Source: https://www.legislation.gov.au/Details/C2019A00043
Timestamp: 2019-10-14 15:56:47
Document Index: 430439728

Matched Legal Cases: ['art 1', 'art 2', 'art 3', 'art 1', 'art 2', 'art 3', 'art 1', 'art 2', 'art 2', 'art 2', 'art 3']

Details: C2019A00043
- C2019A00043
Act No. 43 of 2019 as made
An Act to amend the law relating to petroleum resource rent tax, and for related purposes
Originating Bill: Treasury Laws Amendment (2019 Petroleum Resource Rent Tax Reforms No. 1) Bill 2019
C2019A00043
Schedule 1—Reform of the petroleum resource rent tax 3
Part 1—Uplifts for general expenditure for new projects 3
Petroleum Resource Rent Tax Assessment Act 1987 3
Part 2—Standard uplift expenditure 5
Part 3—Other amendments 16
Schedule 2—Removing onshore projects from the petroleum resource rent tax 18
Part 1—Amendment of the Petroleum Resource Rent Tax Assessment Act 1987 18
Part 2—Amendments of other Acts 28
Excise Tariff Act 1921 28
Part 3—Application, transitional and savings provisions 29
Division 1—Application of amendments to deductible expenditure and assessable receipts 29
Division 2—General application of amendments 30
This Act is the Treasury Laws Amendment (2019 Petroleum Resource Rent Tax Reforms No. 1) Act 2019.
Schedule 1—Reform of the petroleum resource rent tax
Part 1—Uplifts for general expenditure for new projects
1 Subsection 258(7) (note)
After “paragraph 34A(1)(a)”, insert “and subsection 34A(5)”.
2 Subsection 34A(4) (formula)
3 Subsection 34A(4) (definition of Augmented bond rate)
(ii) the production licence in relation to the project is a post‑June 2019 licence; and
the uplift rate is the long‑term bond rate in relation to the assessable year plus 1; or
(ii) one or more post‑June 2019 licences are, or have been, in force in relation to the project, or a pre‑combination project in relation to the project; and
(iii) any person derived assessable petroleum receipts in relation to the project, or a pre‑combination project in relation to the project, at any time after the first such licence was granted; and
(c) if paragraphs (a) and (b) do not apply—the uplift rate is the long‑term bond rate in relation to the assessable year plus 1.05.
5 Subsection 34A(5)
post‑June 2019 licence: a production licence is a post‑June 2019 licence if the earlier of the following is on or after 1 July 2019:
(a) if a notice was given under subsection 258(7) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 in relation to the application for the licence—the date specified in the notice as the last date on which information was provided;
Part 2—Standard uplift expenditure
6 Paragraphs 32(c) and (e)
7 Section 34A (heading)
8 Subsection 34A(1)
Omit “class 2 augmented bond rate” (wherever occurring), substitute “class 2 uplifted”.
9 Subsection 34A(2)
10 Subsection 34A(3)
11 Paragraph 34A(4)(c)
12 Subsection 34A(4)
Omit “an amount of class 2 augmented bond rate”, substitute “an amount of class 2 uplifted”.
13 Subsection 34A(4) (definition of Available excess)
14 Paragraph 35(3)(c)
15 Section 35A (heading)
16 Subsection 35A(1)
17 Subsection 35A(1) (note)
18 Subsection 35A(2)
19 Subsection 35A(2) (note)
20 Paragraphs 35C(5)(c) and (e)
21 Paragraphs 35E(3)(c) and (e)
22 Section 36A (note)
Omit “before the GDP factor or the augmented bond rate is applied to the amount under Schedule 1”, substitute “before the amount is further increased under Schedule 1”.
23 Subsection 36B(1) (note)
24 Subparagraph 48(1)(a)(i)
25 Subparagraph 48(1)(a)(ia) (note)
26 Paragraph 48A(5)(b)
27 Paragraph 48A(5)(c) (note)
28 Subparagraph 58K(1)(b)(iii)
29 Subsection 58K(2) (heading)
30 Paragraph 58K(2)(a)
31 Subparagraph 58M(1)(c)(iii)
32 Subsection 58M(2) (heading)
33 Paragraph 58M(2)(a)
(a) definition of ABR expenditure year;
(b) definition of augmented bond rate.
