Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p14
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 14/95)
Character Range: 5584882–5587914

Guide to Division 417
417‑A Introduction
417‑B Capital allowances
417‑C Capital gains tax
417‑D Transferring or applying tax losses
417‑E Foreign income tax offset
417‑F Transfer pricing

Guide to Division 417

417‑1  What this Division is about
      This Division alters the operation of this Act on several topics (outlined in the table of Subdivisions above) to address how the Timor Sea Maritime Boundaries Treaty could affect the tax treatment, under Australian income tax law, of entities that undertake petroleum activities in the affected area.

Subdivision 417‑A—Introduction

Table of sections
417‑5 Object
417‑10 Meaning of transitioned petroleum activities

417‑5  Object
  The object of this Division is to give effect to Australia's obligations under the *Timor Sea Maritime Boundaries Treaty to provide, in relation to *transitioned petroleum activities, equivalent tax treatment to the tax treatment previously applying in relation to those activities.

417‑10  Meaning of transitioned petroleum activities
 (1) Transitioned petroleum activities are petroleum activities (within the meaning of the *Timor Sea Maritime Boundaries Treaty) that are undertaken:
 (a) pursuant to the terms of any of the following *production sharing contracts:
 (i) Production Sharing Contract JPDA 03‑12;
 (ii) Production Sharing Contract JPDA 03‑13;
 (iii) Production Sharing Contract JPDA 06‑105;
 (iv) Production Sharing Contract JPDA 11‑106; or
 (b) pursuant to the terms of a production sharing contract that:
 (i) comes into force after, or when, that treaty entered into force; and
 (ii) has the effect of replacing, and relates to the same area as, a production sharing contract mentioned in paragraph (a); or
 (c) in a part of the *Petroleum Exploration Permit WA‑523‑P permit area that, as a result of that treaty entering into force, ceased to be within the continental shelf of Australia.
Note: This part of the Petroleum Exploration Permit WA‑523‑P permit area includes the Buffalo Oil Field.
 (2) The Petroleum Exploration Permit WA‑523‑P permit area is the area that, just before the *Timor Sea Maritime Boundaries Treaty entered into force, was the subject of Petroleum Exploration Permit WA‑523‑P, granted under Part 2.2 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 on 27 May 2016.

Subdivision 417‑B—Capital allowances

Table of sections
417‑25 Deducting amounts for depreciating assets
417‑30 Balancing adjustments
417‑35 Allocating assets to a project pool
417‑40 Deduction for expenditure on mining site rehabilitation
417‑45 Capital expenditure
417‑50 Transferring entitlement to deductions relating to a project pool

417‑25  Deducting amounts for depreciating assets
 (1) If:
 (a) you use a *depreciating asset, or you have it *installed ready for use, for a purpose of undertaking *transitioned petroleum activities; and
 (b) before the *Timor Sea Maritime Boundaries Treaty entered into force, you or another entity used the asset, or you or another entity had it installed ready for use, for