Petroleum Resource Rent Tax Assessment Act 1987

s 43 — Deferred use of property on project etc.

(1) Where: (a) a person incurs or incurred capital expenditure in relation to property, being eligible real expenditure in relation to a petroleum project or petroleum projects; (b) the person terminates or terminated the use of the property in relation to the project or all of the projects otherwise than by sale or other disposal; and (c) immediately after the termination of the use of the property the person is or was using the property, or at a later time the person commences or commenced to use the property, in carrying on or providing operations, facilities or other things of a kind referred to in section 37, 38 or 39 in relation to a petroleum project or petroleum projects; then, for the purposes of this Act (including this section): (d) the person shall be taken to have incurred capital expenditure immediately after the termination or at the later time referred to in paragraph (c), as the case may be, in carrying on or providing the operations, facilities or other things, referred to in paragraph (c) in relation to the project or projects referred to in that paragraph; and (e) the amount of the expenditure shall be taken to be equal to so much of the value of the property at the time at which the person is so taken to have incurred the expenditure as, in the opinion of the Commissioner, is attributable to the expenditure referred to in paragraph (a). (2) Where: (a) a person incurs or incurred capital expenditure in relation to property that is not or was not for use in carrying on or providing operations, facilities or other things of a kind referred to in section 37, 38 or 39 in relation to any petroleum project; and (b) the person commences or commenced to use the property at a later time in carrying on or providing such operations, facilities or other things in relation to a petroleum project or projects; the person shall, for the purposes of this Act, be taken to have incurred expenditure, at that later time, in carrying on or providing the operations, facilities or other things in relation to the project or projects of an amount equal to so much of the value of the property at that later time as, in the opinion of the Commissioner, is attributable to the expenditure referred to in paragraph (a).

s 44 — Excluded expenditure

(1) For the purposes of this Act, a reference to excluded expenditure is a reference to: (a) payments of principal or interest on a loan or other borrowing costs; or (b) interest components of hire ‑ purchase payments; or (c) payments of dividends or the cost of issuing shares; or (d) the repayment of equity capital; or (e) payments of a kind known as private override royalty payments; or (f) payments to acquire, or to acquire an interest in, an exploration permit, retention lease, production licence, pipeline licence or access authority, otherwise than in respect of the grant of the permit, lease, licence or authority; or (g) payments to acquire interests in petroleum project profits, receipts or expenditures; or (ga) payments of levy imposed by the Offshore Petroleum (Laminaria and Corallina Decommissioning Cost Recovery Levy) Act 2022 ; or (h) payments of tax under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997 ; or (i) payments of GST under the GST Act; or (j) payments of administrative or accounting costs, or of wages, salary or other work costs, incurred indirectly in carrying on or providing operations, facilities or other things of a kind referred to in sections 37, 38 and 39; or (k) payments in respect of land or buildings for use in connection with administrative or accounting activities in respect of the carrying on or provision of other operations, facilities or things of a kind referred to in sections 37, 38 and 39, not being land or buildings located at or adjacent to the site or sites at which those other operations, facilities or things are carried on or provided. (2) For the purposes of paragraph (1)(e), a private override royalty payment does not include a payment to the extent: (a) it is by way of compensation for carrying on or providing, in an area the operations, facilities or other things comprising a petroleum project; and (b) it is paid: (i) to a native title holder (within the meaning of the Native Title Act 1993 ) whose approved determination of native title (within the meaning of that Act) relates to that area; or (ii) to a registered native title claimant (within the meaning of the Native Title Act 1993 ) whose claimant application (within the meaning of that Act) relates to that area; or (iii) to a person who holds a right that relates to that area and arises under another Australian law dealing with the rights of Aboriginal persons or Torres Strait Islanders in relation to land or waters.

Amendment history: Amended by No 39 of 1997, Sch 4 item 110, effective Sch 3 (item 110): 1 July 1997 | Amended by No 177 of 1999, Sch 6 item 18, effective Sch 8 (items 7–18): 1 July 2000 (s 2(9)) | Amended by No 78 of 2006, Sch 5 item 8, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, Sch 3 item 17 | Sch 3 item 18 | Sch 2 item 9 | Sch 2 item 37 | Sch 6 item 2, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 83 of 2014, Sch 1 item 318 | Sch 1 item 333 | Sch 1 item 339, effective Sch 1 (items 316–318, 330): 1 July 2014 (s 2(1) item 2) | Amended by No 43 of 2019, Sch 2 item 50, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1) | Amended by No 24 of 2022, Sch 1 item 6, effective Sch 1 (items 6, 21): 2 Apr 2022 (s 2(1) item 1)

s 45 — Time of incurring of expenditure

Petroleum projects generally (1) For the purposes of this Act, eligible real expenditure may be incurred by a person in relation to a petroleum project (other than the Bass Strait project or the North West Shelf project) at any time, including a time: (a) before the project commences or after the project ceases; or (b) before the commencement of this Act. The Bass Strait project (3) For the purposes of this Act, eligible real expenditure may be incurred by a person in relation to the Bass Strait project at any time on or after 1 July 1990, including a time after the project ceases. The North West Shelf project (4) For the purposes of this Act, eligible real expenditure may be incurred by a person in relation to the North West Shelf project at any time on or after 1 July 2012, including a time after the project ceases. Resource tax expenditure (7) Despite subsections (1), (3) and (4), resource tax expenditure cannot be incurred by a person, in relation to a petroleum project, before 1 July 2012. Transferred expenditure relating to the North West Shelf project (8) To avoid doubt, eligible real expenditure that a person may incur in relation to the North West Shelf project may include expenditure that a person is taken to have incurred in relation to the project, before or after the commencement of this section, because of section 48 or 48A. (9) However, if the person is taken to have incurred the expenditure because of the application of section 48 or 48A in relation to a transaction entered into before 1 July 2012, subsection 48(3) or 48A(11) (as the case requires) does not apply in relation to the transaction.

Amendment history: Repealed and substituted by No 80 of 1991, item 35 | item 8 | item 10 | item 18 | item 19 | item 5 | item 9 | item 16 | item 26 | item 32 | item 33 | item 34 | item 36 | item 37 | item 38, effective 1 July 1991 | Repealed and substituted by No 18 of 2012, Sch 2 item 11 | Sch 4 item 11 | Sch 2 item 17 | Sch 2 item 20 | Sch 2 item 21, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 88 of 2013, Sch 6 item 44 | Sch 6 item 46 | Sch 6 item 47 | Sch 6 item 48 | Sch 6 item 66 | Sch 7 item 10 | Sch 7 item 11 | Sch 7 item 92 | Sch 7 item 93 | Sch 7 item 94, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 2 item 40 | Sch 2 item 51 | Sch 2 item 52 | Sch 2 item 53 | Sch 2 item 55 | Sch 2 item 56 | Sch 2 item 57, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 45A — Transfer of expenditure—general

(1) This section applies to a person in respect of a financial year in relation to which the person has transferable exploration expenditure. (2) In relation to the financial year, the person must transfer to petroleum projects as much of the transferable exploration expenditure as can be transferred in accordance with the rules set out in Part 5 of Schedule 1. (3) A transfer of expenditure under this section in relation to a financial year: (a) must be made by completing a transfer notice and giving it to the Commissioner not later than 60 days after the end of the financial year or such later day as the Commissioner allows; and (b) subject to subsection (4), takes effect when the notice is given to the Commissioner. (4) A purported transfer of expenditure under this section has no effect if the transfer is not in accordance with the rules set out in Part 5 of Schedule 1. (5) A person commits an offence if the person contravenes this section. Penalty: 20 penalty units. (5A) Subsection (5) does not apply to the extent that the person has a reasonable excuse. Note: A defendant bears an evidential burden in relation to the matters in subsection (5A), see subsection 13.3(3) of the Criminal Code . (5B) An offence under this section is an offence of strict liability. Note: For strict liability , see section 6.1 of the Criminal Code . (6) In this section: transfer notice means a written notice in the approved form.

Amendment history: Inserted by No 80 of 1991, item 8 | item 19 | item 5 | item 9 | item 23 | item 24 | item 25 | item 27, effective 1 July 1991 | Amended by No 118 of 1993, Sch 38 item 127, effective s 125, 132 and 133: 1 July 1991 (s 2(2)) s 126–128 and 130: 24 Dec 1993 (s 2(1)) s 129 and 131: 1 July 1993 (s 2(3)) | Amended by No 146 of 2001, Sch 4 item 106 | Sch 4 item 107 | Sch 4 item 108, effective s 4 and Sch 4 (items 102–115): 15 Dec 2001 (s 2(1)) | Amended by No 41 of 2005, Sch 10 item 226, effective Sch 5 and Sch 10 (items 225–230): 1 Apr 2005 | Amended by No 78 of 2006, Sch 1 item 45E | Sch 1 item 98A | Sch 5 item 9 | Sch 5 item 10, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, Sch 1 item 4C, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8)

s 45B — Transfer of expenditure—group companies

(1) This section applies where: (a) a number of companies are group companies in relation to each other and a financial year; and (b) there is unused transferable exploration expenditure in relation to some of the companies (each of which is in this section called a loss company ) and the financial year. (2) In relation to the financial year, each loss company must transfer, to such of the other companies as are not loss companies and in relation to specified petroleum projects, as much of the loss company’s unused transferable exploration expenditure as can be transferred in accordance with the rules set out in Part 6 of Schedule 1. (3) A transfer of expenditure under this section in relation to a financial year: (a) must be made by completing a transfer notice and giving it to the Commissioner not later than 60 days after the end of the financial year or such later day as the Commissioner allows; and (b) subject to subsection (4), takes effect when the notice is given to the Commissioner. (4) A purported transfer of expenditure under this section has no effect if the transfer is not in accordance with the rules set out in Part 6 of Schedule 1. (5) A person commits an offence if the person contravenes this section. Penalty: 20 penalty units. (5A) Subsection (5) does not apply to the extent that the person has a reasonable excuse. Note: A defendant bears an evidential burden in relation to the matters in subsection (5A), see subsection 13.3(3) of the Criminal Code . (5B) An offence under this section is an offence of strict liability. Note: For strict liability , see section 6.1 of the Criminal Code . (6) In this section: transfer notice means a written notice in the approved form. unused transferable exploration expenditure , in relation to a company and a financial year, means so much of the transferable exploration expenditure in relation to the company and the financial year as is not transferred, or to be transferred, under section 45A.

Amendment history: Inserted by No 80 of 1991, item 19 | item 27 | item 28, effective 1 July 1991 | Amended by No 118 of 1993, Sch 38 item 128, effective s 125, 132 and 133: 1 July 1991 (s 2(2)) s 126–128 and 130: 24 Dec 1993 (s 2(1)) s 129 and 131: 1 July 1993 (s 2(3)) | Amended by No 146 of 2001, Sch 4 item 109 | Sch 4 item 110 | Sch 4 item 111, effective s 4 and Sch 4 (items 102–115): 15 Dec 2001 (s 2(1)) | Amended by No 41 of 2005, Sch 10 item 227, effective Sch 5 and Sch 10 (items 225–230): 1 Apr 2005 | Amended by No 78 of 2006, Sch 1 item 98A | Sch 5 item 11 | Sch 5 item 12, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8)

s 45C — Commissioner’s power to make transfers of expenditure

(1) This section applies if a person contravenes section 45A or 45B by failing to transfer expenditure as required by that section in relation to a financial year. (2) Subject to subsection (3), the Commissioner may transfer the expenditure that the person failed to transfer. (3) The transfer must: (a) be in writing; and (b) be such that, if it had been made by the person, it would have been a transfer of expenditure in relation to the financial year under section 45A or 45B, as the case requires. (4) For the purposes of this Act (other than this section), the transfer is taken to be a transfer by the person under section 45A or 45B, as the case requires. (5) The transfer may not be revoked or varied except: (a) under subsection (6); or (b) pursuant to a decision of the Tribunal or an order of a court; or (c) to correct an error. (6) If: (a) after the transfer, information becomes available to the Commissioner that was not available at the time of the transfer; and (b) the Commissioner would not have transferred the expenditure in the same way, or at all, if he or she had been aware of the information at the time of transferring the expenditure; the Commissioner may, in writing, revoke the transfer and, if appropriate, make another transfer of expenditure under this section. (7) If the Commissioner revokes the transfer, then, for the purposes of this Act, the transfer is taken never to have been made. (8) The Commissioner must, within 30 days after transferring the expenditure, or revoking the transfer of the expenditure, cause written notice setting out particulars of the transfer or revocation to be given to: (a) if the transfer has or had effect as a transfer under section 45A—the person who is taken to have transferred the expenditure; or (b) if the transfer has or had effect as a transfer under section 45B—the person who is taken to have transferred the expenditure and the company to which the expenditure is or was transferred. (9) If a person to whom a notice under subsection (8) is given is dissatisfied with the Commissioner’s decision to transfer the expenditure, or revoke the transfer, as the case may be, the person may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953 .

