting information or geothermal exploration information
4 Section 15 - 40
After "prospecting information", insert "or * geothermal exploration information".
5 After paragraph 40 - 30(2)(b)
Insert:
(ba) * geothermal exploration rights;
(bb) * geothermal exploration information;
6 Section 40 - 40 (after table item 9)
Insert:
9A | * Geothermal exploration information that an entity has and that is relevant to: (a) * geothermal energy extraction carried on, or proposed to be carried on, by the entity; or (b) a * business carried on by the entity that includes * exploration or prospecting for * geothermal energy resources from which energy can be extracted by geothermal energy extraction; whether or not the information is generally available | The entity |
7 After subsection 40 - 80(1)
Insert:
(1A) The decline in value of a * depreciating asset you * hold is the asset's * cost if:
(a) you first use the asset for * exploration or prospecting for * geothermal energy resources from which energy can be extracted by * geothermal energy extraction; and
(b) when you first use the asset, you do not use it for:
(i) development drilling for geothermal energy resources; or
(ii) operations in the course of working a property containing geothermal energy resources; and
(c) you satisfy one or more of these subparagraphs at the asset's * start time:
(i) you carry on geothermal energy extraction;
(ii) it would be reasonable to conclude you proposed to carry on geothermal energy extraction;
(iii) you carry on a * business of, or a business that included, exploration or prospecting for geothermal energy resources from which energy can be extracted by geothermal energy extraction, and expenditure on the asset was necessarily incurred in carrying on that business.
8 Subsection 40 - 290(5)
Repeal the subsection, substitute:
Exception: mining, quarrying or prospecting information and geothermal exploration information
(5) This section does not apply to * mining, quarrying or prospecting information or * geothermal exploration information.
9 Subsection 40 - 300(2) (at the end of the table)
Add:
12 | You stop * holding a * geothermal exploration right relating to an area because you * acquire a * geothermal energy extraction right relating to the same area or an area that is not significantly different | Zero |
10 Paragraph 40 - 630(1)(b)
After "operations", insert "or * geothermal energy extraction".
11 Subsection 40 - 630(1) (note)
After "operations", insert "or geothermal energy extraction".
12 Paragraphs 40 - 630(1A)(b), (1B)(b) and (3)(b)
After "operations", insert "or * geothermal energy extraction".
13 Paragraph 40 - 650(3)(a)
After "operations", insert "or * geothermal energy extraction".
14 At the end of paragraph 40 - 650(3)(b)
Add "or that extraction".
15 Before subsection 40 - 730(1)
Insert:
Exploration or prospecting for minerals or quarry materials
16 After subsection 40 - 730(2)
Insert:
Exploration or prospecting for geothermal energy resources
(2A) You can deduct expenditure you incur in an income year on * exploration or prospecting for * geothermal energy resources from which energy can be extracted by * geothermal energy extraction if:
(a) you carried on geothermal energy extraction; or
(b) it would be reasonable to conclude you proposed to carry on geothermal energy extraction; or
(c) you carried on a * business of, or a business that included, exploration or prospecting for geothermal energy resources from which energy can be extracted by geothermal energy extraction, and the expenditure was necessarily incurred in carrying on that business.
(2B) However, you cannot deduct expenditure under subsection ( 2A) if it is expenditure on:
(a) development drilling for * geothermal energy resources; or
(b) operations in the course of working a property containing geothermal energy resources.
No deduction under this section for cost of depreciating asset
17 Subsection 40 - 730(3)
Omit "Also, you cannot deduct expenditure under subsection ( 1)", substitute "You cannot deduct expenditure under subsection ( 1) or (2A)".
18 Before subsection 40 - 730(4)
Insert:
Definitions
19 Paragraph 40 - 730(4)(b)
After "petroleum mining", insert "and for * geothermal energy resources".
20 Paragraph 40 - 730(4)(c)
After "materials", insert ", or of extracting energy from geothermal energy resources,".
