18What happens if the notional deductible expenditure exceeds the notional assessable receipts

#### 18 What happens if the notional deductible expenditure exceeds the notional assessable receipts (1) If, in relation to the person, the exploration permit or retention lease and the assessable year: (a) the notional deductible expenditure exceeds the notional assessable receipts; and (b) the excess equals or exceeds the notional exploration expenditure; all the expenditure included in the reduced notional exploration expenditure is transferable by the person in relation to the assessable year. (2) If, in relation to the person, the exploration permit or retention lease and the assessable year: (a) the notional deductible expenditure exceeds the notional assessable receipts; and (b) the excess (in this subclause called the notional loss) is less than the notional exploration expenditure; and (c) the oldest amount of expenditure included in the reduced notional exploration expenditure equals or exceeds the notional loss; so much of that oldest amount as equals the notional loss is transferable by the person in relation to the assessable year. (3) If, in relation to the person, the exploration permit or retention lease and the assessable year: (a) the notional deductible expenditure exceeds the notional assessable receipts; and (b) the excess (in this subclause called the notional loss) is less than the notional exploration expenditure; and (c) the notional loss exceeds the oldest amount of expenditure included in the reduced notional exploration expenditure; the following provisions have effect: (d) add amounts in accordance with the following rules: (i) start with the oldest amount of expenditure included in the reduced notional exploration expenditure and add to that, in order starting with the next oldest amount, each of the other amounts included in the reduced notional exploration expenditure; (ii) if adding an amount of expenditure would make the total exceed the notional loss, add only so much of the amount as makes the total equal the notional loss and do not add any later incurred amount of expenditure; (e) the expenditure added in accordance with subparagraphs (d)(i) and (ii) is transferable by the person in relation to the assessable year.