Amendment history: Inserted by No 80 of 1991, effective 1 July 1991 | Amended by No 41 of 2005, Sch 5 item 5 | Sch 5 item 6, effective Sch 5 and Sch 10 (items 225–230): 1 Apr 2005

s 45D — Effect of transfer of expenditure

(1) This section applies if a person transfers an amount of expenditure: (a) to a petroleum project in relation to a financial year under section 45A; or (b) to a company in relation to a petroleum project and a financial year under section 45B. (2) If the expenditure was incurred in an earlier financial year, then, for the purposes of this Act other than subsection (3), the transfer is taken to be a transfer of the amount worked out in accordance with Part 7 of Schedule 1. (3) The expenditure transferred (disregarding the effect of subsection (2)): (a) must not be transferred again in relation to the financial year; and (b) must not be counted again as expenditure incurred, or taken to be incurred, by a person: (i) when working out the liability of the person to tax in relation to a later financial year; or (ii) when working out, in accordance with Part 2, 3 or 4 of Schedule 1, whether there is expenditure that is transferable by the person in relation to a later financial year.

Amendment history: Inserted by No 80 of 1991, effective 1 July 1991 | Amended by No 18 of 2012, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8)

s 45E — Instalment transfers and annual transfers

(1) Subject to this section, the following provisions apply in relation to instalment periods in the same way as they apply in relation to financial years: (a) this Division; (b) Schedule 1; (c) definitions or other provisions of this Act as they apply for the purpose of this Division or Schedule 1. Note: A person who contravenes section 45A or 45B as the section applies in relation to an instalment period commits an offence: see subsections 45A(5) and 45B(5). (2) The provisions mentioned in subsection (1) apply under that subsection only to the extent necessary to require or permit the making of transfers of expenditure in relation to instalment periods. (3) For the purpose of subsection (1), the following assumptions apply in relation to any petroleum project and an instalment period in a financial year: (a) the instalment period is taken to be a financial year; (b) the amounts taken by subsections 33(3), 34(3), 34A(4), 35(3) and 36(1) (including because of section 48) to be incurred by any person in relation to any project on the first day of the financial year are instead taken to be only the instalment percentages of those amounts; (c) the amounts that would, for the purposes of Schedule 1, be the incurred exploration expenditure amounts in relation to financial years before that financial year are instead taken to be only the instalment percentages of those amounts. (4) In this Act, an annual transfer is a transfer of an amount of expenditure in accordance with this Division in its application to a financial year. (5) In this Act, an instalment transfer is a transfer of an amount of expenditure in accordance with this Division in its application under this section to an instalment period. (6) Despite subsection 45D(3), if an instalment transfer of an amount of expenditure is made in relation to an instalment period in a financial year, the instalment transfer does not prevent the transfer of all (or a part) of that expenditure being made again: (a) in relation to a later instalment period; or (b) in relation to the financial year or a later financial year (as an annual transfer). Note: In some circumstances, interest may be charged in relation to an instalment transfer if the expenditure cannot be transferred again under this Division as an annual transfer: see section 98A. (7) In this section: instalment period includes a period in a financial year that would be an instalment period if the financial year were a year of tax.

Amendment history: Inserted by No 78 of 2006, Sch 1 item 1 | Sch 1 item 2 | Sch 1 item 9 | Sch 1 item 98A, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8)

s 46 — Credits in respect of closing ‑ down expenditure

(1) If, in relation to a petroleum project, the sum of any closing ‑ down expenditure and any other deductible expenditure incurred by a person in a year of tax exceeds the assessable receipts derived by the person in the year of tax: (a) so much of the excess as does not exceed the amount of the closing ‑ down expenditure is the person’s excess closing ‑ down expenditure for the year of tax; and (b) the person is entitled to a credit of the lesser of the following amounts: (i) an amount equal to 40% of the excess closing ‑ down expenditure for the year of tax; (ii) the total amount of any tax in respect of the project (including in the case of a combined project any pre ‑ combination project in relation to the project) paid or payable by the person in relation to previous years of tax, reduced by the total amount of any credits allowed or allowable to the person under this section in relation to the project in relation to any previous years of tax. Greater Sunrise closing ‑ down credits (2) However, for the purposes of the operation of paragraph (1)(a) in relation to a Greater Sunrise project, the amount that is so much of the excess as does not exceed the amount of the closing ‑ down expenditure is taken to be the amount worked out using the following formula: where: apportionment percentage figure has the meaning given by subsection 2C(2). initial excess means the amount that is so much of the excess as does not exceed the amount of the closing ‑ down expenditure under paragraph (1)(a) ignoring this subsection.

Amendment history: Amended by No 47 of 2004, effective Sch 2 (items 1–18): 7 Feb 2007 | Amended by No 47 of 2009, Sch 3 item 5 | Sch 3 item 18 | Sch 3 item 58D | Sch 3 item 58J, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009

s 47 — Application of credits

(1) Subject to this section, the amount of a credit to which a person is entitled by virtue of this Division is a debt due and payable to the person by the Commissioner on behalf of the Commonwealth. (2) The Commissioner may apply the whole or a part of the credit in total or partial discharge of any liability to the Commonwealth of the person entitled to the credit arising under or by virtue of this Act or any other Act of which the Commissioner has the general administration. (3) Where, under subsection (2), the Commissioner has applied an amount of a credit in discharge of a liability of a person to the Commonwealth, the person shall be deemed to have paid the amount so applied for the purpose for which, and at the time at which, it has been so applied. (4) Where the amount, or the sum of the amounts, applied or paid by the Commissioner as a credit to which a person is entitled under this Division exceeds the amount of the credit to which the person is entitled, the Commissioner may recover the amount of the excess as if it were tax due and payable by the person.

s 48 — Transfer of entire entitlement to assessable receipts

(1A) This section applies if: (a) at a particular time (the transfer time ) a person (the vendor ) enters into a transaction in relation to a petroleum project; and (b) the transaction has the effect of transferring to another person or persons (the purchasers ): (i) the whole of the vendor’s entitlement to derive, after the transaction, assessable receipts in relation to the project; and (ii) any property held by the vendor that is being used in relation to the project; and (c) the purchasers give consideration for the entitlement and property. The transaction may occur at any time (even before the vendor’s first year of tax in relation to the project). (1) For the purposes of this Act (including this section): (a) the purchaser, or each of the purchasers in proportion to his or her acquired entitlement to those receipts, shall be taken: (i) to have derived any assessable receipts, and to have incurred any deductible expenditure (other than class 2 uplifted exploration expenditure or class 2 GDP factor expenditure), in relation to the project that, if the financial year in which the transaction is or was entered into had ended immediately before the transfer time, would have been assessable receipts derived, or such deductible expenditure incurred, by the vendor in relation to the project in that financial year; and (ia) to have incurred, in relation to the project, any expenditure that, if the financial year in which the transaction is or was entered into had ended immediately before the transfer time, would, within the meaning of Schedule 1, have been included in the incurred exploration expenditure amount in relation to the vendor, the project and the financial year or a previous financial year; and Note: this is expenditure on which class 2 uplifted exploration expenditure and class 2 GDP factor expenditure are based. (ib) if section 35E did not apply immediately before the transfer time—to have incurred starting base expenditure, in relation to the project, of the starting base amount in relation to the vendor’s interest; and (ii) to have incurred any liability of the vendor, and to have paid any amounts paid by the vendor, in respect of instalments of tax in relation to the project during the part of the financial year in which the transaction is or was entered into occurring before the transfer time; (b) the vendor shall be taken not to have derived those receipts, incurred that expenditure or that liability or paid those amounts, as the case may be; (c) the vendor shall be taken not to have derived any assessable property receipts in relation to the transaction by reason of the transfer of any property held by the vendor that was being used in relation to the project at the transfer time; (d) the purchaser or purchasers shall be taken not to have incurred any eligible real expenditure in relation to the transaction by reason of the transfer of any such property; (e) in any application of section 27, 28 or 29 after the transfer time, the purchaser shall be taken to have incurred any eligible real expenditure incurred by the vendor in relation to the project (including in the case of a combined project any pre ‑ combination project in relation to the project); and (f) in any application of section 40 after the transfer time, the purchaser shall be taken to have brought to account as a receipt of a kind referred to in section 24, 25, 27, 28 or 29 in relation to the project (including any pre ‑ combination project in relation to the project) any debt so brought to account by the vendor. (2) Expenditure that the purchaser, or a purchaser, is taken to have incurred by subparagraph (1)(a)(ia) is taken to have been so incurred at the time when the vendor incurred it, or is taken to have incurred it. (2A) Expenditure that the purchaser, or a purchaser, is taken to have incurred by subparagraph (1)(a)(ib) is taken to have been so incurred in the first financial year in relation to which section 35E applies in relation to the project. (3) The vendor must give written notice of the transaction, in the approved form, to each purchaser before the end of the latest of the following days: (a) the 60th day after entering into the transaction; (b) the 60th day after the purchasers give consideration for the entitlement and property; (c) if the project is the North West Shelf project, and the transaction was entered into between 1 July 2012 and 30 June 2013—31 August 2013. Note: Subdivision 388 ‑ B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this subsection.

Amendment history: Amended by No 224 of 1992, item 114, effective s 113–120: 1 July 1991 (s 2(3)) | Amended by No 66 of 2000, Sch 6 item 1 | Sch 6 item 2, effective Sch 6: 22 June 2000 (s 2(1)) | Amended by No 78 of 2006, Sch 1 item 45E | Sch 5 item 13 | Sch 5 item 16 | Sch 5 item 17, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, Sch 4 item 13 | Sch 5 item 58Q | Sch 5 item 58R | Sch 6 item 11, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 88 of 2013, Sch 2 item 5 | Sch 2 item 6 | Sch 7 item 94 | Sch 7 item 96 | Sch 7 item 97 | Sch 7 item 124 | Sch 7 item 126 | Sch 7 item 129 | Sch 7 item 143 | Sch 7 item 166, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 2 item 59 | Sch 2 item 85, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 48A — Transfer on or after 1 July 1993 of part of entitlement to assessable receipts

