58MSpecial translation rules—events that happened before the withdrawal of an election took effect

#### 58M Special translation rules—events that happened before the withdrawal of an election took effect Certain expenditure incurred on the day when section 58B election takes effect (1) If: (a) a person withdraws an election under section 58B with effect from immediately after the end of a financial year; and (b) the person does not make a fresh election under section 58B with effect from the start of the next financial year; and (c) any of the following subparagraphs applies: (i) under subsection 33(3), an amount is taken to be class 1 augmented bond rate general expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (ii) under subsection 34(3), an amount is taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (iii) under subsection 34A(4), an amount is taken to be class 2 uplifted general expenditure incurred by the person on the first day of the next financial year; (iv) under subsection 35C(5), an amount is taken to be resource tax expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (vi) under subsections 35E(1) and (1B), or under subsection 35E(3), an amount is taken to be starting base expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (vii) the person has a starting base amount in relation to an interest in a petroleum project; and (d) section 10 requires that the amount be translated into Australian currency; the amount is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year. Class 2 uplifted exploration expenditure, class 2 GDP factor expenditure and transferable exploration expenditure (2) For the purpose of working out: (a) the class 2 uplifted exploration expenditure; or (b) the class 2 GDP factor expenditure; or (c) the transferable exploration expenditure; that a person is taken to have incurred in a financial year in relation to a petroleum project, if: (d) a person withdraws an election under section 58B with effect from immediately after the end of an earlier financial year; and (e) the person has not made an election under section 58B with effect from the start of an intervening financial year; and (f) section 10 requires that an amount of expenditure be translated into Australian currency; and (g) the expenditure was actually incurred before the withdrawal of the election took effect; the expenditure is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year after that earlier financial year.