Document ID: chunk:federal_register_of_legislation:C2012A00018:clause:2_9
Version: federal_register_of_legislation:C2012A00018
Segment Type: clause
Provision Reference: sch 2 cl 9
Character Range: 64445–66433

9  Reducing the starting base amount
 (1) Despite clause 7, a starting base amount under that clause is reduced by the sum of all the reductions (if any) required by subclauses (2) and (3) of this clause in relation to any starting base assets to which the starting base amount relates.

Use etc. that is not related to project activities
 (2) Reduce the starting base amount to the extent (if any) that the amount relates to a starting base asset that, during the starting base period relating to the asset, was used, or being constructed for use, for a purpose other than carrying on project activities relating to the petroleum project.

Use etc. that equates to excluded expenditure
 (3) Reduce the starting base amount (or, if that amount is reduced under subclause (2), that amount as so reduced) to the extent (if any) that the amount:
 (a) relates to a starting base asset that, during the starting base period relating to the asset, was used, or being constructed for use, for carrying on project activities relating to the petroleum project; but
 (b) would have been excluded expenditure if it had been an amount of expenditure that the person holding the interest in the project incurred.
 (4) However, subclause (3) does not apply if:
 (a) under Part 2, the market value approach is the valuation approach for the person's starting base assets relating to the petroleum project; and
 (b) the amount would have been excluded expenditure only because of paragraph 44(e), (f) or (g).
Note: Subclause (4) ensures that a starting base amount in relation to an interest in a petroleum project is not reduced under the market value approach.

Starting base period
 (5) The starting base period in relation to a starting base asset is a period, between 2 May 2010 and 1 July 2012:
 (a) during which a person held both the asset and the interest in the project; and
 (b) during which the asset was, for any purpose, used or being constructed for use.

Division 2—Starting base assets