Section applies to transfer of part of entitlement to assessable receipts (1) This section applies if, on or after 1 July 1993, a person enters into a transaction that has the effect of transferring part only of the person’s entitlement to derive, after the transfer, assessable receipts in relation to a petroleum project. Definitions (2) In this section: (a) the person is called the vendor ; (b) the person, or each of the persons, to whom the entitlement to derive assessable receipts is transferred is called a purchaser ; (c) the time at which the transaction is entered into is called the transfer time ; (d) the financial year in which the transaction is entered into is called the transfer year ; (e) the part of the vendor’s entitlement to derive assessable receipts that is being transferred, when expressed as a percentage of the whole of the vendor’s entitlement to derive assessable receipts in relation to the project (as determined before the transfer time), is called the transfer percentage . Transfer time may be before vendor’s first year of tax (3) The transfer time may be before the vendor’s first year of tax in relation to the petroleum project. Subsections (5) to (10) have effect for purposes of this Act (4) If this section applies, subsections (5) to (10) have effect for the purposes of this Act (including this section). Purchaser taken to have derived receipts, incurred expenditure etc. (5) The purchaser, or each of the purchasers in proportion to its acquired entitlement to assessable receipts, is taken: (a) to have derived the transfer percentage of any assessable receipts that, if the transfer year had ended immediately before the transfer time, would have been assessable receipts derived by the vendor in relation to the project in the transfer year; and (b) to have incurred the transfer percentage of any deductible expenditure (other than class 2 uplifted exploration expenditure or class 2 GDP factor expenditure), in relation to the project that, if the transfer year had ended immediately before the transfer time, would have been such deductible expenditure incurred by the vendor in relation to the project in the transfer year; and (c) to have incurred, in relation to the project, the transfer percentage of any expenditure that, if the transfer year had ended immediately before the transfer time, would, within the meaning of Schedule 1, have been included in the incurred exploration expenditure amount in relation to the vendor, the project and the transfer year or a previous financial year; and Note: This is expenditure on which class 2 uplifted exploration expenditure and class 2 GDP factor expenditure are based. (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 (d) to have incurred the transfer percentage of any liability of the vendor, and to have paid the transfer percentage of any amounts paid by the vendor, in respect of instalments of tax in relation to the project during the part of the transfer year that occurred before the transfer time. Vendor taken not to have derived receipts, incurred expenditure etc. (6) The vendor is taken not to have derived, incurred or paid, as the case requires, the transfer percentage of the receipts, expenditure, liabilities and amounts to which subsection (5) applies. Time when purchaser taken to have incurred expenditure to which paragraph (5)(c) applies (7) Expenditure that the purchaser, or any of the purchasers, is taken by paragraph (5)(c) to have incurred is taken to have been so incurred at the time when the vendor incurred it, or is taken to have incurred it. Time when purchaser taken to have incurred expenditure to which paragraph (5)(ca) applies (7A) Expenditure that the purchaser, or any of the purchasers, is taken by paragraph (5)(ca) to have incurred is taken to have been so incurred in the first financial year in relation to which section 35E applies in relation to the project. Treatment of property used in relation to the project (8) As regards property used in relation to the project: (a) the vendor is taken not to have derived any assessable property receipts in relation to the transaction because of the transfer of any property held by the vendor that was being used in relation to the project at the transfer time; and (b) the purchaser or purchasers are taken not to have incurred any eligible real expenditure in relation to the transaction because of the transfer of any such property. Application of sections 27, 28 and 29 (9) In any application of section 27, 28 or 29 after the transfer time, the purchaser, or each of the purchasers in proportion to its acquired entitlement to assessable receipts, is taken to have incurred the transfer percentage of any eligible real expenditure incurred by the vendor in relation to the project (including any pre ‑ combination project in relation to the project). Application of section 40 (10) In any application of section 40 after the transfer time, the purchaser, or each of the purchasers in proportion to its acquired entitlement to assessable receipts, is taken to have brought to account as a receipt of a kind referred to in section 24, 25, 27, 28 or 29 in relation to the project (including any pre ‑ combination project in relation to the project) the transfer percentage of any debt so brought to account by the vendor. Transfer notice to be given to purchasers (11) The vendor must give written notice of the transaction, in the approved form, to each purchaser before the end of the latest of the following days: (a) the 60th day after the transfer time; (b) the 60th day after the purchaser gives consideration for the transfer of the part of the entitlement; (c) if the project is the North West Shelf project, and the transaction time occurred between 1 July 2012 and 30 June 2013—31 August 2013. Note: Subdivision 388 ‑ B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this subsection.

Amendment history: Inserted by No 118 of 1993, Sch 38 item 131, effective s 125, 132 and 133: 1 July 1991 (s 2(2)) s 126–128 and 130: 24 Dec 1993 (s 2(1)) s 129 and 131: 1 July 1993 (s 2(3)) | Amended by No 78 of 2006, Sch 5 item 14, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, Sch 4 item 14 | Sch 4 item 15 | Sch 2 item 42 | Sch 5 item 58R, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 88 of 2013, Sch 7 item 99 | Sch 7 item 100 | Sch 7 item 128 | Sch 7 item 129, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 1 item 26 | Sch 1 item 27 | Sch 2 item 60 | Sch 2 item 61, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 49 — Transfer before 1 July 1984 of partial entitlement to assessable receipts

Where, in relation to a petroleum project: (a) a person (in this section referred to as the vendor ) entered into a transaction before 1 July 1984 that had the effect of transferring part only of the entitlement of the person to receive, after the transfer, assessable receipts in relation to the project to another person or persons (which person or each of which persons is in this section referred to as a purchaser ); (b) at or before the time at which the transaction was entered into, the vendor and purchaser or purchasers entered into an agreement in writing in connection with the transaction to the effect that the whole or a part of the exploration expenditure incurred by the vendor in relation to the project before the time of the transfer should be taken to have been incurred by the purchaser or purchasers in accordance with the agreement; and (c) within 30 days after the day on which this Act comes into operation, the purchaser or a purchaser gives a copy of the agreement to the Commissioner; then, for the purposes of this Act (including this section): (d) the whole or the part of the exploration expenditure of the vendor incurred before the transfer shall be taken to have been incurred instead by the purchaser, or by the purchasers in accordance with the agreement; and (e) where any of the exploration expenditure was expenditure in relation to property transferred to the purchaser or purchasers under the transaction referred to in paragraph (a), the vendor shall be taken not to have derived any assessable property receipts in relation to the property by reason of the transfer and the purchaser or purchasers shall be taken not to have incurred any exploration expenditure in relation to the property by reason of the transfer.

s 50 — Arrangements

(1) In this Subdivision, arrangement means: (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise. (2) A reference in this Subdivision to the carrying out of an arrangement by a person shall be read as including a reference to the carrying out of an arrangement by a person together with another person or other persons.

s 51 — Tax benefits

A reference in this Subdivision to the obtaining by a person of a tax benefit in connection with an arrangement is a reference to: (a) an amount of assessable receipts not being derived by the person in a financial year in relation to a petroleum project where that amount would have been derived, or might reasonably be expected to have been derived, by the person in the financial year in relation to the project if the arrangement had not been entered into or carried out; or (b) an amount of deductible expenditure being incurred by the person in a financial year in relation to a petroleum project where that amount would not have been incurred, or might reasonably be expected not to have been incurred, by the person in the financial year in relation to the project if the arrangement had not been entered into or carried out; and, for the purposes of this Subdivision, the amount of the tax benefit shall be taken to be equal to the amount referred to in paragraph (a) or (b), as the case requires.

s 51A — The bases for identifying tax benefits

(1) This section applies to deciding, under section 51, whether any of the following ( tax effects ) would have occurred, or might reasonably be expected to have occurred, if an arrangement had not been entered into or carried out: (a) an amount of assessable receipts being derived by the person in relation to a petroleum project; (b) an amount of deductible expenditure not being incurred by the person in relation to a petroleum project. (2) A decision that a tax effect would have occurred if the arrangement had not been entered into or carried out must be based on a postulate that comprises only the events or circumstances that actually happened or existed (other than those that form part of the arrangement). (3) A decision that a tax effect might reasonably be expected to have occurred if the arrangement had not been entered into or carried out must be based on a postulate that is a reasonable alternative to entering into or carrying out the arrangement. (4) In determining for the purposes of subsection (3) whether a postulate is such a reasonable alternative: (a) have particular regard to: (i) the substance of the arrangement; and (ii) any result or consequence for the person that is or would be achieved by the arrangement (other than a result in relation to the operation of this Act); but (b) disregard any result in relation to the operation of this Act that would be achieved by the postulate for any person (whether or not a party to the arrangement).

Amendment history: Inserted by No 67 of 2024, effective Sch 2 and Sch 3 (items 8–10): 1 Oct 2024 (s 2(1) item 7)

s 52 — Arrangements to which this Subdivision applies

Arrangement for purpose of obtaining a tax benefit (1) This Subdivision applies to an arrangement if it would be concluded (having regard to the matters in subsection (2)) that the person, or one of the persons, who entered into or carried out the arrangement or any part of the arrangement did so for the sole or dominant purpose of: (a) enabling a person (an eligible person ) to obtain a tax benefit or tax benefits in connection with the arrangement; or (b) enabling the eligible person and another person or other persons each to obtain a tax benefit or tax benefits in connection with the arrangement; whether or not that person who entered into or carried out the arrangement or any part of the arrangement is the eligible person or is the other person or one of the other persons. Have regard to certain matters (2) For the purposes of subsection (1), have regard to the following matters: (a) the manner in which the arrangement was entered into or carried out; (b) the form and substance of the arrangement; (c) the time at which the arrangement was entered into and the length of the period during which the arrangement was carried out; (d) the result in relation to the operation of this Act that, but for this Subdivision, would be achieved by the arrangement; (e) any change in the financial position of the eligible person that has resulted, will result, or may reasonably be expected to result, from the arrangement; (f) any change in the financial position of any person who has, or has had, any connection (whether of a business, family or other nature) with the eligible person, being a change that has resulted, will result or may reasonably be expected to result, from the arrangement; (g) any other consequence for the eligible person, or for any person referred to in paragraph (f), of the arrangement having been entered into or carried out; (h) the nature of any connection (whether of a business, family, or other nature) between the eligible person and any person referred to in paragraph (f). Tax benefit (3) Despite subsection (1), this Subdivision applies to the arrangement only if the eligible person has obtained, or would but for section 53 obtain, a tax benefit in connection with the arrangement.

Amendment history: Repealed and substituted by No 67 of 2024, Sch 1 item 2 | Sch 2 item 1, effective Sch 2 and Sch 3 (items 8–10): 1 Oct 2024 (s 2(1) item 7)

s 53 — Cancellation of tax benefits etc.

(1) Where this Subdivision applies to an arrangement in connection with which a tax benefit has been obtained, or would but for this section be obtained, the Commissioner may: (a) in the case of a tax benefit that is referable to an amount of assessable receipts not being derived by the person in a financial year in relation to a petroleum project—determine that the whole or a part of the amount shall be assessable receipts derived by the person in the financial year in relation to the project; (b) in the case of a tax benefit that is referable to an amount of deductible expenditure being incurred by the person in a financial year in relation to a petroleum project—determine that the whole or a part of the amount shall not be deductible expenditure incurred by the person in the financial year in relation to the project; and (c) in any case—determine that appropriate adjustments (if any) be made to the assessable receipts derived, or deductible expenditure incurred, by: (i) the person in respect of the project in relation to any other financial year or in respect of any other project in relation to any financial year; or (ii) any other person in respect of the project or any other project in relation to any financial year; and any such determination has effect accordingly. (2) Where, at any time, a person considers that the Commissioner should make a determination under paragraph (1)(c) in relation to the person in relation to a petroleum project or projects in relation to a financial year or financial years, the person may post to or lodge with the Commissioner a request in writing for the making by the Commissioner of a determination under that paragraph. (3) The Commissioner shall consider the request and serve on the person a written notice of the Commissioner’s decision on the request. (4) If the person is dissatisfied with the Commissioner’s decision on the request, the person may object against the decision in the manner set out in Part IVC of the Taxation Administration Act 1953 .

Amendment history: Amended by No 216 of 1991, Sch 4 item 119 | Sch 4 item 1953, effective s 113: 1 Mar 1992 (s 2(10) and gaz 1992, No GN7) s 123 and 124: 24 Dec 1991 (s 2(1)) | Amended by No 67 of 2024, Sch 2 item 52 | Sch 2 item 2, effective Sch 2 and Sch 3 (items 8–10): 1 Oct 2024 (s 2(1) item 7)

s 55 — Operation of Subdivision

Nothing in the provisions of this Act other than this Subdivision or in the International Tax Agreements Act 1953 shall be taken to limit the operation of this Subdivision.

Amendment history: Amended by No 22 of 1995, item 35, effective 29 Mar 1995

s 56 — Arm’s length transaction

In this Subdivision, arm’s length transaction means a transaction where the parties to the transaction are dealing with each other at arm’s length in relation to the transaction.

s 57 — Non ‑ arm’s length receipts

(1) Where: (a) under a transaction, a person has derived receipts of a kind referred to in section 23 in relation to a petroleum project; (b) the Commissioner, having regard to any connection between the parties to the transaction or to any other relevant circumstances, is satisfied that the transaction is not an arm’s length transaction; (c) the amount of the receipts is less than the amount (in this subsection referred to as the increased receipts ) that could reasonably have been expected to have been the amount of those receipts if the transaction had been an arm’s length transaction; and (d) the Commissioner determines that this subsection should apply in relation to the person in relation to the transaction; then, for the purposes of the application of this Act in relation to the person in relation to the transaction, the amount of the receipts derived by the person shall be taken to be equal to the increased receipts. (2) Where: (a) under a transaction, a person has not derived receipts of a kind referred to in section 23 in relation to a petroleum project; (b) the Commissioner, having regard to any connection between the parties to the transaction or to any other relevant circumstances, is satisfied that the transaction is not an arm’s length transaction; (c) it could reasonably have been expected that if the transaction had been an arm’s length transaction the person would have derived an amount (in this subsection referred to as the notional receipts ) of receipts of such a kind in relation to the petroleum project; and (d) the Commissioner determines that this subsection should apply in relation to the person in relation to the transaction; then, for the purposes of the application of this Act in relation to the person in relation to the transaction, the person shall be taken to have derived under the transaction receipts of the kind referred to in paragraph (c) in relation to the project of an amount equal to the notional receipts. (3) This section does not apply to receipts determined under paragraph 24(1)(d).

