Notice of Withdrawal
Draft Taxation Ruling TR 2006/D2 identified and provided guidance to taxpayers on matters relevant to ascertaining the effective life of a mining, quarrying or prospecting right mentioned in item 11 of the table in subsection 40-95(7) of the Income Tax Assessment Act 1997 (ITAA 1997). The table expressed that effective life to be 'the life of the mine or proposed mine or, if there is more than one, the life of the mine that has the longest estimated life'.
In the 2006 Budget the Government announced an intention to amend the way mining, petroleum and quarrying rights are dealt with under Division 40 of the ITAA 1997 with effect from 1 July 2001 - the date such rights were brought into the uniform capital allowances regime as depreciating assets. Specifically: the law will include these rights under the general provisions of the uniform capital allowances regime which will provide holders of these rights with the option of self-assessment; allowing them to write-off their right over the remaining life of the mine, petroleum field or quarry. Also, they will not be required to make an annual estimate of their asset's economic life. [1]
It is therefore anticipated that the item on which TR 2006/D2 provides guidance will be repealed with effect from 1 July 2001. Consequently, there is no further need for a public ruling to provide guidance on that item.