20‑5 What are taxable resources20‑5 What are taxable resources

#### 20‑5 What are taxable resources (1) A taxable resource is a quantity of any of the following: (a) iron ore; (b) coal; (c) anything produced from a process that results in iron ore or coal being consumed or destroyed without extraction; (d) coal seam gas extracted as a necessary incident of mining coal. > Note: Example: Gas extracted on an ongoing basis from a coal mine, or a proposed coal mine (if it is not extracted as part of a separate commercial operation) in order to comply with engineering requirements, mine safety laws or environmental conditions would be a taxable resource because its extraction is a necessary incident of mining the coal. > Note: Gas extracted before coal mining begins as part of an independent commercial operation would not be a taxable resource because its extraction would not be a necessary incident of coal mining. Instead, that gas would be subject to taxation under the Petroleum Resource Rent Tax Assessment Act 1987. (2) In deciding whether something is a taxable resource, disregard: (a) the use to which it is or will be put; and (b) what is or will be produced from it after extraction. (3) A quantity of a thing may be a taxable resource even if its extent is not known (for example, before it is extracted).