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Resource project realignment and farm-out legislation

9 January 2015 | Exposure Draft

In the 2013-14 Budget measure limiting the immediate deductibility of expenditure on mining rights and mining information, there was a provision that the measure did not prevent the immediate deductibility of mining rights acquired under a ‘farm-in, farm-out’ arrangement (the partial exchange of a tenement interest in exchange for the farmee providing exploration services as consideration). 

The Government subsequently announced in the 2014-15 Budget that the limited immediate deductibility would also not result in a tax liability on mining rights acquired under tenement ownership realignments within a common development project.

The attached exposure draft law and draft explanatory memorandum seek to give effect to the announced measures.  The community's views are sought on the draft legislation. 

Submissions closed on Friday 6 February 2015

Key Documents

Ref Num: {699E7E33-4BF9-40A6-8BCD-EB3BA9BAA793}
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