35 Clause 1 of Schedule 1 (definition of GDP expenditure year)
Omit “ABR expenditure”, substitute “standard uplift expenditure”.
standard uplift expenditure year, in relation to a petroleum project, means the earlier of the following financial years and each financial year after that financial year:
(a) the financial year in which the relevant pre‑commencement day occurred;
(b) the financial year that starts on 1 July 2019.
37 Part 2 of Schedule 1 (heading)
38 Clause 5 of Schedule 1 (paragraph (a) of the definition of notional taxable profit)
39 Paragraph 6(1)(a) of Schedule 1
40 Paragraph 6(1)(b) of Schedule 1
41 Paragraph 7(a) of Schedule 1
42 Paragraph 7(b) of Schedule 1
43 Subclause 8(3) of Schedule 1
Omit “an ABR expenditure”, substitute “a standard uplift expenditure”.
44 Paragraphs 8(3)(a) and (b) of Schedule 1
(a) if the standard uplift expenditure year is the financial year immediately before the assessable year—multiply the incurred exploration expenditure amount in relation to the standard uplift expenditure year by:
(i) if the standard uplift expenditure year starts before 1 July 2019—the long‑term bond rate in relation to the standard uplift expenditure year plus 1.15; or
(ii) otherwise—the long‑term bond rate in relation to the standard uplift expenditure year plus 1.05;
(b) if the standard uplift expenditure year is an earlier financial year—work out, in relation to the standard uplift expenditure year and each later financial year ending before the assessable year, an amount in accordance with the formula:
exploration expenditure amount means:
(i) in making the calculation in relation to the standard uplift expenditure year—the incurred exploration expenditure amount in relation to the standard uplift expenditure year; or
(ii) in making the calculation in relation to one of the later financial years—the amount calculated under this paragraph in relation to the immediately preceding financial year for the purpose of working out the available exploration expenditure amount for the standard uplift expenditure year.
(i) if both the standard uplift expenditure year and the calculation year start before 1 July 2019—the long‑term bond rate in relation to the calculation year plus 1.15; or
(ii) if the standard uplift expenditure year starts before 1 July 2019 and the calculation year starts on or after 1 July 2019—the long‑term bond rate in relation to the calculation year plus 1.05; or
(iii) if the standard uplift expenditure year starts on or after 1 July 2019 and the calculation year is 10 or more years after the standard uplift expenditure year—the GDP factor for the calculation year; or
(iv) in any other case—the long‑term bond rate in relation to the calculation year plus 1.05;
45 Paragraphs 8(3)(c) and (d) of Schedule 1
46 Subclause 8(4) of Schedule 1
Omit “ABR expenditure years is less”, substitute “standard uplift expenditure years is less”.
47 Paragraphs 8(4)(a) and (b) of Schedule 1
48 Paragraphs 8(4)(b) and (c) of Schedule 1
49 Subclause 8(5) of Schedule 1
Omit “ABR expenditure years exceeds”, substitute “standard uplift expenditure years exceeds”.
50 Paragraphs 8(5)(a) and (b) of Schedule 1
51 Paragraph 8(5)(c) of Schedule 1
Omit “ABR expenditure years that is not expenditure to which that class 2 augmented bond rate”, substitute “standard uplift expenditure years that is not expenditure to which that class 2 uplifted”.
52 Paragraph 8(6)(a) of Schedule 1
53 Paragraph 8(6)(b) of Schedule 1
54 Subclause 8(6) of Schedule 1
Omit “the class 2 augmented bond rate”, substitute “the class 2 uplifted”.
55 Subclause 8(6) of Schedule 1
Omit “for that ABR expenditure year” (wherever occurring), substitute “for that standard uplift expenditure year”.
56 Paragraph 8(7)(a) of Schedule 1
57 Paragraph 8(7)(b) of Schedule 1
58 Subparagraph 8(7)(c)(i) of Schedule 1
Omit “ABR expenditure” (wherever occurring), substitute “standard uplift expenditure”.
59 Subparagraph 8(7)(c)(ii) of Schedule 1
60 Subparagraph 8(7)(c)(ii) of Schedule 1
Omit “later ABR expenditure”, substitute “later standard uplift expenditure”.
61 Paragraph 8(7)(d) of Schedule 1
62 Subparagraph 8(7)(d)(i) of Schedule 1
63 Subparagraph 8(7)(d)(ii) of Schedule 1
64 Subparagraph 8(7)(d)(ii) of Schedule 1
Omit “that ABR expenditure” (wherever occurring), substitute “that standard uplift expenditure”.
