Taxes Consolidation Act 1997 section 673

Allowance in respect of development expenditure and exploration expenditure

Section 673 allows a person working a qualifying mine to claim an immediate mine development allowance in respect of qualifying development or exploration expenditure, including abortive exploration expenditure, incurred on or after 6 April 1974.

• Exploration and development expenditure incurred by a mine operator qualifies for a deemed mine development allowance under section 670, whether or not a mineral deposit is actually found.
• The allowance equals the full exploration expenditure plus development expenditure less the estimated residual value of the development assets at the end of the mine's life.
• Abortive exploration expenditure incurred before 1 April 1990 does not qualify if it was also incurred more than 10 years before the mining trade commenced.
• No allowance is available for expenditure incurred before 6 April 1974, even where it is deemed by other provisions to have been incurred after that date.