Western Australian Consolidated Acts Western Australian Consolidated Acts (1) In this
section —
exploration amount , in relation to a farm-in
agreement, means an amount to be expended, after the agreement is made, on
exploration or development of the mining tenement carried out after the
agreement is made;
farm-in agreement means an agreement between the
owner of a mining tenement and another person that, after the other person
expends the exploration amount specified in the agreement, that other person
will have a right to acquire an interest in the mining tenement that
is —
(a)
specified in the agreement; and
(b) to
be held with the owner of the mining tenement;
mining tenement means —
(a) a
mining tenement held under the Mining Act 1978 , being a mining tenement
within the meaning of that Act or the Mining Act 1904 2 ; and
(b) a
mining tenement or right of occupancy continued in force by section 5 of
the Mining Act 1978 ;
payment does not include payment of an exploration
amount.
(2) An instrument
evidencing or effecting a farm-in agreement is —
(a) to
the extent that —
(i)
the instrument evidences or effects a farm-in agreement;
and
(ii)
no payment has been made or is payable in respect of the
right to acquire the interest, or the acquisition of the interest, specified
in the farm-in agreement,
chargeable with duty
at the rate set out under item 8 of the Second Schedule; and
(b) to
the extent that —
(i)
the instrument provides for the acquisition of an
interest in a mining tenement otherwise than pursuant to a farm-in agreement;
or
(ii)
payment has been made or is payable in respect of the
right to acquire the interest, or the acquisition of the interest, specified
in the farm-in agreement,
chargeable with duty
at the rate set out in item 4 or 19 of the Second Schedule, as the case
requires.
(3) If the
Commissioner is satisfied that —
(a) a
conveyance or transfer evidences or effects the acquisition of an interest in
a mining tenement pursuant to a farm-in agreement;
(b) the
amount specified in the farm-in agreement to be expended on exploration or
development of the mining tenement has been expended accordingly; and
(c) any
duty chargeable under subsection (2) in respect of the instrument has
been paid,
then —
(d) to
the extent that —
(i)
the conveyance or transfer evidences or effects the
acquisition of the interest; and
(ii)
no payment has been made or is payable in respect of the
acquisition,
the conveyance or
transfer is chargeable with duty under item 6 of the Second Schedule; and
(e) to
the extent that —
(i)
the conveyance or transfer provides for the acquisition
of an interest in a mining tenement otherwise than pursuant to the farm-in
agreement; or
(ii)
payment has been made or is payable in respect of the
acquisition of the interest specified in the farm-in agreement and duty in
respect of that acquisition was not paid under subsection (2)(b),
the conveyance or
transfer is chargeable with duty under item 4 or 19 of the Second
Schedule, as the case requires.
[Section 73G inserted by No. 66 of 2003
s. 34.]