65 Clause 24 of Schedule 1 (heading)
66 Paragraph 24(a) of Schedule 1
67 Paragraph 24(c) of Schedule 1
68 Subparagraph 25(c)(i) of Schedule 1
69 Clause 33 of Schedule 1
70 Paragraph 33(a) of Schedule 1
71 Paragraph 33(c) of Schedule 1
72 Subparagraph 34(c)(i) of Schedule 1
73 Clause 37 of Schedule 1
36A Transfer years that start on or after 1 July 2019
(1) This clause applies if the transfer year starts on or after 1 July 2019.
(2) If the financial year in which the expenditure was incurred (the expenditure year) is the financial year immediately before the transfer year then, for the purposes of subsection 45D(2), the transfer is taken to be of the amount worked out by multiplying the amount actually transferred by the long‑term bond rate in relation to the expenditure year plus 1.05.
(3) If the financial year in which the expenditure was incurred (the expenditure year) is not the financial year immediately before the transfer year, the following provisions apply:
(ii) otherwise—the long‑term bond rate in relation to the calculation year plus 1.05;
(b) for the purposes of subsection 45D(2), the transfer is taken to be of the amount worked out under paragraph (a) in relation to the expenditure and the financial year immediately before the transfer year.
37 Transfer years that start before 1 July 2019—expenditure incurred in a standard uplift expenditure year
(a) the transfer year starts before 1 July 2019; and
(b) the financial year in which the expenditure was incurred (the expenditure year) is a standard uplift expenditure year in relation to the project.
(2) If the expenditure year is the financial year immediately before the transfer year then, for the purposes of subsection 45D(2), the transfer is taken to be of the amount worked out by multiplying the amount actually transferred by the long‑term bond rate in relation to the expenditure year plus 1.15.
(3) If the expenditure year is not the financial year immediately before the transfer year, the following provisions apply:
uplift rate, for the financial year in relation to which the calculation is being made (the calculation year), means the long‑term bond rate in relation to the calculation year plus 1.15;
74 Clause 38 of Schedule 1 (heading)
38 Transfer years that start before 1 July 2019—expenditure incurred in a GDP expenditure year
75 Clause 38 of Schedule 1
Omit “If the financial year in which the expenditure was incurred is a GDP expenditure year the following provisions apply:”, substitute:
(aa) the transfer year starts before 1 July 2019; and
(ab) the financial year in which the expenditure was incurred (the expenditure year) is a GDP expenditure year in relation to the project;
76 Paragraph 38(a) of Schedule 1
Omit “GDP expenditure year and”, substitute “expenditure year and”.
77 Paragraph 38(a) of Schedule 1 (subparagraph (i) of the definition of Transferred amount)
Omit “GDP expenditure year”, substitute “expenditure year”.
78 Subsection 20(1)
Omit “within the qualifying period in relation to a production licence in relation to a petroleum project, the Resources Minister, whether on application, request or otherwise”, substitute “the Resources Minister, in relation to a production licence in relation to a petroleum project”.
79 Subsection 20(2)
80 Subsection 20(4)
(4) The Minister may only issue a certificate under subsection (1) in respect of petroleum projects if:
(a) a person who is entitled to receive at least half of the receipts from the sale of petroleum or marketable petroleum commodities produced in relation to each of the projects applies, in writing, to the Minister for the certificate to be issued; or
(b) 2 or more persons who together are entitled to receive at least half of those receipts apply, in writing, to the Minister for the certificate to be issued.
(4A) An application under subsection (4) may only be made within:
(a) the period of 90 days beginning on the day the most recent production licence in relation to any of the petroleum projects came into force; or
(4B) If the Minister does not make a decision on an application under subsection (4) before the later of the following times:
(a) the end of the period of 90 days after the application is made;
(b) if the Minister extends that period under subsection (4C)—the end of the extended period;
the Minister is taken, for the purposes of subsection (12), to have refused the application at that time.
(4C) The Minister may, by written notice to the applicant or applicants, extend the period mentioned in subsection (4B) if the Minister is satisfied that it is necessary to do so to adequately consider the application.
81 Paragraph 20(9)(b)
Omit “or request” (wherever occurring).
82 Subsection 20(10)
Omit “or request”.
