kerry o"brien questions brand rudd , page-142

Free will or some other person who may have read the Henry report.

Quick question for you cause I think you have said before you are an accountant.

http://www.taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/Papers/Final_Report_Part_2/chapter_c1-3.htm

just a little piece from Mr henry I was hoping you could interpret for me.


"A full loss offset can be achieved by allowing the transfer of losses to other commonly owned resource projects or by allowing losses to be carried forward (uplifted at the ACC rate) so that they can be utilised against future income. If losses cannot be utilised against future income in this way, the tax value of residual losses (the ACC base) would be refunded when a project is closed. The ability to transfer expenditure reduces the stress on the full loss offset."

Question: Does the above mean if I am a small explorer that has say spent $100 mill on exploration and development. Then I decide the project is subeconomic. I have no income or other projects I could claim this expense against. Does the gov then allow me to declare this and get say $40mill???? Obviously this does not apply now but thats how I interpret it......