Document ID: chunk:federal_register_of_legislation:C2012A00018:clause:4_35e:p1
Version: federal_register_of_legislation:C2012A00018
Segment Type: clause
Provision Reference: sch 4 cl 35E (pt 1/2)
Character Range: 44731–47369

35E  Starting base expenditure
 (1) For the purposes of this Act, a reference to the starting base expenditure incurred by a person in a financial year in relation to a petroleum project (not being a combined project) is a reference to:
 (a) in relation to the starting base financial year for the project:
 (i) if the look‑back approach is not the valuation approach for the person's interest in the project under Part 2 of Schedule 2—the person's starting base amount in relation to the interest; or
 (ii) if subparagraph (i) does not apply—an amount included in the person's starting base expenditure in relation to the project under clause 18 of Schedule 2; or
 (b) in relation to any subsequent financial year—any amount that is taken by subsection (3) or Division 5 to be starting base expenditure incurred by the person in relation to the project in the financial year.
Note: For starting base amounts, see Division 1 of Part 3 of Schedule 2.
 (2) For the purposes of this Act, a reference to the starting base expenditure incurred by a person in a financial year in relation to a combined project is a reference to:
 (a) any amount that is taken by subsection (3) or Division 5 to be starting base expenditure incurred by the person in relation to the project in the financial year; or
 (b) if the project combination certificate in relation to the project came into force in the financial year:
 (i) any amount of starting base expenditure; or
 (ii) any amount that is taken by subsection (3) or Division 5 to be starting base expenditure;
  incurred by the person in relation to the pre‑combination projects in relation to the project in the financial year.
 (3) For the purposes of subsection (1) or (2), if the sum of:
 (a) the class 1 augmented bond rate general expenditure; and
 (b) the class 1 augmented bond rate exploration expenditure; and
 (c) the class 2 augmented bond rate general expenditure; and
 (d) the class 1 GDP factor expenditure; and
 (e) the class 2 augmented bond rate exploration expenditure; and
 (f) the class 2 GDP factor expenditure; and
 (g) the resource tax expenditure; and
 (h) the acquired exploration expenditure; and
 (i) the starting base expenditure;
incurred by a person in a financial year (the assessable year) in relation to the petroleum project exceeds the assessable receipts derived by the person in the assessable year in relation to the project, the person is taken to incur, in relation to the project and on the first day of the next financial year, an amount of starting base expenditure worked out in accordance with the formula:
where:
augmented bond rate means the long term