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DIRECT TAXES -
Taxation of Resource Projects
(click
on heading below then click again)
Income
Tax
Additional
Profits Tax
 Allowable
Capital Expenditure
Allowablel
Exploration Expenditure
Additional
Exploration
Deductions
Accelerated
Deductions
Operating
Expenses
Interest
Deductions
Infrastructure
Credit
Mining
Levy
Allowable
Capital Expenditure
Expenditure
on long life assets, with a normal useful life of 10 years or
more, is depreciated on a straight line basis over 10 years. For
other capital expenditure, residual balance is divided by the
lesser of four or the remaining life of the project.
Allowable
Exploration Expenditure
Residual
expenditure is divided by the lesser of four or the remaining
life of the project. Allowable exploration expenditure may be
carried forward for a period of 20 years (previously, before Jan
2001, the limit was 11 years).
Additional
Exploration Deductions
Companies
involved in exploration licences may elect to 'pool' exploration
expenditure which they incur. They are then entitled to claim
annually 25% of the residual value of the exploration pool, in
addition to normal allowable exploration expenditure deductions.
The deduction may not create a tax loss, and may not reduce tax
payable by the taxpayer on combined resource operations by more
than 10%.
Accelerated
Deductions
It
should be noted that from Jan 2001 accelerated deductions are no
longer available.
 
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