By Justin Byrne, Special Counsel
Exposure draft legislation released this week will allow
geothermal explorers to access immediate tax write offs and
deductions for exploration expenses in certain circumstances.
The new rules will apply to assets first used after 1 July 2012,
and will give geothermal exploration entities the same ability to
claim immediate tax deductions and depreciation on certain assets
as miners and other exploration companies.
The introduction of the draft legislation follows the
Government's announcement in March 2011 that it would adopt the
Policy Transition Group's recommendations in relation to
Australia's new resource taxation arrangements.
Here, special counsel Justin Byrne outlines the key changes
introduced by the draft legislation and gives examples of the new
rules in practice.