21 At the end of subsection 40 - 730(4)
Add:
; and (e) obtaining * geothermal exploration information associated with the search for, and evaluation of, areas containing geothermal energy resources.
22 After subsection 40 - 730(7)
Insert:
(7A) Geothermal energy resources means matter occurring naturally within the Earth and containing energy as heat.
(7B) Geothermal energy extraction means operations that are for:
(a) the extraction of energy from * geothermal energy resources; and
(b) the * purpose of producing assessable income.
23 At the end of section 40 - 730
Add:
(9) Geothermal exploration information is geological, geophysical or technical information that:
(a) relates to the presence, absence or extent of * geothermal energy resources in an area; or
(b) is likely to help in determining the presence, absence or extent of such resources in an area.
24 Subparagraph 43 - 70(2)(fa)(iv)
After "40 - 80(1)", insert "or (1A)".
25 At the end of Subdivision 112 - A
Add:
112 - 38 Geothermal extraction rights
The first element of the * cost base and * reduced cost base of a * geothermal energy extraction right is nil if:
(a) you * acquire the right because you * held a * geothermal exploration right; and
(b) you stopped holding the geothermal exploration right because you acquired the geothermal energy extraction right; and
(c) the area the geothermal energy extraction right relates to is the same as, or not significantly different from, the area the geothermal exploration right related to.
26 After paragraph 165 - 55(2)(b)
Insert:
(ba) deductions for exploration or prospecting for * geothermal energy resources (see section 40 - 80 and Subdivision 40 - H);
27 Paragraphs 716 - 300(1)(b) and (c)
After "40 - 80(1)", insert "or (1A)".
28 Subsection 716 - 300(1) (note)
Omit "Subsection 40 - 80(1), which is in that Subdivision, provides", substitute "Subsections 40 - 80(1) and (1A), which are in that Subdivision, provide".
29 Subsection 995 - 1(1)
Insert:
"geothermal energy extraction" has the meaning given by subsection 40 - 730(7B).
30 Subsection 995 - 1(1)
Insert:
"geothermal energy extraction right" means:
(a) an authority, licence, permit or right under an * Australian law to carry on * geothermal energy extraction; or
(b) a lease of land that allows the lessee to carry on geothermal energy extraction on the land; or
(c) an interest in such an authority, licence, permit, right or lease.
31 Subsection 995 - 1(1)
Insert:
"geothermal energy resources" has the meaning given by subsection 40 - 730(7A).
32 Subsection 995 - 1(1)
Insert:
"geothermal exploration information" has the meaning given by subsection 40 - 730(9).
33 Subsection 995 - 1(1)
Insert:
"geothermal exploration right" means:
(a) an authority, licence, permit or right under an * Australian law to explore for * geothermal energy resources; or
(b) a lease of land that allows the lessee to explore for geothermal energy resources on the land; or
(c) an interest in such an authority, licence, permit, right or lease.
34 Application of amendments
(1) The amendments of section 15 - 40 of the Income Tax Assessment Act 1997 made by this Schedule apply to amounts received on or after 1 July 2012.
(2) The amendments of sections 40 - 30, 40 - 40, 40 - 80, 40 - 290 and 716 - 300 of the Income Tax Assessment Act 1997 made by this Schedule apply to depreciating assets whose start time is on or after 1 July 2012.
(3) The amendment of section 40 - 300 of the Income Tax Assessment Act 1997 made by this Schedule applies to depreciating assets that started to be held on or after 1 July 2012.
(4) The amendments of sections 40 - 630 and 40 - 650 and subsection 40 - 730(3) of the Income Tax Assessment Act 1997 made by this Schedule apply to expenditure incurred on or after 1 July 2012.
(5) Subsections 40 - 730(2A) and (2B) of the Income Tax Assessment Act 1997 apply to expenditure incurred on or after 1 July 2012.
(6) Section 112 - 38 of the Income Tax Assessment Act 1997 applies to geothermal energy extraction rights acquired on or after 1 July 2012.