Commonwealth of Australia Consolidated Acts Commonwealth of Australia Consolidated Acts(1) The decline in value of a * depreciating asset you * hold is the asset's * cost if:
(a) you first use the asset for * exploration or prospecting for * minerals, or quarry materials, obtainable by * mining operations; and
(b) when you first use the asset, you do not use it for:
(i) development drilling for * petroleum; or
(ii) operations in the course of working a mining property, quarrying property or petroleum field; and
(c) you satisfy one or more of these subparagraphs at the asset's * start time:
(i) you carry on * mining operations;
(ii) it would be reasonable to conclude you proposed to carry on such operations;
(iii) you carry on a * business of, or a business that included, exploration or prospecting for minerals or quarry materials obtainable by such operations, and expenditure on the asset was necessarily incurred in carrying on that business.
Depreciating assets used for certain purposes
(2) The decline in value of a * depreciating asset you start to * hold in an income year is the asset's * cost if:
(a) that cost does not exceed $300; and
(b) you use the asset predominantly for the * purpose of producing assessable income that is not income from carrying on a * business; and
(c) the asset is not one that is part of a set of assets that you started to hold in that income year where the total cost of the set of assets exceeds $300; and
(d) the total cost of the asset and any other identical, or substantially identical, asset that you start to hold in that income year does not exceed $300.