Amendment history: Amended by No 169 of 2001, Sch 1 item 7, effective Sch 1 (items 1–9): 1 Apr 2002 (s 2(3)) Sch 1 (items 10–12, 15): 1 Oct 2001 s 2(1)) | Amended by No 18 of 2012, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 88 of 2013, Sch 7 item 101, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16)

s 58 — Non ‑ arm’s length expenditure

Where: (a) under a transaction, a person has incurred eligible real expenditure in relation to a petroleum project; (b) the Commissioner, having regard to any connection between the parties to the transaction or to any other relevant circumstances is satisfied that the transaction was not an arm’s length transaction; (c) the amount of the expenditure referred to in paragraph (a) was more than the amount (in this section referred to as the reduced expenditure ) that could reasonably have been expected to have been the amount of that expenditure if the transaction were an arm’s length transaction; and (d) the Commissioner determines that this section should apply in relation to the person in relation to the transaction; then, for the purposes of the application of this Act in relation to the person in relation to the transaction, the amount of the expenditure referred to in paragraph (a) shall be taken to be equal to the reduced expenditure.

s 58A — Objects of this Division

The objects of this Division are: (a) to allow a person whose accounts are kept solely or predominantly in a particular foreign currency (the functional currency ) to calculate: (i) the person’s taxable profits; and (ii) certain other amounts; by reference to the functional currency; and (b) to allow companies that: (i) are in a designated company group; and (ii) whose accounts are kept solely or predominantly in a particular foreign currency (the functional currency ); to calculate: (iii) their taxable profits; and (iv) certain other amounts; by reference to the functional currency.

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009

s 58B — Person may elect to be bound by the functional currency rules

(1) A person may elect to be bound by the functional currency rules for the purposes of this Act, with effect from the start of: (a) if the election was made by the person within 30 days after the day on which the Tax Laws Amendment (2009 Measures No. 3) Act 2009 received the Royal Assent—the financial year beginning on 1 July 2009; or (aa) if the election was made by the person within 30 days after the commencement of Schedule 1 to the Petroleum Resource Rent Tax Assessment Amendment Act 2012 —1 July 2012; or (b) in any other case—the financial year following the one in which the person made the election. (2) An election under subsection (1) must be in writing. (3) An election under subsection (1) continues in effect until a withdrawal of the election takes effect (see section 58L). Designated company group—deemed election etc. (4) If: (a) a person has made an election under subsection (1); and (b) at the time when the person made the election, the person was the head company of a designated company group; and (c) the election is in effect for a financial year; and (d) when the election took effect, the person was the head company of a designated company group; and (e) immediately before the end of the financial year, the person is the head company of a designated company group (the current designated company group ); then: (f) each other company that was in the current designated company group immediately before the end of the financial year is taken to have made an election under subsection (1); and (g) an election covered by paragraph (f): (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the other company that was in effect for the financial year. (5) If: (a) a person has made an election under subsection (1); and (b) at the time when the person made the election, the person was the head company of a designated company group; and (c) the election is in effect for a financial year; and (d) during the financial year, the person ceased to be the head company of the designated company group; and (e) immediately before the end of the financial year, another company is the head company of the designated company group; then: (f) the company covered by paragraph (e) is taken to have made an election under subsection (1); and (g) an election covered by paragraph (f): (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the company that was in effect for the financial year; and (h) each other company that was in the designated company group immediately before the end of the financial year is taken to have made an election under subsection (1); and (i) an election covered by paragraph (h): (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the other company that was in effect for the financial year. (6) If: (a) immediately before the end of a financial year, a person is the head company of a designated company group; and (b) the person is not taken, under subsection (5), to have made an election under subsection (1) that is in effect for the financial year; and (c) the person has not made an election under subsection (1) that: (i) is in effect for the financial year; and (ii) under subsection (4), results in each other company that was in the designated company group immediately before the end of the financial year being taken to have made an election under subsection (1); and (d) a company that was in the designated company group immediately before the end of the financial year has made an election under subsection (1); and (e) the election covered by paragraph (d) is in effect for the financial year; the company covered by paragraph (d) is taken to have withdrawn the election covered by paragraph (d) with effect from the start of the financial year.

Amendment history: Inserted by No 47 of 2009, Sch 3 item 10 | Sch 3 item 58C | Sch 3 item 58D | Sch 3 item 58E | Sch 3 item 58F | Sch 3 item 58G | Sch 3 item 58H | Sch 3 item 58J | Sch 3 item 58K | Sch 3 item 58L | Sch 3 item 58M, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 18 of 2012, Sch 3 item 19, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 88 of 2013, Sch 7 item 111 | Sch 7 item 116, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16)

s 58C — Applicable foreign currency

(1) For the purposes of this Act, if: (a) a person has made an election under section 58B (other than an election taken to have been made as a result of the application of subsection 58B(4) or paragraph 58B(5)(h) to a designated company group); and (b) the election is in effect for a financial year; the person’s applicable functional currency for the financial year is the sole or predominant foreign currency in which: (c) if the person is the head company of a designated company group—the person kept the person’s accounts immediately before the end of the financial year; or (d) otherwise—the person kept the person’s accounts at the time when the person made the election. Designated company group (2) For the purposes of this Act, if: (a) a person is taken to have made an election under section 58B as a result of the application of subsection 58B(4) or paragraph 58B(5)(h) to a designated company group; and (b) the election is in effect for a financial year; the person’s applicable functional currency for the financial year is the sole or predominant currency in which the head company of the designated company group kept its accounts immediately before the end of the financial year.

Amendment history: Inserted by No 47 of 2009, Sch 3 item 2, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 88 of 2013, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16)

s 58D — Basic translation rules

(1) If: (a) a person has made an election under section 58B; and (b) that election is in effect for a financial year; the following rules apply: (c) first, for the purpose of working out the taxable profit of the person of the financial year in relation to a petroleum project: (i) an amount that is not in the applicable functional currency is to be translated into the applicable functional currency; and (ii) the definition of foreign currency in section 2 does not apply; and (iii) the applicable functional currency is taken not to be a foreign currency; and (iv) Australian currency and any other currency (except the applicable functional currency) are taken to be foreign currencies; (d) second, the taxable profit of the person of the financial year in relation to the petroleum project is to be translated into Australian currency; (e) third, for the purpose of working out a credit to which the person is entitled under section 46 in relation to the financial year, an amount of excess closing ‑ down expenditure is to be translated into Australian currency. Examples of an amount (2) The following are examples of an amount: (a) an amount of an expense; (b) an amount of an obligation; (c) an amount of a liability; (d) an amount of a receipt; (e) an amount of a payment; (f) an amount of consideration; (g) a value.

Amendment history: Inserted by No 47 of 2009, Sch 3 item 58J | Sch 3 item 58K, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 88 of 2013, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16)

s 58E — Translation rule—assessable receipt

If: (a) a person derives an assessable receipt in relation to a petroleum project; and (b) the receipt is not in the applicable functional currency; and (c) the receipt was derived when an election made by the person under section 58B was in effect; the receipt is to be translated into the applicable functional currency at the exchange rate applicable at the time when the receipt was derived.

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009

s 58F — Translation rule—eligible real expenditure

If: (a) a person incurs eligible real expenditure in relation to a petroleum project; and (b) the expenditure is not in the applicable functional currency; and (c) the expenditure was incurred when an election made by the person under section 58B was in effect; the expenditure is to be translated into the applicable functional currency at the exchange rate applicable at the time the expenditure was incurred.

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 88 of 2013, Sch 7 item 103 | Sch 7 item 104, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16)

s 58G — Translation rule—transfer of entire entitlement to assessable receipts

If: (a) section 48 applies in relation to a transaction; and (b) a person is a purchaser (within the meaning of section 48) in relation to the transaction; and (c) the person is taken, under section 48, to have derived or incurred an amount; and (d) the transfer time (within the meaning of section 48) occurred when an election made by the person under section 58B was in effect; and (e) the amount is not in the applicable functional currency; the amount is to be translated into the applicable functional currency at the exchange rate applicable at the transfer time (within the meaning of section 48).

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009

s 58H — Translation rule—transfer of part of entitlement to assessable receipts

If: (a) section 48A applies in relation to a transaction; and (b) a person is a purchaser (within the meaning of section 48A) in relation to the transaction; and (c) the person is taken, under section 48A, to have derived or incurred an amount; and (d) the transfer time (within the meaning of section 48A) occurred when an election made by the person under section 58B was in effect; and (e) the amount is not in the applicable functional currency; the amount is to be translated into the applicable functional currency at the exchange rate applicable at the transfer time (within the meaning of section 48A).

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009

s 58J — Translation of taxable profit, or excess closing ‑ down expenditure, into Australian currency

(1) If: (a) paragraph 58D(1)(d) requires the translation of the taxable profit of a person of a financial year in relation to a petroleum project; or (b) paragraph 58D(1)(e) requires the translation of an amount of excess closing ‑ down expenditure for the purpose of working out a credit to which a person is entitled under section 46 in relation to a financial year; that taxable profit or excess closing ‑ down expenditure, as the case may be, is to be translated using: (c) if the person elects to use an exchange rate that is an average of all the exchange rates during the financial year—that exchange rate; or (d) if the person elects to use the exchange rate applicable on the last day of the financial year—that exchange rate. (2) An election under paragraph (1)(c) or (d): (a) must be in writing; and (b) is irrevocable. Default election (3) If: (a) either: (i) paragraph 58D(1)(d) requires the translation of the taxable profit of a person of a financial year in relation to a petroleum project; or (ii) paragraph 58D(1)(e) requires the translation of an amount of excess closing ‑ down expenditure for the purpose of working out a credit to which a person is entitled under section 46 in relation to a financial year; and (b) the person does not make an election under paragraph (1)(c) or (d) of this section in relation to the financial year; the person is taken to have made an election under paragraph (1)(c) of this section in relation to the financial year. Continuity of election (4) If: (a) a person has made an election under section 58B; and (b) that election is in effect for 2 or more consecutive financial years; and (c) the person made an election under paragraph (1)(c) of this section in relation to the first of those financial years; the person is taken to have made an election under paragraph (1)(c) of this section in relation to each remaining financial year. (5) If: (a) a person has made an election under section 58B; and (b) that election is in effect for 2 or more consecutive financial years; and (c) the person made an election under paragraph (1)(d) of this section in relation to the first of those financial years; the person is taken to have made an election under paragraph (1)(d) of this section in relation to each remaining financial year. Designated company group—deemed election under paragraph (1)(c) etc. (6) If: (a) a person has made an election under paragraph (1)(c) in relation to a financial year; and (b) at the time when the person made the election, the person was the head company of a designated company group; and (c) immediately before the end of the financial year, the person is the head company of a designated company group (the current designated company group ); then: (d) each other company that was in the current designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(c) in relation to the financial year; and (e) an election covered by paragraph (d): (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the other company that was in effect for the financial year. (7) If: (a) a person has made an election under paragraph (1)(c); and (b) at the time when the person made the election, the person was the head company of a designated company group; and (c) the election is in effect for a financial year; and (d) during the financial year, the person ceased to be the head company of the designated company group; and (e) immediately before the end of the financial year, another company is the head company of the designated company group; then: (f) the company covered by paragraph (e) of this subsection is taken to have made an election under paragraph (1)(c); and (g) an election covered by paragraph (f) of this subsection: (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the company that was in effect for the financial year; and (h) each other company that was in the designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(c); and (i) an election covered by paragraph (h) of this subsection: (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the other company that was in effect for the financial year. (8) If: (a) immediately before the end of a financial year, a person is the head company of a designated company group; and (b) the person is not taken, under subsection (7), to have made an election under paragraph (1)(c) that is in effect for the financial year; and (c) the person has not made an election under paragraph (1)(c) that: (i) relates to the financial year; and (ii) under subsection (6), results in each other company that was in the designated company group immediately before the end of the financial year being taken to have made an election under paragraph (1)(c); and (d) a company that was in the designated company group immediately before the end of the financial year has made an election under paragraph (1)(c) in relation to the financial year; the election covered by paragraph (c) of this subsection is taken not to have been in effect for the financial year. Designated company group—deemed election under paragraph (1)(d) etc. (9) If: (a) a person has made an election under paragraph (1)(d) in relation to a financial year; and (b) at the time when the person made the election, the person was the head company of a designated company group; and (c) immediately before the end of the financial year, the person is the head company of a designated company group (the current designated company group ); then: (d) each other company that was in the current designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(d) in relation to the financial year; and (e) an election covered by paragraph (d): (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the other company that was in effect for the financial year. (10) If: (a) a person has made an election under paragraph (1)(d); and (b) at the time when the person made the election, the person was the head company of a designated company group; and (c) the election is in effect for a financial year; and (d) during the financial year, the person ceased to be the head company of the designated company group; and (e) immediately before the end of the financial year, another company is the head company of the designated company group; then: (f) the company covered by paragraph (e) of this subsection is taken to have made an election under paragraph (1)(d); and (g) an election covered by paragraph (f) of this subsection: (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the company that was in effect for the financial year; and (h) each other company that was in the designated company group immediately before the end of the financial year is taken to have made an election under paragraph (1)(d); and (i) an election covered by paragraph (h) of this subsection: (i) is taken to have been in effect for the financial year; and (ii) supersedes any previous election made by the other company that was in effect for the financial year. (11) If: (a) immediately before the end of a financial year, a person is the head company of a designated company group; and (b) the person is not taken, under subsection (10), to have made an election under paragraph (1)(d) that is in effect for the financial year; and (c) the person has not made an election under paragraph (1)(d) that: (i) relates to the financial year; and (ii) under subsection (9), results in each other company that was in the designated company group immediately before the end of the financial year being taken to have made an election under paragraph (1)(d); and (d) a company that was in the designated company group immediately before the end of the financial year has made an election under paragraph (1)(d) in relation to the financial year; the election covered by paragraph (c) of this subsection is taken not to have been in effect for the financial year.

