17 Jul 14 Limiting deductibility for exploration expenditure - administrative treatment
The ATO advises that on 6 November 2013, the Treasurer announced in a joint media release that the government will better target the immediate deduction for exploration to genuine exploration activities as previously announced by the former government. This measure, enacted by Tax and Superannuation Laws Amendment (2014 Measures No 3) Act 2014, received Royal Assent on 30 June 2014. However, it applies to transactions to acquire mining rights or mining information entered into after 7.30pm (AEST) 14 May 2013.
The ATO has now published the administrative treatment it will apply as a result of the backdating of the changes.