{"id":"F2017L01483","name":"Income Tax – Exploration Development Incentive Modulation Factor – Declaration Instrument 2017","slug":"income-tax-exploration-development-incentive-modulation-factor-declaration-instrument-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":144264,"registerId":"commonwealth-F2017L01483-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Income Tax – Exploration Development Incentive Modulation Factor – Declaration Instrument 2017","content":"Legislative Instrument\n\nIncome Tax – Exploration Development Incentive Modulation Factor – Declaration Instrument 2017\n\nI, Jeremy Hirschhorn, 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 Jeremy Hirschhorn\n\nDeputy Commissioner of Taxation\n\nDated: 26 October 2017\n\n1.  Name of Determination\n\nThis instrument is the Income Tax – Exploration Development Incentive Modulation Factor – Declaration Instrument 2017.\n\n2. Commencement\n\nThis instrument commences on the day after its registration.\n\n3. Application\n\nThe modulation factor for the purposes of working out an entity’s maximum exploration credit amount for the 2017\\-18 income year is 1.\n\n4. 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 2017\\-18 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\n5. Definitions\n\nTerms used in this instrument have the same meaning as defined in the Income Tax Assessment Act 1997.","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument performs exactly the narrow administrative function it was designed for: declaring the annual modulation factor for the Exploration Development Incentive. It has not expanded beyond its original purpose of setting this specific numerical parameter."},"complexity_factors":["Very short instrument (5 sections, approximately 200 words total)","Only one substantive provision (section 3) which sets a single numerical value","No defined terms in the instrument itself - relies entirely on external definitions from the Income Tax Assessment Act 1997","Minimal conditional logic - essentially applies to all eligible entities for the specified income year","No cross-references within the instrument itself, though it references external legislation (ITAA 1997)","Straightforward administrative instrument with single declaratory function"],"plain_english_summary":"This instrument sets the Exploration Development Incentive’s modulation factor to 1 for the 2017–18 year, determining how much exploration tax credit capacity companies can generate. It affects mining/exploration companies that issue credits and the investors who receive them, preserving the incentive’s full value for 2017–18 (no reduction or uplift)."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument does not change who is covered by the Exploration Development Incentive or alter the calculation method in the ITAA 1997. It only declares the modulation factor (a numerical parameter) for 2017–18, applying to entities that may create exploration credits and calculate maximum credit amounts under subsections 418‑85(2)–(5). Definitions remain those in the Income Tax Assessment Act 1997."},"complexity_factors":["Single numeric setting (modulation factor = 1) — narrow, discrete change.","Relies on external provisions for substantive effect (Subdivision 418‑D; subsections 418‑85(2)–(5)) so understanding requires consultation of the ITAA 1997.","Made by administrative delegation (s. 418‑90(1)) — procedural formality rather than legislative amendment.","Temporal scope confined to a single income year (2017–18).","Low discretionary content and no new compliance mechanisms or definitions within the instrument itself."],"plain_english_summary":"This instrument sets the Exploration Development Incentive modulation factor to 1 for the 2017–18 income year. That factor is the multiplier used when calculating an entity’s maximum exploration credit under Subdivision 418‑D and the calculation method in subsections 418‑85(2)–(5) of the Income Tax Assessment Act 1997.\n\nIt applies to entities that may create exploration credits. The declaration was made by the Deputy Commissioner of Taxation as a delegate (subsection 418‑90(1)) and mechanically fixes the multiplier that determines the size of eligible exploration credits."}},"importantCases":[],"_links":{"self":"/api/acts/income-tax-exploration-development-incentive-modulation-factor-declaration-instrument-2017","history":"/api/acts/income-tax-exploration-development-incentive-modulation-factor-declaration-instrument-2017/history","analysis":"/api/acts/income-tax-exploration-development-incentive-modulation-factor-declaration-instrument-2017/analysis","conflicts":"/api/acts/income-tax-exploration-development-incentive-modulation-factor-declaration-instrument-2017/conflicts","importantCases":"/api/acts/income-tax-exploration-development-incentive-modulation-factor-declaration-instrument-2017/important-cases","documents":"/api/acts/income-tax-exploration-development-incentive-modulation-factor-declaration-instrument-2017/documents"}}