pursuant to the terms of any of the following *production sharing contracts:

Production Sharing Contract JPDA 03-12;

Production Sharing Contract JPDA 03-13;

Production Sharing Contract JPDA 06-105;

Production Sharing Contract JPDA 11-106; or

pursuant to the terms of a production sharing contract that:

comes into force after, or when, that treaty entered into force; and

has the effect of replacing, and relates to the same area as, a production sharing contract mentioned in paragraph (a); or

in a part of the *Petroleum Exploration Permit WA-523-P permit area that, as a result of that treaty entering into force, ceased to be within the continental shelf of Australia.

you use a *depreciating asset, or you have it *installed ready for use, for a purpose of undertaking *transitioned petroleum activities; and

before the *Timor Sea Maritime Boundaries Treaty entered into force, you or another entity used the asset, or you or another entity had it installed ready for use, for a purpose of undertaking transitioned petroleum activities;

you can deduct an amount for a decline in value of the asset; and

apart from subsection (1), you would not be able to deduct an amount, or would only be able to deduct a lesser amount, for that decline in value; and

the *transitioned petroleum activities are wholly or partly undertaken, or to be undertaken, in relation to the *JPDA;

you can deduct an amount for a decline in value of the asset; and

apart from subsection (1), you would not be able to deduct an amount, or would only be able to deduct a lesser amount, for that decline in value;

before the *Timor Sea Maritime Boundaries Treaty entered into force, you *held a *depreciating asset that you used, or had *installed ready for use, for a purpose of undertaking *transitioned petroleum activities; and

you stopped holding the asset when that treaty entered into force, because the asset ceased to exist at that time; and

the cessation occurred in connection with the entry into force of that treaty;

(a) before the *Timor Sea Maritime Boundaries Treaty entered into force, you or another entity used the asset, or you or another entity had it *installed ready for use, for a purpose of undertaking *transitioned petroleum activities; and

on or after the day on which that treaty entered into force, a *balancing adjustment event occurs for the asset.

you *held when the *Timor Sea Maritime Boundaries Treaty entered into force; and

before that treaty entered into force, you used, or had *installed ready for use, for a purpose of undertaking *transitioned petroleum activities.

the pooled assets are taken to be a single *depreciating asset that you *hold; and

the single asset is taken to be used, or *installed ready for use, for the same purpose as the purpose for which the pooled assets were used, or installed ready for use, when the *Timor Sea Maritime Boundaries Treaty entered into force; and

the *cost of the single asset is taken to be an amount equal to the sum of the *adjustable values of all of the pooled assets when that treaty entered into force; and

the decline in value of the single asset is taken to be:

for the initial income year—40% of its cost; and

for the next income year—40% of its cost; and

for the income year after that next income year—20% of its cost; and

a *balancing adjustment event cannot occur for the single asset; and

a *CGT event cannot occur for the single asset; and

amounts are not deductible, by you or any other entity, for declines in value of any of the assets allocated to the pool for:

the part of the initial income year occurring on or after the entry into force of that treaty; or

any subsequent income year.

acquiring land or an interest in land or a right, power or privilege to do with land;

a bond or security, however described, for performing *mining site rehabilitation;

*housing and welfare.

a *project amount was allocated to a project pool before the *Timor Sea Maritime Boundaries Treaty entered into force; and

the project amount was expenditure for a purpose of undertaking *transitioned petroleum activities in relation to the *JPDA;

a *project amount was allocated to a project pool before the *Timor Sea Maritime Boundaries Treaty entered into force; and

the project amount was expenditure for a purpose of undertaking *transitioned petroleum activities otherwise than in relation to the *JPDA;

calculate the amount of the deduction as if none of those project amounts had been allocated to the project pool;

add to that amount the following:

for the initial income year—40% of the sum of those project amounts;

for the next income year—40% of that sum;

for the income year after that next income year—20% of that sum.

all or part of your entitlement to deductions under Division 40 in relation to the declines in value of the single asset mentioned in subsection 417-35(4) (including future declines in value but not including declines in value that have already been deducted under that Division);

all or part of so much of your entitlement to deductions under section 40-830 or 40-832 as arises because of the operation of section 417-45.

must be in the *approved form; and

must be made no later than the day you lodge your *income tax return for the first income year for which all or part of your entitlement is to be transferred.

the other entity can make deductions arising from that entitlement or part; and

at the time of the choice, a *franking credit arises in the *franking account of the other entity; and

you can no longer make deductions arising from that entitlement or part.