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 88 of 2013, Sch 7 item 107 | Sch 7 item 109, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16)

s 58K — Special translation rules—events that happened before the current election took effect

Certain expenditure incurred on the day when section 58B election takes effect (1) If: (a) a person has made an election under section 58B (the current election ) with effect from the start of a particular financial year; and (b) any of the following subparagraphs applies: (i) under subsection 33(3), an amount is taken to be class 1 augmented bond rate general expenditure incurred by the person in relation to a petroleum project on the first day of the financial year; (ii) under subsection 34(3), an amount is taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to a petroleum project on the first day of the financial year; (iii) under subsection 34A(4), an amount is taken to be class 2 uplifted general expenditure incurred by the person on the first day of the financial year; (iv) under subsection 35C(5), an amount is taken to be resource tax expenditure incurred by the person in relation to a petroleum project on the first day of the financial year; (vi) under subsections 35E(1) and (1B), or under subsection 35E(3), an amount is taken to be starting base expenditure incurred by the person in relation to a petroleum project on the first day of the financial year; (vii) the person has a starting base amount in relation to an interest in a petroleum project; and (c) as a result of the current election, section 58D requires that the amount be translated into the applicable functional currency; the amount is to be translated into the applicable functional currency at the exchange rate applicable when the current election took effect. Class 2 uplifted exploration expenditure, class 2 GDP factor expenditure and transferable exploration expenditure (2) For the purpose of working out: (a) the class 2 uplifted exploration expenditure; or (b) the class 2 GDP factor expenditure; or (c) the transferable exploration expenditure; that a person is taken to have incurred in a financial year in relation to a petroleum project, if: (d) the person has made an election (the current election ) under section 58B; and (e) the current election is in effect for the financial year; and (f) section 58D requires that an amount of expenditure be translated into the applicable functional currency; and (g) the expenditure was actually incurred before the current election took effect; the expenditure is to be translated into the applicable functional currency at the exchange rate applicable when the current election took effect.

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 88 of 2013, Sch 7 item 111 | Sch 7 item 113, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 1 item 29 | Sch 1 item 30, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 58L — Withdrawal of election

(1) If: (a) a person has made an election under section 58B (other than an election taken to have been made as a result of the application of subsection 58B(4) or paragraph 58B(5)(h) to a designated company group); and (b) the person’s applicable functional currency has ceased to be the sole or predominant currency in which the person keeps the person’s accounts; the person may withdraw the election with effect from immediately after the end of the financial year in which the person withdraws the election. (2) A withdrawal must be in writing. (3) Withdrawing an election does not prevent the person from making a fresh election under section 58B. Designated company groups—deemed withdrawal of election etc (4) If: (a) a person withdraws an election under section 58B with effect from immediately after the end of the financial year in which the person withdraws the election; and (b) at the time when the withdrawal is made, the person is the head company of a designated company group; each other company in the designated company group is taken to have withdrawn the other company’s section 58B election with effect from immediately after the end of the financial year.

Amendment history: Inserted by No 47 of 2009, Sch 3 item 58B, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 88 of 2013, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16)

s 58M — Special translation rules—events that happened before the withdrawal of an election took effect

Certain expenditure incurred on the day when section 58B election takes effect (1) If: (a) a person withdraws an election under section 58B with effect from immediately after the end of a financial year; and (b) the person does not make a fresh election under section 58B with effect from the start of the next financial year; and (c) any of the following subparagraphs applies: (i) under subsection 33(3), an amount is taken to be class 1 augmented bond rate general expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (ii) under subsection 34(3), an amount is taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (iii) under subsection 34A(4), an amount is taken to be class 2 uplifted general expenditure incurred by the person on the first day of the next financial year; (iv) under subsection 35C(5), an amount is taken to be resource tax expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (vi) under subsections 35E(1) and (1B), or under subsection 35E(3), an amount is taken to be starting base expenditure incurred by the person in relation to a petroleum project on the first day of the next financial year; (vii) the person has a starting base amount in relation to an interest in a petroleum project; and (d) section 10 requires that the amount be translated into Australian currency; the amount is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year. Class 2 uplifted exploration expenditure, class 2 GDP factor expenditure and transferable exploration expenditure (2) For the purpose of working out: (a) the class 2 uplifted exploration expenditure; or (b) the class 2 GDP factor expenditure; or (c) the transferable exploration expenditure; that a person is taken to have incurred in a financial year in relation to a petroleum project, if: (d) a person withdraws an election under section 58B with effect from immediately after the end of an earlier financial year; and (e) the person has not made an election under section 58B with effect from the start of an intervening financial year; and (f) section 10 requires that an amount of expenditure be translated into Australian currency; and (g) the expenditure was actually incurred before the withdrawal of the election took effect; the expenditure is to be translated into Australian currency at the exchange rate applicable at the start of the next financial year after that earlier financial year.

Amendment history: Inserted by No 47 of 2009, effective Sch 3 (items 1–20): 1 July 2009 Sch 3 (items 21–36): 1 July 2008 Sch 3 (item 37): 12 May 2009 | Amended by No 88 of 2013, Sch 7 item 116 | Sch 7 item 118 | Sch 7 item 120 | Sch 7 item 121, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 1 item 32 | Sch 1 item 33, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 59 — Annual returns

(1) Where a person derives assessable receipts in a year of tax in relation to a petroleum project, the person shall, unless the person has furnished a return or returns under section 60 in relation to the project in relation to the year of tax, furnish to the Commissioner a return in relation to the project in relation to the year of tax not later than 60 days after the end of the year of tax or such later date as the Commissioner allows. (2) A return under subsection (1) shall: (a) be in the approved form; (b) be furnished in accordance with the regulations; (c) be signed by or on behalf of the person furnishing the return; (d) specify, in relation to the petroleum project and the year of tax concerned, the assessable receipts and deductible expenditure of the person; and (e) contain such other information as is required for the due completion of the form of return. (3) A return under this section in relation to a petroleum project must be accompanied by a copy of any notice given to the person under subsection 48(3) or 48A(11) in relation to the project: (a) since the person last gave the Commissioner a return under this section or section 60 in relation to the project; or (b) if the person has not previously given a return to the Commissioner under this section or section 60 in relation to the project—since the person acquired an entitlement to derive assessable receipts in relation to the project. Note 1: Subdivision 388 ‑ B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this section. Note 2: Under Divisions 357 to 360 in Schedule 1 to the Taxation Administration Act 1953 , the Commissioner may make a ruling about the application of this Act as it affects a person’s tax liability.

Amendment history: Amended by No 118 of 1993, Sch 38 item 130, effective s 125, 132 and 133: 1 July 1991 (s 2(2)) s 126–128 and 130: 24 Dec 1993 (s 2(1)) s 129 and 131: 1 July 1993 (s 2(3)) | Amended by No 41 of 2005, Sch 10 item 228, effective Sch 5 and Sch 10 (items 225–230): 1 Apr 2005 | Amended by No 78 of 2006, Sch 4 item 5 | Sch 5 item 15 | Sch 5 item 16 | Sch 5 item 17, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 60 — Other returns

(1) Where the Commissioner, by notice in writing served on a person, requires the person to furnish to the Commissioner a return in relation to a petroleum project in relation to a year of tax, the person shall furnish the return to the Commissioner, whether or not the person has furnished, or was required to furnish, a return under section 59 or this section in relation to the project in relation to the year of tax. (2) A return under subsection (1) shall: (aa) be in the approved form; and (a) be furnished in the manner and within the time required by the Commissioner in the notice; and (b) specify, in relation to the petroleum project and the year of tax concerned, the assessable receipts and deductible expenditure of the person; and (c) contain such other information as is required in the notice. (3) A return under this section in relation to a petroleum project must be accompanied by a copy of any notice given to the person under subsection 48(3) or 48A(11) in relation to the project: (a) since the person last gave the Commissioner a return under this section or section 59 in relation to the project; or (b) if the person has not previously given a return to the Commissioner under this section or section 59 in relation to the project—since the person acquired an entitlement to derive assessable receipts in relation to the project. Note: Subdivision 388 ‑ B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this section.

Amendment history: Amended by No 78 of 2006, Sch 4 item 6 | Sch 4 item 7 | Sch 4 item 8 | Sch 5 item 16 | Sch 5 item 17, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 61 — Making assessments

The Commissioner must, from returns and any other information in the Commissioner’s possession, make an assessment of the amount of a person’s taxable profit (or that a person has no taxable profit) in relation to a year of tax and a petroleum project, and of the tax payable on that amount (or that no tax is payable).

Amendment history: Amended by No 146 of 2001, Sch 4 item 112, effective s 4 and Sch 4 (items 102–115): 15 Dec 2001 (s 2(1)) | Repealed and substituted by No 78 of 2006, Sch 4 item 9, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, Sch 2 item 43, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 43 of 2019, Sch 2 item 67, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 62 — Self ‑ assessment

(1) This section applies if: (a) at a particular time, a person gives a return to the Commissioner in relation to a year of tax and a petroleum project; and (b) before that time, no return has been given, and no assessment has been made, in relation to the person, the year of tax and the project. (2) The Commissioner is taken to have made an assessment of the amount of the person’s taxable profit (or that the person has no taxable profit) in relation to the year of tax and the project, and of the tax payable on that amount (or that no tax is payable), in accordance with what the person specified in the return. (3) The assessment is taken to have been made on the day the return is given to the Commissioner. (4) On and after the day the Commissioner is taken to have made the assessment, the return is taken to be a notice of the assessment: (a) under the hand of the Commissioner; and (b) given to the person on the day the Commissioner is taken to have made the assessment.

Amendment history: Repealed and substituted by No 78 of 2006, Sch 4 item 67, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 63 — Default assessments

(1) The Commissioner may make an assessment of the amount of a person’s taxable profit (or that a person has no taxable profit) upon which, in the opinion of the Commissioner, tax is payable by the person, and of the amount of that tax (or that no tax is payable), if: (a) the person makes default in giving a return to the Commissioner; or (b) the Commissioner is not satisfied with the person’s return; or (c) the person has not given a return to the Commissioner, and the Commissioner has reason to believe that the person is liable to pay tax. (2) As soon as practicable after an assessment under subsection (1) is made, the Commissioner must give notice in writing of the assessment to the person.

Amendment history: Repealed and substituted by No 78 of 2006, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 64 — Reliance on information in returns and statements

(1) The Commissioner may accept (in whole or in part) the following for the purposes of making an assessment in relation to a person, a year of tax and a petroleum project: (a) a statement in a return of the assessable receipts, deductible expenditure or transferable exploration expenditure in relation to the project; (b) any other statement in the return, or otherwise, made by or on behalf of the person. (2) In determining whether an assessment is correct, any determination, opinion or judgment of the Commissioner made, held or formed in connection with the consideration of an objection against the assessment is taken to have been made, held or formed when the assessment was made.

