Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 1997 - SECT 330.15

(1) Expenditure (whether of a capital nature or not) you incur in the 1997-98
income year or a later income year on *exploration or prospecting for
*minerals, or *quarry materials, obtainable by

*eligible mining or quarrying operations is deductible for that income year.
Note: The amount you can deduct for that income year is subject to the excess
deduction rules: see Subdivision 330-F.

(2) However, you can deduct it only if during that income year you satisfy one
or more of the tests set out in the following table:

Item    For this type of expenditure:
the deductibility tests are:
1.      *Exploration or prospecting for *minerals (other than


*petroleum)
1. You carried on *eligible mining operations
(other than *petroleum mining).
2. It would be reasonable to conclude you proposed
to carry on such operations.
3. You carried on a *business of, or a *business
that included, *exploration or prospecting for

*minerals (other than *petroleum) obtainable by such
operations, and the expenditure was necessarily
incurred in carrying on that business.
2.      *Exploration or prospecting for *quarry materials

1. You carried on *eligible quarrying operations.
2. It would be reasonable to conclude you proposed
to carry on such operations.
3. You carried on a *business of, or a *business
that included, *exploration or prospecting for

*quarry materials obtainable by such operations, and
the expenditure was necessarily incurred in carrying
on that business.
3.      *Exploration or prospecting for *petroleum

1. You carried on *eligible mining operations in
the course of *petroleum mining.
2. It would be reasonable to conclude you proposed
to carry on such operations.
3. You carried on a *business of, or a *business
that included, *exploration or prospecting for

*petroleum obtainable by such operations, and the
expenditure was necessarily incurred in carrying on
that business.