before the *Timor Sea Maritime Boundaries Treaty entered into force, you owned an intangible *CGT asset connected with undertaking *transitioned petroleum activities; and

your ownership of the asset ended when that treaty entered into force; and

the ending of your ownership occurred in connection with the entry into force of that treaty;

you choose to transfer to another entity:

under section 417-50, an entitlement to deductions; or

under Subdivision 417-D, an amount of a *tax loss for an income year; and

you receive any consideration from the other entity for the entitlement to deductions or for the amount of the tax loss;

so much of the consideration as is given for the entitlement to deductions or for the amount of the tax loss is not included in your assessable income or your exempt income; and

a *capital gain does not accrue to you because of the receipt of the consideration.

you choose to transfer to another entity:

under section 417-50, an entitlement to deductions; or

under Subdivision 417-D, an amount of a *tax loss for an income year; and

the other entity gives you any consideration for the entitlement to deductions or for the amount of the tax loss;

the other entity cannot deduct the amount or value of the consideration; and

the other entity does not incur a *capital loss because of the giving of the consideration.

an entity chooses to transfer:

under section 417-50, an entitlement to deductions; or

under Subdivision 417-D, an amount of a *tax loss for an income year; and

another entity *holds, either directly or indirectly, a *membership interest in that entity:

you have a *tax loss for the income year in which the *Timor Sea Maritime Boundaries Treaty entered into force, or for an earlier income year; and

some or all of the tax loss is attributable to you undertaking *transitioned petroleum activities before that treaty entered into force;

(a) you have a *tax loss for an income year (the loss year); and

some or all of the tax loss is attributable to you undertaking *transitioned petroleum activities; and

paragraph (1)(b) does not apply to those activities;

(d) choose to transfer all or any part of the amount of the tax loss that is so attributable to a *corporate tax entity (the transferee) that either is an Australian resident or has a *permanent establishment in Australia; or

choose to apply all or any part of the amount of the tax loss that is so attributable as a deduction from your assessable income for any of the 4 income years preceding the income year for which you make the choice.

the total amount chosen to be transferred or applied under subsection (2) for an income year must not exceed 10% of the total amount:

on which your liability for *foreign income tax under the law of Timor-Leste is required to be worked out; and

that relates to undertaking those *transitioned petroleum activities during that year; and

you cannot make a choice under paragraph (2)(e) for an income year if you do not have a *franking surplus at the end of that year; and

the total amount chosen to be applied under paragraph (2)(e) for an income year must not exceed the sum of:

the amount of your franking surplus at the end of that year; and

the product of the amount of that surplus and the *corporate tax gross-up rate.

any part of the *tax loss attributable to deductions for assets allocated to a project pool under section 417-35; and

any part of the *tax loss attributable to deductions for assets allocated to a project pool under Subdivision 40-I, to the extent that the deductions relate to *project amounts to which subsection 417-45(1) or (2) applies.

must be in the *approved form; and

must be made no later than:

the day you lodge your *income tax return for the income year for which the choice is made; or

a later time allowed by the Commissioner; and

must be given to the Commissioner within 30 days after you make the choice.

the amount is taken to be a tax loss incurred by the transferee in the loss year; and

the transferee can deduct the amount in accordance with section 36-17 (which is about how to deduct a tax loss); and

at the time of the choice, a *franking credit arises in the *franking account of the transferee; and

you can no longer *utilise the amount, and you are taken not to have incurred the tax loss to the extent of the amount.

you can deduct the amount from your assessable income for the earlier income year; and

you can no longer *utilise the amount, and you are taken not to have incurred the tax loss to the extent of the amount.

paragraphs 417-90(1)(a) and (b); or

paragraphs 417-90(2)(a) and (b).

you are entitled to a *tax offset under Subdivision 770-A for an income year for *foreign income tax; and

the foreign income tax is payable on income you earned as an employee in relation to *transitioned petroleum activities undertaken, or to be undertaken, in relation to the *JPDA;

the petroleum was produced by undertaking *transitioned petroleum activities in the Bayu-Undan Gas Field (within the meaning of that treaty); and

the price for the acquisition is the price that is used by, or agreed with, a *foreign government agency of Timor-Leste in relation to the acquisition for the purposes of administering the law of Timor-Leste relating to taxation.

the supply occurred pursuant to the terms of an *arrangement, connected with undertaking *transitioned petroleum activities, that:

was in force just before the *Timor Sea Maritime Boundaries Treaty was made; or

is substantially similar to an arrangement that was in force just before that time; and

the price for the supply is the price that is used by, or agreed with, a *foreign government agency of Timor-Leste in relation to the supply for the purposes of administering the law of Timor-Leste relating to taxation.

a *depreciating asset that the joining entity *holds as a result of a *balancing adjustment event mentioned in paragraph 417-30(2)(b).