Amendment history: Amended by No 80 of 1991, item 20, effective 1 July 1991 | Repealed and substituted by No 78 of 2006, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 65 — Validity of assessments

The validity of an assessment is not affected by a failure to comply with this Act.

Amendment history: Amended by No 216 of 1991, Sch 4 item 1953, effective s 113: 1 Mar 1992 (s 2(10) and gaz 1992, No GN7) s 123 and 124: 24 Dec 1991 (s 2(1)) | Amended by No 181 of 1994, Sch 3 item 124 | Sch 5 item 1986 | Sch 5 item 42 | Sch 5 item 43, effective Sch 1 (items 22–85): 13 Oct 1994 Remainder: 19 Dec 1992 | Amended by No 11 of 1999, item 282 | item 283 | item 284 | item 285 | item 286 | item 287 | item 288 | item 289 | item 291 | item 292 | item 295, effective Sch 1 (items 281–296): 1 July 1999 (s 2(3)) | Amended by No 44 of 2000, Sch 3 item 39 | Sch 3 item 40 | Sch 3 item 41 | Sch 3 item 42, effective Sch 3 (items 39, 40): 1 July 2000 (s 2(9)) Sch 3 (items 41–45): 22 Dec 1999 (s 2(1)) | Repealed and substituted by No 78 of 2006, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 66 — Objections to assessments

(1) A person who is dissatisfied with an assessment made in relation to the person may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 . (2) A person cannot object against an assessment ascertaining that no tax is payable by the person in relation to a year of tax and a petroleum project, unless the person is seeking an increase in the person’s tax liability.

Amendment history: Repealed and substituted by No 78 of 2006, Sch 4 item 25, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 67 — Amendment of assessments

(1) The Commissioner may amend an assessment in relation to a person within 4 years after the day on which notice of the assessment was given to the person. Note 1: If a person’s return is taken to be an assessment under section 62, the Commissioner is taken to have given a notice of assessment to the person on the day the person gave the return to the Commissioner: see subsection 62(4). Note 2: The amendment period may be extended: see sections 69, 70 and 71. (2) In addition, the Commissioner may amend an assessment at any time: (a) if he or she is of the opinion there has been fraud or evasion; or (b) to give effect to a decision on a review or appeal; or (c) as a result of an objection, or pending a review or appeal; or (d) to give effect to a determination under paragraph 53(1)(c); or (e) to take account of the operation of subsection 5(4), 20(8), 45A(3), 45B(3) or 45C(6). (3) As soon as practicable after the Commissioner amends an assessment in relation to a person, the Commissioner must give notice in writing of the amended assessment to the person. Note: This section applies to assessments even if no tax is payable: see the definition of assessment in section 2.

Amendment history: Repealed and substituted by No 78 of 2006, Sch 4 item 69 | Sch 4 item 70 | Sch 4 item 71, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, Sch 2 item 23 | Sch 2 item 44, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 43 of 2019, Sch 2 item 68, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 68 — Amended assessments taken to be assessments

An amended assessment is taken to be an assessment for the purposes of this Act, except as otherwise provided.

Amendment history: Repealed and substituted by No 78 of 2006, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 69 — Amending amended assessments

Limit on amending amended assessments under subsection 67(1) (1) The Commissioner cannot amend an amended assessment under subsection 67(1) if the period mentioned in that subsection in relation to the original assessment concerned has ended. Note: The Commissioner may amend amended assessments at any time if subsection 67(2) applies. Refreshed amendment period for amending amended assessments (2) The Commissioner may amend an amended assessment (the earlier amended assessment ), to increase a person’s liability in relation to a particular, within 4 years after the day the Commissioner gave the person notice of the earlier amended assessment, if: (a) the earlier amended assessment reduced the person’s liability in relation to the particular; and (b) the Commissioner accepted a statement made by the person in making the earlier amended assessment. (3) The Commissioner may also amend an amended assessment (the earlier amended assessment ), to reduce a person’s liability in relation to a particular, within 4 years after the day the Commissioner gave the person notice of the earlier amended assessment, if: (a) the earlier amended assessment increased the person’s liability in relation to the particular; or (b) the earlier amended assessment reduced the person’s liability in relation to the particular, but paragraph (2)(b) does not apply. (4) The Commissioner cannot amend an assessment under subsection (3) in relation to a particular if the Commissioner has previously amended an assessment under subsection (2) in relation to that particular. Note 1: The earlier amended assessment may be an amendment of the original assessment or of a previous amendment of the original assessment. Note 2: The Commissioner may amend the earlier amended assessment at any time if subsection 67(2) applies. Note 3: The amendment period mentioned in this section may be extended under section 70.

Amendment history: Repealed and substituted by No 78 of 2006, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 70 — Extended periods for amendment—taxpayer applications and private rulings

Taxpayer applications (1) The Commissioner may amend an assessment in relation to a person after the end of the limited amendment period if the person applied for the amendment in the approved form before the end of the period. Private rulings (2) The Commissioner may amend an assessment in relation to a person after the end of the limited amendment period if: (a) the person applied for a private ruling under Division 359 in Schedule 1 to the Taxation Administration Act 1953 before the end of the period; and (b) the Commissioner made a private ruling under that Division; and (c) the amendment gives effect to the ruling. (3) In this section: limited amendment period , for the amendment of an assessment, means the period mentioned in subsection 67(1) or 69(2) or (3) for the amendment of the assessment.

Amendment history: Repealed by No 216 of 1991, Sch 4 item 29, effective s 113: 1 Mar 1992 (s 2(10) and gaz 1992, No GN7) s 123 and 124: 24 Dec 1991 (s 2(1)) | Inserted by No 78 of 2006, Sch 4 item 69, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 71 — Extended periods for amendment—Federal Court orders and taxpayer consent

(1) This section applies if: (a) the Commissioner has started to examine the affairs of a person in relation to an assessment; and (b) the Commissioner has not completed the examination before the end of the limited amendment period, or that period as extended under this section. (2) The limited amendment period is extended for an additional period if: (a) on an application by the Commissioner before the end of the limited amendment period (or that period as extended under this section), the Federal Court of Australia orders the extension for the additional period; or (b) before the end of the limited amendment period (or that period as extended under this section): (i) the Commissioner requests the person to consent to the extension of the limited amendment period; and (ii) the person, by notice in writing, consents to the extension for the additional period. (3) The Federal Court of Australia may order an extension of the limited amendment period under paragraph (2)(a) only if the Court is satisfied that it was not reasonably practicable, or that it was inappropriate, for the Commissioner to complete the examination within the limited amendment period (or that period as extended under this section), because of: (a) any action taken by the person; or (b) any failure of the person to take action that would have been reasonable for the person to take. (4) The limited amendment period may be extended more than once under this section. (5) In this section: limited amendment period , for the amendment of an assessment, means the period mentioned in subsection 67(1) or 69(2) or (3) for the amendment of the assessment.

Amendment history: Repealed by No 216 of 1991, Sch 4 item 91, effective s 113: 1 Mar 1992 (s 2(10) and gaz 1992, No GN7) s 123 and 124: 24 Dec 1991 (s 2(1)) | Inserted by No 78 of 2006, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 72 — Refund of overpaid amounts

(1) If, because of an amendment of an assessment, a person’s liability (the earlier liability ) to tax or a related charge is reduced, the amount by which the tax or charge is so reduced is taken never to have been payable for the purposes of: (a) section 85 (which applies the general interest charge); and (b) Division 280 in Schedule 1 to the Taxation Administration Act 1953 (which applies the shortfall interest charge). Note: The general interest charge is worked out under Division 1 of Part IIA of the Taxation Administration Act 1953 . (2) The Commissioner must refund or apply the amount of any tax overpaid in accordance with Divisions 3 and 3A of Part IIB of the Taxation Administration Act 1953 . (3) However, if a later amendment of the assessment is made and all or some of the person’s earlier liability in relation to a particular is reinstated, subsection (1) is taken not to have applied, or not to have applied to the extent that the earlier liability is reinstated. Note: If the amendment of an assessment results in an increase in a person’s tax liability, the person is liable to pay shortfall interest charge on the amount of the increase: see Division 280 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Repealed by No 216 of 1991, Sch 4 item 4 | Sch 4 item 73 | Sch 4 item 23A, effective s 113: 1 Mar 1992 (s 2(10) and gaz 1992, No GN7) s 123 and 124: 24 Dec 1991 (s 2(1)) | Inserted by No 78 of 2006, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 82 — When tax and shortfall interest charge payable

Self ‑ assessment and default assessment (1) Tax assessed in relation to a year of tax in accordance with an assessment under Division 2 of Part VI in relation to a person is due and payable by the person on the 60th day after the end of the year of tax. Amended assessments (2) Tax assessed in relation to a year of tax in accordance with an amended assessment in relation to a person is due and payable on the later of the following days: (a) the 21st day after the day on which the Commissioner gives the person notice of the amended assessment; (b) the 60th day after the end of the year of tax. Shortfall interest charge (3) Shortfall interest charge payable by a person in relation to an assessment is due and payable on the 21st day after the day on which the Commissioner gives the person notice of the amount of the charge. Note 1: The Commissioner may defer the time at which tax or the shortfall interest charge is, or would become, due and payable: see section 255 ‑ 10 in Schedule 1 to the Taxation Administration Act 1953 . Note 2: For provisions about collection and recovery of tax or the shortfall interest charge, see Part 4 ‑ 15 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Amended by No 179 of 1999, Sch 18 item 48, effective Sch 2 (items 48–58): 22 Dec 2009 (s 2(1)) | Repealed and substituted by No 78 of 2006, Sch 1 item 98A | Sch 4 item 11 | Sch 4 item 280, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Repealed by No 78 of 2006, Sch 1 item 98A | Sch 4 item 11 | Sch 4 item 280, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 85 — Unpaid tax and charges

(1) A person is liable to pay the general interest charge on any amount of any of the following that remains unpaid after the time by which payment is due: (a) tax the person is liable to pay; (b) shortfall interest charge the person is liable to pay in relation to tax; (c) instalment transfer interest charge the person is liable to pay in relation to an instalment of tax. Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 . (2) The person is liable to pay the general interest charge for each day in the period that: (a) started at the beginning of the day by which the tax, shortfall interest charge or instalment transfer interest charge was due to be paid; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the tax, shortfall interest charge or instalment transfer interest charge; (ii) general interest charge on any of the tax, shortfall interest charge or instalment transfer interest charge.

Amendment history: Repealed and substituted by No 11 of 1999, item 296, effective Sch 1 (items 281–296): 1 July 1999 (s 2(3)) | Amended by No 78 of 2006, Sch 4 item 72 | Sch 4 item 12 | Sch 4 item 13 | Sch 4 item 280 | Sch 5 item 21, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 101 of 2006, Sch 2 item 1043, effective Sch 2 (items 1017, 1041–1043) and Sch 6 (items 1, 6–11): 14 Sept 2006

s 92 — Person in receipt or control of money of non ‑ resident

(1) A person who has authority to receive, control or dispose of money belonging to a non ‑ resident who is liable to an amount of tax or related charge shall, when required by the Commissioner by notice in writing served on the person, pay the amount of tax or charge and, by force of this section, is, when so required: (a) authorised and required to retain from time to time any money that comes to the person on behalf of the non ‑ resident or so much of it as is sufficient to pay the amount of tax or charge payable by the non ‑ resident; (b) made personally liable for the amount of tax or charge after it becomes payable to the extent of any amount so retained, or which should have been so retained, under paragraph (a); and (c) indemnified for all payments that the person makes pursuant to this section. (2) For the purposes of subsection (1), a person who is liable to pay money to a non ‑ resident shall be deemed to be a person who has the control of money belonging to the non ‑ resident, and all money due by the person to the non ‑ resident shall be deemed to be money that comes to the person on behalf of the non ‑ resident. (3) Where the Commonwealth, a State or Territory, or an authority of the Commonwealth, a State or Territory, has the receipt, control or disposal of money belonging to a non ‑ resident, this section (other than paragraph (1)(b)) applies to and in relation to the Commonwealth, the State or the Territory, or the authority of the Commonwealth, of the State or of the Territory, as the case may be, in the same manner as it applies to and in relation to any other person.

Amendment history: Amended by No 78 of 2006, Sch 4 item 16 | Sch 4 item 17 | Sch 4 item 19, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 93 — Interpretation

(1) In sections 85, 92 and 109, but not in any other section of this Act, tax includes an instalment of tax payable under this Division. (2) The ascertainment of the notional tax amount, or the amount of any instalment of tax, in accordance with this Division shall not be deemed to be an assessment within the meaning of any of the provisions of this Act. (3) All amounts of instalments of tax shall be calculated to the nearest dollar.

