Petroleum Resource Rent Tax Assessment Regulations 2024
PART 4
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THE RESIDUAL PRICING METHOD
Division 3
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Allocating capital costs to years of tax
SECTION 43
CAPITAL COSTS INCURRED FOR A UNIT OF PROPERTY COMPLETED OVER SEVERAL YEARS
43(1)
This section applies to an included capital cost for the taxpayer if the cost is incurred in relation to a unit of property: (a) that is constructed over a period of time; and (b) for which the last capital cost is incurred in a later financial year (the final cost year ).
43(2)
For the purposes of step 8 of the residual pricing method, the included capital cost: (a) is augmented for the number of calendar years between the start date for the included capital cost and 1 January in the final cost year; and (b) is taken to be incurred in the final cost year.(a) the cost as augmented under this subsection; and
(b) a start date for the cost of 1 January in the final cost year.
43(3)
This section does not apply to an included capital cost that is included under subsection 35(10) .
This section applies to an included capital cost for the taxpayer if the cost is incurred in relation to a unit of property: (a) that is constructed over a period of time; and (b) for which the last capital cost is incurred in a later financial year (the final cost year ).
43(2)
For the purposes of step 8 of the residual pricing method, the included capital cost: (a) is augmented for the number of calendar years between the start date for the included capital cost and 1 January in the final cost year; and (b) is taken to be incurred in the final cost year.
Note 1:
The start date for the included capital cost may have been affected by subsection 41(2) .
Note 2:
The steps of the method work sequentially. So, (assuming this subsection applies to the cost) the next applicable step or provision that refers to the cost will be referring to:
43(3)
This section does not apply to an included capital cost that is included under subsection 35(10) .
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