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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS

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History Pt 3-1 inserted by No 46 of 1998.

Division 116 - Capital proceeds

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History Div 116 inserted by No 46 of 1998.

Special rules

SECTION 116-115  Farm-in farm-out arrangements

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116-115(1)

If:

(a) *CGT event A1 is the *disposal of part of your interest in a *mining, quarrying or prospecting right; and

(b) the part is disposed of under a *farm-in farm-out arrangement; and

(c) you have received an *exploration benefit in respect of the event happening;

in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.

116-115(2)

If:

(a) *CGT event C2 arises as a result of an *exploration benefit being provided to you; and

(b) the exploration benefit is provided under a *farm-in farm-out arrangement;

in working out the *capital proceeds for the CGT event, treat as zero the *market value of the exploration benefit.

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History S 116-115 inserted by No 130 of 2015, s 3 and Sch 1 item 16, applicable in relation to farm-in farm-out arrangements entered into after 7.30 pm, by legal time in the Australian Capital Territory, on 14 May 2013.