83 Paragraph 20(12)(b)
Schedule 2—Removing onshore projects from the petroleum resource rent tax
access authority means a petroleum access authority within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
2 Section 2 (definition of acquisition)
acquisition has the meaning given by section 195‑1 of the GST Act.
3 Section 2 (paragraph (c) of the definition of applicable commencement date)
(c) if the project is the North West Shelf project—1 July 2012.
4 Section 2 (note to the definition of assessment)
5 Section 2 (definition of block)
block has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
(a) definition of consolidated group;
(b) definition of created.
7 Section 2 (definition of eligible real expenditure)
Omit “acquired exploration expenditure,”.
8 Section 2 (definition of excluded fee)
excluded fee means an amount of a kind referred to in paragraph 113(1)(c), subsection 115(5), paragraph 118(1)(c), subsection 178(4) or paragraph 181(1)(c) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
9 Section 2 (definition of exploration permit)
exploration permit means a petroleum exploration permit within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
10 Section 2 (definition of exploration permit area)
exploration permit area means a petroleum exploration permit area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
11 Section 2 (definition of head company)
head company, of a designated company group, has the meaning given by section 2BA.
12 Section 2 (definition of holder of a registered interest)
holder of a registered interest, in relation to a production licence, means a person holding an interest in the production licence, being an interest created by a dealing in relation to which an entry has been made under subsection 494(3) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
13 Section 2 (definition of infrastructure licence)
infrastructure licence has the meaning given by section 7 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
(a) definition of MEC group;
(b) definition of member;
(c) definition of onshore area;
(d) definition of onshore petroleum project.
15 Section 2 (definition of pipeline licence)
16 Section 2 (definition of post‑30 June 2008 petroleum project)
Omit “an onshore petroleum project and”.
17 Section 2 (paragraph (b) of the definition of production licence)
Omit “reservoirs; or”, substitute “reservoirs.”.
18 Section 2 (paragraph (c) of the definition of production licence)
19 Section 2 (note to the definition of production licence)
production licence area means a petroleum production licence area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and, in relation to a Greater Sunrise project, includes the Western Greater Sunrise area.
21 Section 2 (definition of production licence notice)
production licence notice, in relation to a petroleum project, means a notice issued under subsection 258(7) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 in relation to the project.
22 Section 2 (definition of provisional head company)
23 Section 2 (definition of registered holder)
registered holder has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
24 Section 2 (definition of retention lease)
retention lease means a petroleum retention lease within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
25 Section 2 (definition of retention lease area)
retention lease area means a petroleum retention lease area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
26 Section 2 (definition of starting base amount)
starting base amount, in relation to a person’s interest in a petroleum project, means the amount (if any) assessed as the starting base amount in relation to the person’s interest under clause 23 of Schedule 2 as in force before 1 July 2019.
(a) definition of starting base asset;
(b) definition of subsidiary member;
(c) definition of value.
28 Sections 2AA, 2AB and 2AC
29 Paragraph 20(1)(c)
30 Paragraph 20(1)(d)
Omit “to the extent (if any) that the projects are not onshore petroleum projects—”.
31 Subsection 20(1A)
(1A) Despite subsection (1), the Minister cannot specify, under that subsection, a production licence relating to the North West Shelf project.
Omit “(other than project natural gas (within the meaning of the regulations) to which paragraph (f) applies)”.
33 Paragraph 24(1)(e)
34 Paragraph 24(1)(f)
35 Subsection 24(2) (definition of non‑arm’s length transaction)
36 Subsection 29A(1) (example)
Example: Excess electricity that is produced as part of the petroleum project is sold.
37 Subsection 31(1)
38 Subsection 31(1)(h)
Omit “an onshore petroleum project or”.
39 Subsection 31(2)
40 Section 31AA
31AA Eligible real expenditure—North West Shelf project
Despite section 45, this Division applies in relation to the North West Shelf project as if eligible real expenditure could be incurred in relation to the project at any time, including a time before 1 July 2012.
41 Paragraph 32(fb)
42 Subsection 34A(5) (definition of class 2 general project expenditure)
Omit “acquired exploration expenditure or”.
43 Subparagraph 35C(3)(c)(i)
Omit “, or a State or Territory,”.
