Document ID: chunk:federal_register_of_legislation:C2012A00018:clause:2_18:p1
Version: federal_register_of_legislation:C2012A00018
Segment Type: clause
Provision Reference: sch 2 cl 18 (pt 1/2)
Character Range: 79319–82118

18  Expenditure incurred in acquiring interests in petroleum projects

Interests acquired between 1 July 2007 and 2 May 2010
 (1) If:
 (a) under Part 2, the look‑back approach is the valuation approach for an interest in an onshore petroleum project or the North West Shelf project; and
 (b) during the period between 1 July 2007 and 2 May 2010, either or both of the following events occurred:
 (i) a person acquired the interest;
 (ii) if the person holding the interest is a company—the person was acquired by another company;
the starting base expenditure, incurred by the person referred to in paragraph (b) in relation to the last such event to occur in relation to the interest during that period, includes the expenditure (acquisition expenditure) referred to in subsection (2).
 (2) The acquisition expenditure is whichever of the following is applicable:
 (a) the expenditure incurred by the person in acquiring the interest;
 (b) the expenditure incurred by the other company in making the acquisition.
 (3) Despite subclause (1), the starting base expenditure incurred by the person in relation to the project does not include acquisition expenditure to the extent (if any) that the acquisition expenditure reflects the value of things that are not project activities relating to the project.
 (4) Despite subclause (1), the starting base expenditure incurred by the person in relation to the project does not include acquisition expenditure to the extent that the expenditure relates to an acquired exploration expenditure amount.
 (5) Acquisition expenditure included under subclause (1) in the starting base expenditure incurred by the person is taken, for the purposes of this Act, to have been incurred on 2 May 2010.

Interests acquired before 30 June 2007
 (6) If, under Part 2, the look‑back approach is the valuation approach for an interest in an onshore petroleum project or the North West Shelf project, the eligible real expenditure incurred by the person holding the interest does not include:
 (a) if the person acquired the interest before 30 June 2007—expenditure (acquisition expenditure) incurred by the person in acquiring the interest; or
 (b) if the person is a company that was acquired by another company before 30 June 2007—expenditure (acquisition expenditure) incurred by the other company in making the acquisition.

Acquisitions
 (7) For the purposes of this clause and clause 19, the person holding an interest in an onshore petroleum project or the North West Shelf project is taken to have acquired the interest if and only if:
 (a) in a case where the project existed on 2 May 2010—the person purchased the interest; or
 (b) in a case where the project did not exist on 2 May 2010—the person purchased:
 (i) the exploration permit or retention lease from