09 May 06 Treatment of mining, petroleum and quarrying rightsThe Government will amend the way mining, petroleum and quarrying rights (mining rights) are dealt with under the uniform capital allowance (UCA) regime to ensure such rights are treated consistently with other depreciating assets. This measure will apply to mining rights acquired since the commencement of the UCA regime on 1 July 2001.
The current law treats mining rights differently to other depreciating assets, which was not the intended outcome when mining rights were brought into the UCA regime. Under the current law, the effective life of a mining right is taken to be the whole life of the right without regard to prior use. In addition, holders of rights are required to assess the life of the right annually.
This measure will allow a person who acquires a mining right to take account of the prior use of the mining right by former owners when calculating the remaining effective life of the right. Also, holders of mining rights will not be required to make an annual assessment of the life of the right.
For a copy of the Assistant Treasurer's press release No 21, 9 May 2006, go here