Document ID: chunk:federal_register_of_legislation:C2024C00818:clause:1_12:p1
Version: federal_register_of_legislation:C2024C00818
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 1/3)
Character Range: 283488–286285

12  What happens if there is a notional taxable profit
 (1) This clause applies if there is a notional taxable profit in relation to the person, the petroleum project and the assessable year.
 (2) For the purposes of this clause, the available exploration expenditure amount for a GDP expenditure year is worked out as follows:
 (a) work out, in relation to the GDP expenditure year and each later financial year ending before the assessable year, an amount in accordance with the formula:

  where:
  Exploration expenditure amount means:
 (i) in making the calculation in relation to the GDP expenditure year—the incurred exploration expenditure amount in relation to the GDP expenditure year; or
 (ii) in making the calculation in relation to one of the later financial years—the amount calculated under this paragraph in relation to the immediately preceding financial year for the purpose of working out the available exploration expenditure amount for the GDP expenditure year;
  GDP factor means the GDP factor in relation to the financial year in relation to which the calculation is being made;
 (b) the available exploration expenditure amount for the GDP expenditure year is the amount worked out under paragraph (a) in relation to the most recent of the later financial years referred to in that paragraph.
 (3) If the total of the available exploration expenditure amounts for the GDP expenditure years is less than or equal to the notional taxable profit:
 (a) the person is taken to have incurred an amount of class 2 GDP factor expenditure in the assessable year in relation to the project equal to the total of those available exploration expenditure amounts; and
 (b) that class 2 GDP factor expenditure is attributable to all the expenditure included in the incurred exploration expenditure amounts for the GDP expenditure years; and
 (c) none of the expenditure included in the incurred exploration expenditure amounts for the GDP expenditure years is transferable by the person in relation to the assessable year.
 (4) If the total of the available exploration expenditure amounts for the GDP expenditure years exceeds the notional taxable profit:
 (a) the person is taken to have incurred an amount of class 2 GDP factor expenditure in the assessable year in relation to the project equal to the notional taxable profit; and
 (b) the expenditure to which that class 2 GDP factor expenditure is attributable is to be worked out in accordance with whichever of subclauses (5) and (6) is applicable; and
 (c) the expenditure included in the incurred exploration expenditure amounts for the GDP expenditure years that is not expenditure to which that class 2 GDP factor expenditure is attributable is transferable by the person in relation to the assessable year.
 (5) If:
 (a)