The Government will clarify the treatment of realignments of interests between joint venture partners in the minerals and petroleum industry.
The measure will only apply to changes of ownership within a common project (which includes combining neighbouring fields into one project and sharing expenditure in areas such as planning, research and construction of infrastructure). This reform is intended to address uncertainty for realignments, which are potentially affected by the decision to limit the immediate deduction for mining rights first used for exploration.
Note that these realignments do not raise the integrity concerns regarding intangible assets connected rights to mine to which the original measure was directed – see above.
Date of effect – The measure will apply from 7:30pm (AEST) 14 May 2013.
Source: Budget Paper No 2 [p 13]
[WTB 20, 13/5/14]