Amendment history: Amended by No 44 of 2000, Sch 3 item 43 | Sch 3 item 44, effective Sch 3 (items 39, 40): 1 July 2000 (s 2(9)) Sch 3 (items 41–45): 22 Dec 1999 (s 2(1)) | Amended by No 88 of 2013, Sch 7 item 135, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 2 item 69, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 94 — Liability to pay instalments of tax

For the purpose of securing generally the more expeditious collection of tax, a person is liable to pay, in accordance with this Division, 3 instalments of tax in respect of each year of tax of the person in relation to a petroleum project, being a year of tax commencing on or after 1 July 1987.

s 95 — When instalment of tax is payable

Subject to this Division, the 3 instalments of tax payable in respect of a year of tax of a person in relation to a petroleum project are due and payable respectively on 21 October, 21 January and 21 April in the year of tax concerned. Note: For provisions about collection and recovery of an instalment of tax, see Part 4 ‑ 15 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Amended by No 44 of 2000, Sch 3 item 45, effective Sch 3 (items 39, 40): 1 July 2000 (s 2(9)) Sch 3 (items 41–45): 22 Dec 1999 (s 2(1))

s 96 — Amount of instalment of tax

The amount payable by a person as an instalment of tax is the notional tax amount in relation to the instalment period in relation to the instalment.

s 97 — Notional tax amount

(1) Subject to subsection (2), the notional tax amount of a person, in relation to a petroleum project and an instalment period in a year of tax, is the amount worked out in accordance with the formula: where: Current period liability means the amount worked out under subsection (1A). Previous period liability means the amount worked out under subsection (1B). (1A) For the purposes of subsection (1), the current period liability is an amount equal to the tax that would be payable by the person in relation to the petroleum project if: (a) the instalment period were the year of tax; and (aa) without limiting paragraph (a)—any instalment transfers in relation to the instalment period were annual transfers in relation to the year of tax; and (b) the amounts that were taken by subsections 33(3), 34(3), 34A(4), 35(3), 35C(5), 35E(3), 35F(2) and 36(1) (including because of section 48) to be incurred by the person in relation to the project on the first day of the year of tax were instead only the instalment percentages of those amounts; and (c) the amounts that would, for the purposes of Schedule 1, be the incurred exploration expenditure amounts in relation to financial years before the year of tax were instead only the instalment percentages of those amounts. Note: Division 3A of Part V may require or permit the transfer (by instalment transfer ) of transferable exploration expenditure in relation to instalment periods: see section 45E. (1AA) If the whole or a part of the assessable petroleum receipts that would be taken into account in working out the current period liability were determined under paragraph 24(1)(d) or (e) (the special calculation provisions ), then, in calculating the current period liability under subsection (1A): (a) any assessable petroleum receipts determined under the special calculation provisions are to be excluded; and (b) the amount worked out in accordance with the regulations in respect of those assessable petroleum receipts is to be included. (1B) For the purposes of subsection (1), the previous period liability is an amount equal to the sum of the notional tax amounts (if any) worked out under subsection (1) in relation to the person, the petroleum project and any earlier instalment periods in the year of tax. (1BA) However, if a person was taken under subsection 22(3) or (4) to have a taxable profit in relation to the project and the financial year immediately preceding the year of tax, then: (a) subsection (1) of this section does not apply to the person in relation to the project and the year of tax; and (b) subject to subsection (2) of this section, the notional tax amount of the person, in relation to the project and an instalment period in the year of tax, is the tax that would, if the instalment period were a year of tax, be payable on the amount worked out in accordance with the formula: where: current period receipts means: (a) if the project is not a Greater Sunrise project—the assessable receipts derived by the person in relation to the project in the instalment period; or (b) if the project is a Greater Sunrise project—the assessable receipts derived by the person in relation to the project in the instalment period multiplied by the apportionment percentage figure for the instalment period. previous period receipts means: (a) if the instalment period is the first instalment period in the year of tax—nil; or (b) if paragraph (a) does not apply—the current period receipts for the instalment period that ended most recently before the end of the instalment period. (1BB) For the purposes of subsection (1BA), if the whole or a part of the assessable petroleum receipts that would be taken into account in working out the current period receipts were determined under paragraph 24(1)(d) or (e) (the special calculation provisions ), then, in calculating the current period receipts: (a) any assessable petroleum receipts determined under the special calculation provisions are to be excluded; and (b) the amount worked out in accordance with the regulations in respect of those assessable petroleum receipts is to be included. (1C) If the petroleum project is a combined project, the references in paragraph (1A)(b) and subsections (1B) and (1BA) to the project are to be read as including references to the pre ‑ combination projects in relation to the project. (2) Where: (a) a person has not furnished information under section 98 in relation to an instalment of tax; or (b) the Commissioner is not satisfied with the information furnished by a person under section 98 in relation to an instalment of tax; the Commissioner may determine that the notional tax amount of the person in respect of the period to which the instalment of tax relates is such amount that, in the opinion of the Commissioner, might reasonably be expected to be the notional tax amount, ascertained in accordance with subsection (1) or (1BA), of the person in respect of the instalment period. (3) As soon as practicable after a determination is made under subsection (2) in relation to a person, the Commissioner shall cause notice of the determination to be served on the person.

Amendment history: Amended by No 80 of 1991, item 21 | item 33, effective 1 July 1991 | Amended by No 169 of 2001, Sch 1 item 8, effective Sch 1 (items 1–9): 1 Apr 2002 (s 2(3)) Sch 1 (items 10–12, 15): 1 Oct 2001 s 2(1)) | Amended by No 78 of 2006, Sch 1 item 8 | Sch 1 item 9, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8) | Amended by No 88 of 2013, Sch 7 item 79 | Sch 7 item 136 | Sch 7 item 137, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 2 item 70 | Sch 2 item 71, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1) | Amended by No 37 of 2024, Sch 5 item 6 | Sch 5 item 7 | Sch 5 item 8 | Sch 5 item 9, effective Sch 5: 1 July 2024 (s 2(1) item 4)

s 98 — Instalment statement

(1) Where a person is liable to pay an instalment of tax in respect of an instalment period, the person shall, not later than the date on which the instalment is due and payable or such later date as the Commissioner allows, furnish, in accordance with the approved form, such information relating to the basis of the calculation of that instalment as is required by the form. (2) Subsection (1) does not apply in relation to an instalment of tax that a person is liable to pay in respect of an instalment period where the amount of the instalment in relation to the instalment period and in relation to each preceding instalment period (if any) is nil.

Amendment history: Amended by No 41 of 2005, Sch 1 item 61 | Sch 10 item 229, effective Sch 5 and Sch 10 (items 225–230): 1 Apr 2005

s 98A — Instalment transfer interest charge—liability

Situation in which charge applies (1) Subject to subsections (2) and (3), this section applies to a person (the liable person ) in relation to an amount of expenditure (the instalment transfer excess ) if: (a) an instalment transfer of the amount in relation to an instalment period in a year of tax is made: (i) by the liable person to a petroleum project under section 45A (as the section applies because of section 45E); or (ii) to the liable person in relation to a petroleum project under section 45B (as the section applies because of section 45E); and (b) an annual transfer, in relation to the year of tax, of the amount to the same project, or to the liable person in relation to the same project, cannot be made because of the application of clause 22 or 31 of Schedule 1 (whether or not there is any other reason preventing such an annual transfer). Note 1: This section may apply separately to a person in relation to 2 or more instalment transfers in the same year of tax, even if the same instalment transfer amount is transferred between the same projects or companies by each instalment transfer (as allowed under subsection 45E(6)). Note 2: If a transfer is made by the Commissioner under section 45C because of a failure of a person to make a transfer as required by section 45A or 45B, the transfer is taken to be a transfer by the person under section 45A or 45B (as the case requires): see subsection 45C(4). Instalment transfer excess—offsets (2) The amount of the instalment transfer excess (as it would be apart from this subsection), in relation to a petroleum project, is reduced by: (a) an amount equal to so much of the excess as must be applied or transferred to reduce or eliminate any person’s taxable profit in relation to any petroleum project and the year of tax; and (b) any amount of expenditure that must be transferred, by annual transfer in relation to the year of tax, to the project, or to the liable person in relation to the project, because the excess cannot be transferred as mentioned in paragraph (1)(b). (3) This section does not apply if the instalment transfer excess is reduced to zero (or a negative amount) by the operation of subsection (2). Liability to pay charge (4) The liable person is liable to pay a charge (the instalment transfer interest charge ) on the instalment transfer excess for each day in the following period (the instalment transfer charge period ) in the year of tax: (a) if the instalment period to which the excess relates is the first instalment period in the year—the period: (i) starting at the start of the day on which instalments of tax are due and payable for the first instalment period in the year; and (ii) ending immediately before the day on which instalments of tax are due and payable in relation to the second instalment period in the year; (b) if the instalment period to which the excess relates is the second instalment period in the year—the period: (i) starting at the start of the day on which instalments of tax are due and payable for the second instalment period in the year; and (ii) ending immediately before the day on which instalments of tax are due and payable in relation to the third instalment period in the year; (c) if the instalment period to which the excess relates is the third instalment period in the year—the period: (i) starting at the start of the day on which instalments of tax are due and payable for the third instalment period in the year; and (ii) ending immediately before the day on which tax is due and payable in relation to the year of tax. Note 1: For when instalments of tax are payable, see section 95. For when tax is payable in relation to the year of tax, see section 82. Note 2: For the amount of the charge, see section 98B. For when the charge is payable, see section 98C. For remission of the charge, see section 98D. Charge payable even if person has transferred interest in project (5) Despite sections 48 and 48A, the liable person remains liable for the full amount of the instalment transfer interest charge even if the liable person enters into a transaction that has the effect, after the end of the instalment period, of transferring part or all of the liable person’s entitlement to derive assessable receipts in relation to the project. Statement about charge (6) The liable person must, on or before the 60th day after the end of the year of tax, give the Commissioner information, in the approved form, for use in working out the instalment transfer interest charge. Note: Subdivision 388 ‑ B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this section. (7) In this section: first instalment period , in a year of tax, means the instalment period ending at the end of September in that year. second instalment period , in a year of tax, means the instalment period ending at the end of December in that year. third instalment period , in a year of tax, means the instalment period ending at the end of March in that year.

Amendment history: Inserted by No 78 of 2006, Sch 1 item 3 | Sch 1 item 4 | Sch 1 item 5 | Sch 1 item 6 | Sch 1 item 45E, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8)

s 98B — Instalment transfer interest charge—amount

(1) The instalment transfer interest charge on an amount of instalment transfer excess, for a day in an instalment transfer charge period, is worked out by multiplying the rate worked out under subsection (2) by the sum of the following amounts: (a) the instalment transfer tax; and (b) the instalment transfer interest charge payable on the excess for the previous days in the instalment transfer charge period. (2) The rate is: (3) In this section: base interest rate , for a day, has the meaning given by section 8AAD of the Taxation Administration Act 1953 . instalment transfer tax is the amount worked out by multiplying the instalment transfer excess by the rate at which tax is imposed by the Petroleum Resource Rent Tax (Imposition—General) Act 2012 in relation to the year of tax in which the instalment period to which the excess relates occurred.

