Assessable receipts derived in relation to a petroleum project need to be taken into account in the financial year in which they are receivable or, in certain cases, when they are deemed to be receivable.
As assessable receipts are derived when they are receivable or deemed to be receivable, they may be derived before the project commences (that is, before a production licence comes into force) or after it has ceased.
Broadly, in the case of onshore petroleum projects and the North West Shelf project, assessable receipts that are derived from 1 July 2012 will be assessable. However, where an entity has chosen the look-back approach to work out its starting base, certain assessable receipts may be derived before 1 July 2012.
Also, where an onshore petroleum project or the North West Shelf project receives a payment before 1 July 2012 for petroleum or a marketable petroleum commodity not recovered or produced until after 30 June 2012, the receipt will be taken to have been derived after 30 June 2012, when the recovery or processing activity is undertaken.