Commonwealth legislation

Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

1/10 complexity

This instrument sets the modulation factor at 1 for the 2015-16 financial year.

What this does: Under the Exploration Development Incentive, small mineral exploration companies searching for new mineral deposits can convert their exploration spending into tax credits for investors. The Tax Commissioner sets a yearly "modulation factor" that determines how much of their spending can be turned into these credits.

Who it affects: Small mineral exploration companies calculating their maximum exploration credits for the 2015-16 tax year.

Why it matters: A factor of 1 means companies can create credits based on their full eligible exploration spending (subject to other limits). The Commissioner can adjust this factor up or down in future years depending on demand for the program.

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Current sections

Direct links to the current provisions in Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015.

Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015

Legislative Instrument

Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015

I, 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.

Signed by Jeremy Hirschhorn

Deputy Commissioner of Taxation

Dated: 12 November 2015

Name of Determination

This instrument is the Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015.

Commencement

This instrument commences on the day after its registration.

Application

The modulation factor for the purposes of working out an entity’s maximum exploration credit amount for the 2015-16 income year is 1.

Determination (Who is covered by this Determination)

This instrument applies to an entity that may create exploration credits under Subdivision 418-D of the Income Tax Assessment Act 1997 for the 2015-16 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.

Definitions

Terms used in this instrument have the same meaning as defined in the Income Tax Assessment Act 1997.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015

Legislative Instrument

Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015

I, 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.

Signed by Jeremy Hirschhorn

Deputy Commissioner of Taxation

Dated: 12 November 2015

Name of Determination

This instrument is the Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015.

Commencement

This instrument commences on the day after its registration.

Application

The modulation factor for the purposes of working out an entity’s maximum exploration credit amount for the 2015-16 income year is 1.

Determination (Who is covered by this Determination)

Definitions

Terms used in this instrument have the same meaning as defined in the Income Tax Assessment Act 1997.