PM Transcripts

PRESS STATEMENT NO. 558
16 September 1975
AUSTRALIAN INCOME TAX DEDUCTIONS FOR MINERAL EXPLORATION
EXPENDITURE IN PAPUA NEW GUINEA
The Prime Minister, Mr Whitlam, announced today
that transitional provisions in the Income Tax Assessment
Act 1975 relating to the allowance of deduction, for
Australian income tax purposes, of mineral exploration
expenditure incurred by Australian companies in Papua New
Guinea would be extended.
Amendments to the Australian income tax law
effected by the Income Tax Assessment Act 1975 provide that,
subject to transitional provisions, deductions will not be
allowed in Australia for mineral exploration expenditure
incurred by Australian companies in Papua New Guinea after
Papua New Guinea attains independence. When the amending
legislation was being considered by the Australian
P arliament the Australian Government indicated that it
0 would be giving sympathetic consideration to a request
for extension of these transitional provisions that the Papua
New Guinea Government has foreshadowed it would make.
Extended transitional provisions now agreed
would apply to Australian companies which, at 16 September
1975, held prospecting authorities issued by the Papua
New Guinea Government. The extended provisions would also
apply to Australian companies which at that date had entered
into farm-in arrangements with holiders of such authorities
or had made arrangements with the Papua New Guinea Government
giving them rights in respect of such authorities.
These companies will be allowed deductions in
Australia for mineral exploration expenditure incurred by
them up to 30 June 1978 in the areas covered by those authorities,
on the same basis as applied to such expenditure incurred in
Australia. Legislation to give effect to this extension
would be introduced in the Australian Parliament as soon
as practicable. There will be no cost to the Australian
Government revenue in 1975-76 because of this extension.
CANBERRA, A. C. T.