44 Section 35D
45 Paragraph 35E(1)(a)
(a) in relation to the starting base financial year for the project—the person’s starting base amount in relation to the interest; or
46 Subsection 35E(1) (note)
47 Paragraph 35E(3)(h)
48 Subsection 35E(4)
Omit all the words after “are references”, substitute “to the earliest financial year, after 30 June 2012, in which a production licence relating to the project is in existence”.
49 Subsections 37(2A), (2B) and (2C)
50 Subsection 44(2) (note)
51 Subsection 45(1)
Omit “an onshore petroleum project,”.
52 Subsection 45(2)
53 Subsection 45(4)
Omit “the starting base day under subsection (5) for the person’s interest in the project”, substitute “1 July 2012”.
54 Subsections 45(5) and (6)
55 Subsection 45(7)
56 Subsection 45(8) (heading)
Omit “onshore petroleum projects or”.
57 Subsection 45(8)
Omit “an onshore petroleum project, or the North West Shelf project,”, substitute “the North West Shelf project”.
58 Subparagraph 48(1)(a)(ib)
Omit “, and the look‑back approach is not the valuation approach for vendor’s interest in the project under Part 2 of Schedule 2”.
59 Paragraph 48(3)(c)
Omit “an onshore petroleum project, or”.
60 Paragraph 48A(5)(ca)
(ca) if section 35E did not apply immediately before the transfer time—to have incurred starting base expenditure, in relation to the project, of the transfer percentage of the starting base amount in relation to the vendor’s interest; and
61 Paragraph 48A(11)(c)
62 Subparagraph 58K(1)(b)(v)
63 Subparagraph 58K(1)(b)(vii)
Omit “under Division 1 of Part 3 of Schedule 2, an amount is the starting base amount that the person has”, substitute “the person has a starting base amount”.
64 Subparagraph 58M(1)(c)(v)
65 Subparagraph 58M(1)(c)(vii)
66 Division 8 of Part V
67 Section 61 (note)
68 Subsection 67(2) (note)
69 Subsection 93(1)
Omit “58P,”.
70 Paragraph 97(1A)(b)
Omit “35D(3) and (4),”.
71 Subsection 97(1AA)
Omit “24(1)(d), (e) or (f)”, substitute “24(1)(d) or (e)”.
72 Subsection 109(5)
73 Clause 4C of Schedule 1 (heading)
Omit “onshore or”.
74 Clause 4C of Schedule 1
Omit all the words after “1 July 2012,”, substitute “in relation to the North West Shelf project are not transferable under section 45A, 45B or 45C”.
75 Clause 5 of Schedule 1 (paragraph (a) of the definition of notional taxable profit)
76 Clause 9 of Schedule 1 (paragraph (a) of the definition of notional taxable profit)
77 Schedule 2
78 Subsection 3(1) (definition of Resource Rent Tax area)
Omit all the words after “for the purposes of”, substitute:
the Petroleum Resource Rent Tax Assessment Act 1987, is:
79 Subsection 703‑50(1) (note 1)
80 Subsection 703‑50(1) (note 3)
81 Subsection 719‑50(1) (note 1)
82 Subsection 719‑50(1) (note 3)
83 Subsection 721‑10(2) (table items 95, 100, 105 and 110)
84 Subsections 721‑10(5) and (6)
85 Application—deductible expenditure and assessable receipts
(1) The object of this item is:
(3) The amendments made by this Schedule also apply to the following:
89 Repeals disregarded for the purposes of dependent provisions
If the operation of a provision (the subject provision) of any Act or legislative instrument depends to any extent on a provision of an Act that is repealed by this Schedule, the repeal is disregarded so far as it affects the operation of the subject provision.
90 Division does not limit operation of section 7 of the Acts Interpretation Act 1901
91 Annual returns for the financial year starting 1 July 2018
A person is not required to furnish to the Commissioner a return, under section 59 of the Petroleum Resource Rent Tax Assessment Act 1987, in relation to an onshore petroleum project in relation to the year of tax that starts on 1 July 2018 if both of the following apply:
Note: However, the Commissioner may require the person to furnish a return under section 60 of the Petroleum Resource Rent Tax Assessment Act 1987 in relation to the project in relation to the year of tax, or make an assessment of the person’s taxable profit in relation to the year of tax under subsection 63(1) of that Act.
92 Tax‑related liabilities incurred in relation to periods ending before 1 July 2019
(a) general interest charge mentioned in item 40 of the table in subsection 721‑10(2) of the Income Tax Assessment Act 1997;