{"id":"F2016L01854","name":"Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 2) 2016","slug":"f2016l01854","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":328820,"registerId":"commonwealth-F2016L01854-current","compilationNumber":null,"startDate":"2026-04-08","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 2) 2016","content":"Legislative Instrument\n\nIncome Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 2) 2016\n\nI, Bruce Collins, Acting Deputy Commissioner of Taxation, make this instrument as a delegate of the Commissioner of Taxation under subsection 418‑90(1) of the Income Tax Assessment Act 1997.\n\nSigned by Bruce Collins\n\nActing Deputy Commissioner of Taxation\n\nDated: 29 November 2016\n\n1.  Name of Determination\n\nThis instrument is the Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 2) 2016.\n\n2. Commencement\n\nThis instrument commences on the day after its registration.\n\n3. Repealing of existing instrument\n\nThis replacement instrument rectifies an incorrect date reference in the previous Legislative Instrument Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2016, R20161124L007 registered on 25 November 2016.\n\n4. Application\n\nThe modulation factor for the purposes of working out an entity’s maximum exploration credit amount for the 2016\\-17 income year is 1.00.\n\n5. Determination (Who is covered by this Determination)\n\nThis instrument applies to an entity that may create exploration credits under Subdivision 418-D of the Income Tax Assessment Act 1997 for the 2016\\-17 income year and calculates its maximum exploration credit amount for that income year in accordance with the method statement in subsection 418-85(2) to subsection 418-85(5) of the Income Tax Assessment Act 1997.\n\n6. Definitions\n\nTerms used in this instrument have the same meaning as defined in the Income Tax Assessment Act 1997.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument performs exactly its intended function: setting a single numerical parameter for one financial year. It has not expanded beyond its original technical purpose."},"complexity_factors":["Very short instrument (6 sections, ~250 words)","Only one substantive provision (section 4 setting the factor at 1.00)","Minimal defined terms (relies on external definitions in the Income Tax Assessment Act 1997)","Simple linear structure with no conditional logic or exceptions","Single cross-reference to the parent Act for context"],"plain_english_summary":"The ATO sets the Exploration Development Incentive modulation factor at 1.00 for 2016–17, which determines the maximum exploration credits mining and exploration companies can create and pass to investors. A 1.00 factor means companies may convert their full eligible exploration expenditure into credits (no reduction). This instrument simply corrects a prior November 2016 reissue that contained a date error."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument does not change the substantive scope of the exploration credit regime. It replaces a previous instrument solely to correct an incorrect date reference (clause 3) and confirms the modulation factor for 2016–17 as 1.00 (clause 4). The categories of entities covered and the statutory calculation method remain those in Subdivision 418‑D and subsections 418‑85(2)–(5) of the Income Tax Assessment Act 1997 (clause 5)."},"complexity_factors":["Narrow, technical effect: fixes a single numerical parameter (modulation factor = 1.00) (clause 4).","Specific application: applies only to entities that may create exploration credits under Subdivision 418‑D and that use subsections 418‑85(2)–(5) to calculate maximum credit (clause 5).","Corrective/replacement instrument: replaces a prior instrument to rectify an incorrect date reference (clause 3), creating minimal substantive change.","Delegated instrument form: made by Acting Deputy Commissioner under subsection 418‑90(1), reflecting administrative rather than legislative policy change (preamble).","Reliance on external definitions and calculation method: terms and procedural rules are drawn from the Income Tax Assessment Act 1997 (clause 6 and clause 5 referencing subsections 418‑85(2)–(5)), requiring users to consult the Act for full effect."],"plain_english_summary":"This instrument sets the modulation factor at 1.00 to be used when calculating an entity’s maximum exploration credit for the 2016–17 income year. It applies to entities that may create exploration credits under the Income Tax Assessment Act 1997 and requires them to use this fixed factor in the statutory calculation. The instrument is a technical, corrective legislative instrument made by a delegate of the Commissioner of Taxation."}},"importantCases":[],"_links":{"self":"/api/acts/f2016l01854","history":"/api/acts/f2016l01854/history","analysis":"/api/acts/f2016l01854/analysis","conflicts":"/api/acts/f2016l01854/conflicts","importantCases":"/api/acts/f2016l01854/important-cases","documents":"/api/acts/f2016l01854/documents"}}