Amendment history: Inserted by No 78 of 2006, Sch 1 item 98A, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 18 of 2012, Sch 6 item 12, effective Sch 1 (items 1–10, 12–46), Sch 2 (items 1–13), Sch 3, Sch 4, Sch 5 (items 1, 6–12) and Sch 6 (items 1, 2, 9–12): 1 July 2012 (s 2(1) items 2, 4–7, 9–14) Sch 1 (item 11): never commenced (s 2(1) item 3) Sch 2 (items 14–16): 29 Sept 2012 (s 2(1) item 8)

s 98C — Instalment transfer interest charge—notification and payment

Notice of charge payable (1) The Commissioner must give a liable person a notice stating the amount of instalment transfer interest charge that the liable person is liable to pay for an instalment transfer charge period. (3) A notice given by the Commissioner under this section is prima facie evidence of the matters stated in the notice. Note: See also section 350 ‑ 10 in Schedule 1 to the Taxation Administration Act 1953 . When payment is due (4) An amount of instalment transfer interest charge that the liable person is liable to pay is due and payable on the 21st day after the day on which the Commissioner gives the liable person notice of the amount of the charge under this section. Note: The Commissioner may defer the time at which the charge is, or would become, due and payable: see section 255 ‑ 10 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Inserted by No 78 of 2006, Sch 1 item 98A | Sch 5 item 19, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Inserted by No 2 of 2015, Sch 2 item 2 | Sch 2 item 35, effective Sch 2 (items 2–4, 73, 88, 89, 95–99 and Sch 4 (item 70, 79): 25 Feb 2015 (s 2(1) items 3, 5, 6) Sch 2 (items 35–38): 1 July 2015 (s 2(1) item 4) | Amended by No 81 of 2016, Sch 10 item 84, effective Sch 10 (items 84, 93): 1 Jan 2017 (s 2(1) item 6)

s 98D — Instalment transfer interest charge—remission

Remitting the charge (1) The Commissioner may remit the whole or a part of an amount of instalment transfer interest charge that a liable person is liable to pay if the Commissioner considers it fair and reasonable to do so. Reasons for not remitting (2) The Commissioner must give the liable person a written statement of the reasons for a decision not to remit an amount of instalment transfer interest charge that the liable person is liable to pay, if the liable person requests the Commissioner, in the approved form, to remit the amount. Note 1: Section 25D of the Acts Interpretation Act 1901 sets out rules about the contents of a statement of reasons. Note 2: Subdivision 388 ‑ B in Schedule 1 to the Taxation Administration Act 1953 applies to approved forms under this section. Objecting against remission decision (3) The liable person may object, in the manner set out in Part IVC of the Taxation Administration Act 1953 , against a decision of the Commissioner not to remit an amount of instalment transfer interest charge that the liable person is liable to pay.

Amendment history: Inserted by No 78 of 2006, Sch 1 item 98A, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 99 — Application of payments of instalments of tax

Where: (a) a person has paid an amount in respect of an instalment of tax in respect of a year of tax, in relation to a petroleum project (including in the case of a combined project any pre ‑ combination project in relation to the project); and (b) an assessment has been made of the amount of tax payable by the person in respect of the year of tax in relation to the project; the Commissioner shall credit the amount so paid in payment successively of: (c) any tax payable by the person in respect of the year of tax in respect of the petroleum project, whether or not that tax is due for payment; and (d) any other liability to the Commonwealth of the person entitled to the credit arising under or by virtue of this Act or any other Act of which the Commissioner has the general administration; and shall refund to the person so much of the amount as is not credited.

s 100 — Unpaid instalments

(1) If, on the date on which tax becomes due and payable by a person in respect of a year of tax in relation to a petroleum project, the whole or a part of an amount payable as an instalment of tax in respect of that year of tax in relation to the project (including in the case of a combined project any pre ‑ combination project in relation to the project) has not been paid and there is no other instalment in respect of that year of tax in relation to the project the whole or a part of which has not been paid: (a) where no part of the tax in respect of that year of tax has been paid—so much (if any) of the amount unpaid in respect of that instalment as exceeds the amount of that tax ceases on that date to be payable; (b) where part only of the tax in respect of that year of tax has been paid—so much (if any) of the amount unpaid in respect of that instalment as exceeds the amount of that tax that has not been paid ceases on that date to be payable; or (c) where the whole of the tax in respect of that year of tax has been paid—the amount unpaid in respect of that instalment ceases on that date to be payable. (2) If, on the date on which tax becomes due and payable by a person in respect of a year of tax in relation to a petroleum project, there are 2 or more instalments of tax in respect of that year of tax in relation to the project (including in the case of a combined project any pre ‑ combination project in relation to the project) the whole or a part of each of which has not been paid: (a) where no part of the tax in respect of that year of tax has been paid or part only of that tax has been paid—the Commissioner may determine that the whole or any part of all or any of the amounts unpaid in respect of those instalments shall cease on that date to be payable; or (b) where the whole of the tax in respect of that year of tax has been paid—each of the amounts unpaid in respect of those instalments ceases on that date to be payable. (3) In making a determination for the purposes of subsection (2), the Commissioner shall have regard to: (a) the extent (if any) to which the sum of the amounts unpaid in respect of the instalments of tax referred to in that subsection exceeds the amount of the tax referred to in that subsection that has not been paid; and (b) any other relevant matters. (4) Where, by reason of the making of a determination by the Commissioner under subsection (2), the amount payable by a person as an instalment has been reduced or an instalment is not payable, the Commissioner shall cause to be served on the person a notice in writing specifying the reduced amount as the amount that is payable as the instalment or stating that the instalment is not payable, as the case may be.

s 106A — Review of certain decisions

A person who is dissatisfied with a decision made under this Act or the regulations in relation to the person, being a decision that is prescribed for the purposes of this section, may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .

Amendment history: Inserted by No 169 of 2001, effective Sch 1 (items 1–9): 1 Apr 2002 (s 2(3)) Sch 1 (items 10–12, 15): 1 Oct 2001 s 2(1))

s 109 — Agents and trustees

(1) The following provisions of this section apply in relation to a person (in this section referred to as the representative ) who, as agent or trustee, derives assessable receipts in relation to a petroleum project. (2) The representative: (a) shall furnish returns in relation to the assessable receipts; and (b) is liable to any tax or related charge payable in respect of the assessable receipts; but only in the capacity of agent or trustee, as the case requires, and each such return shall be separate and distinct from any other return furnished or lodged by the representative. (3) The representative is, by force of this section: (a) authorised and required to retain from time to time any money that comes to the representative in the capacity as agent for the other person or trustee of the trust estate, or so much of it as is sufficient to pay the amount of tax or charge; (b) made personally liable for the amount of tax or charge after it becomes payable to the extent of any amount that the representative is required to retain under paragraph (a); and (c) indemnified for all payments that the representative makes pursuant to this section. (4) For the purposes of ensuring payment of the amount of tax or charge, the Commissioner has the same remedies against attachable property of any kind vested in, under the control or management of, or in the possession of, the representative as the Commissioner would have against the property of any other person in respect of an amount of tax or related charge payable by the other person.

Amendment history: Amended by No 78 of 2006, Sch 4 item 20 | Sch 4 item 22 | Sch 4 item 23 | Sch 4 item 24, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Amended by No 88 of 2013, Sch 7 item 139, effective Sch 7 (items 76–136, 138–166): 1 July 2012 (s 2(1) items 15, 17) Sch 7 (item 137): 29 Sept 2012 (s 2(1) item 16) | Amended by No 43 of 2019, Sch 2 item 72, effective Sch 1 (items 2–83) and Sch 2 (items 1–77, 85–92): 1 July 2019 (s 2(1) item 1)

s 112 — Records to be kept and preserved

(1) A person shall: (a) keep records that record and explain all transactions and other acts engaged in by the person or any other person that are relevant for the purpose of ascertaining the person’s liability under this Act; and (b) retain those records for a period of 7 years after the completion of the transactions or acts to which they relate. (2) A person who is required by this section to keep records shall keep the records: (a) in writing in the English language or so as to enable the records to be readily accessible and convertible into writing in the English language; and (b) so as to enable the person’s liability under this Act to be readily ascertained. (2A) An offence under subsection (1) or (2) is an offence of strict liability. Note: For strict liability , see section 6.1 of the Criminal Code . (3) Nothing in this section shall be taken to require a person (in this subsection referred to as the record keeper ) to keep a record of information relating to a transaction or act engaged in by another person if: (a) where the transaction or act was entered into or done under an arrangement to which the record keeper was a party: (i) the record keeper made all reasonable efforts: (A) to ascertain whether the transaction had been entered into or the act had been done; and (B) to obtain the information; and (ii) did not know, and could not reasonably be expected to have known, the information; or (b) in any other case—the record keeper did not know, and could not reasonably be expected to have known, the information. Note: A defendant bears an evidential burden in relation to the matters in subsection (3), see subsection 13.3(3) of the Criminal Code . (4) Nothing in this section shall be taken to require a person to retain records where: (a) the Commissioner has notified the person that retention of the records is not required; or (b) the person is a company that has gone into liquidation and been finally dissolved. Note: A defendant bears an evidential burden in relation to the matters in subsection (4), see subsection 13.3(3) of the Criminal Code . Penalty: 30 penalty units. Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. Note 2: There is an administrative penalty if you do not keep or retain records as required by this section: see section 288 ‑ 25 in Schedule 1 to the Taxation Administration Act 1953 .

Amendment history: Amended by No 91 of 2000, Sch 2 item 56, effective Sch 2 (items 54–56): (s 2(1)) | Amended by No 146 of 2001, Sch 4 item 113 | Sch 4 item 114 | Sch 4 item 115, effective s 4 and Sch 4 (items 102–115): 15 Dec 2001 (s 2(1))

s 113 — Service on partnerships and associations

Service, whether by post or otherwise, of a notice or document on a member of a partnership or on a member of the committee of management of an unincorporated association or other body of persons shall be deemed, for the purposes of this Act, to constitute service of the notice or other document on each member of the partnership or each member of the association or other body of persons, as the case may be.

s 114 — Regulations

The Governor ‑ General may make regulations, not inconsistent with this Act, prescribing all matters: (a) required or permitted by this Act to be prescribed; or (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act; and, in particular, may make regulations prescribing penalties not exceeding a fine of 5 penalty units for offences against the regulations.

Amendment history: Amended by No 78 of 2006, Sch 5 item 22, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4)

s 17 — What happens if the notional assessable receipts equal or exceed the notional deductible expenditure

If, in relation to the person, the exploration permit or retention lease and the assessable year, the notional assessable receipts equal or exceed the notional deductible expenditure, none of the expenditure included in the notional exploration expenditure is transferable by the person in relation to the assessable year.

Amendment history: Amended by No 97 of 1988, Sch 2 item 28 | Sch 1 item 30, effective s 29(1): 1 Jan 1989 (s 2(1) and gaz 1988, No S399) | Amended by No 146 of 2001, Sch 4 item 103 | Sch 4 item 104 | Sch 4 item 105, effective s 4 and Sch 4 (items 102–115): 15 Dec 2001 (s 2(1)) | Amended by No 78 of 2006, Sch 5 item 3, effective Sch 1 (items 1–10, 12), Sch 2, Sch 3 (items 1, 2, 4–9), Sch 4 (items 1–24, 38) and Sch 5: 1 July 2006 (s 2(1) items 2, 3, 5–11) Sch 3 (item 3): 1 July 2008 (s 2(1) item 4) | Repealed by No 145 of 2010, Sch 1 item 355 | Sch 2 item 25 | Sch 2 item 62, effective Sch 2 (items 59, 60): 17 Dec 2010 (s 2(1) item 2)

s 18 — What happens if the notional deductible expenditure exceeds the notional assessable receipts

(1) If, in relation to the person, the exploration permit or retention lease and the assessable year: (a) the notional deductible expenditure exceeds the notional assessable receipts; and (b) the excess equals or exceeds the notional exploration expenditure; all the expenditure included in the reduced notional exploration expenditure is transferable by the person in relation to the assessable year. (2) If, in relation to the person, the exploration permit or retention lease and the assessable year: (a) the notional deductible expenditure exceeds the notional assessable receipts; and (b) the excess (in this subclause called the notional loss ) is less than the notional exploration expenditure; and (c) the oldest amount of expenditure included in the reduced notional exploration expenditure equals or exceeds the notional loss; so much of that oldest amount as equals the notional loss is transferable by the person in relation to the assessable year. (3) If, in relation to the person, the exploration permit or retention lease and the assessable year: (a) the notional deductible expenditure exceeds the notional assessable receipts; and (b) the excess (in this subclause called the notional loss ) is less than the notional exploration expenditure; and (c) the notional loss exceeds the oldest amount of expenditure included in the reduced notional exploration expenditure; the following provisions have effect: (d) add amounts in accordance with the following rules: (i) start with the oldest amount of expenditure included in the reduced notional exploration expenditure and add to that, in order starting with the next oldest amount, each of the other amounts included in the reduced notional exploration expenditure; (ii) if adding an amount of expenditure would make the total exceed the notional loss, add only so much of the amount as makes the total equal the notional loss and do not add any later incurred amount of expenditure; (e) the expenditure added in accordance with subparagraphs (d)(i) and (ii) is transferable by the person in relation to the assessable year.

Amendment history: Amended by No 88 of 2009, Sch 5 item 212 | Sch 5 item 213, effective Sch 5 (items 209–230): 18 Sept 2009 (s 2(1) item 7) | Repealed by No 145 of 2010, Sch 2 item 19, effective Sch 2 (items 59, 60): 17 Dec 2010 (s 2(1) item 2)