A New Tax System (Goods and Services Tax) Attribution Rules for Deferred Transfer Farm-out Arrangements Determination 2022 (Cth)

Legislative Instrument

A New Tax System (Goods and Services Tax) Attribution Rules for Deferred Transfer Farm-out Arrangements Determination 2022

I, Ben Kelly, Deputy Commissioner of Taxation, make this determination under subsection 29-25(1) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act).

Ben Kelly Deputy Commissioner of Taxation Policy, Analysis and Legislation Law Design and Practice 14 September 2022

1 Name of instrument This legislative instrument is the A New Tax System (Goods and Services Tax) Attribution Rules for Deferred Transfer Farm-out Arrangements Determination 2022.

2 Commencement This determination commences on the day after it is registered on the Federal Register of Legislation.

3 Application (1) This determination applies where a farmor and a farmee have entered into a deferred transfer farm-out arrangement:

(a) to which the A New Tax System (Goods and Services Tax) (Particular Attribution Rules Where Supply or Acquisition Made Under a Contract Subject to Preconditions) Determination 2012 (F2012L00866) applied; or

(b) on or after the date of commencement of this determination.

4 Attribution rules for a deferred farm-out arrangement (1) The attribution rules for a farmor that has entered into a deferred transfer farm-out arrangement are as follows:

(a) If the farmor accounts for GST on a basis other than cash, GST payable on a taxable supply of an interest in the mining tenement is attributable to the tax period in which the farmee exercises the right to acquire the interest.

(b) If the farmor accounts for GST on a cash basis, GST payable on a taxable supply of an interest in the mining tenement is attributable to the tax period in which the interest is transferred to the extent that the consideration received for that supply is the exploration benefit.