PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987

PART II - INTERPRETATION  

SECTION 2   2   DEFINED TERMS  


In this Act, unless the contrary intention appears:

Aboriginal person
has the meaning given by subsection 4(1) of the Aboriginal and Torres Strait Islander Act 2005 .

access authority
means a petroleum access authority within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

accounts
includes:


(a) ledgers; and


(b) journals; and


(c) statements of financial performance; and


(d) profit and loss accounts; and


(e) balance-sheets; and


(f) statements of financial position;

and also includes statements, reports and notes attached to, or intended to be read with, anything covered by any of the above paragraphs.

acquisition
has the meaning given by section 195-1 of the GST Act.

agent
includes:


(a) a person who, for and on behalf of a person out of Australia, has the management or control in Australia of the whole or a part of a business of the second-mentioned person; and


(b) a person declared by the Commissioner, by notice in writing served on the person, to be an agent or the sole agent of a person for the purposes of this Act.

annual transfer
has the meaning given by subsection 45E(4) .

applicable commencement date
, in relation to a petroleum project, means:


(a) unless paragraph (b) or (c) applies - 1 July 1986; or


(b) if the project is the Bass Strait project, or if the Bass Strait project is a pre-combination project in relation to the project - 1 July 1990; or


(c) if the project is the North West Shelf project - 1 July 2012.

applicable foreign currency
has the meaning given by section 58C .

apportionment percentage figure
has the meaning given by subsection 2C(2) .

approved form
has the meaning given by section 388-50 in Schedule 1 to the Taxation Administration Act 1953 .

Note:

Forms previously approved by the Commissioner under this Act continue in effect: see item 230 of Schedule 10 to the Tax Laws Amendment (2004 Measures No. 7) Act 2005 .

assessment
means the ascertainment of the amount of a person ' s taxable profit (or that a person has no taxable profit) in relation to a year of tax and a petroleum project, and of the tax payable on that amount (or that no tax is payable).

Australia
, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997 .

Australian law
has the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 .

basic company group
has the meaning given by section 2B .

Bass Strait exploration permit
means the exploration permit known as VIC/P1.

Bass Strait project
means the petroleum project referred to in subsection 19(1A) .

block
has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

certifying Minister
(Repealed by No 88 of 2009)

combined project
means a petroleum project to which subsection 19(2) applies.

Commissioner
means the Commissioner of Taxation.

company
means a body corporate that has a share capital.

condensate
means a mixture that includes pentane and hexane, where the pentane and hexane comprise more than 50% by weight of the mixture.

consolidated group
(Repealed by No 43 of 2019)

created
(Repealed by No 43 of 2019)

creditable purpose
has the meaning given by section 195-1 of the GST Act.

current apportionment percentage
has the meaning given by subsection 2C(1) .

decreasing adjustment
has the meaning given by section 195-1 of the GST Act.

Deputy Commissioner
means a Deputy Commissioner of Taxation.

designated company group
has the meaning given by section 2BA .

designated frontier area
means that block or those blocks that constitute both:


(a) an area or part of an area:


(i) specified in section 36A ; or

(ii) specified in an instrument made under subsection 36B(1) ; and


(b) an exploration permit area.

designated frontier expenditure
, in relation to a petroleum project and a financial year, means exploration expenditure that is actually incurred:


(a) by a person in that year where the eligible exploration or recovery area in relation to the project is a designated frontier area; and


(b) during the original period of the exploration permit concerned (before the permit is first renewed or ceases to be in force);

other than exploration expenditure that is incurred in evaluating or delineating a petroleum pool (within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 ) that has been discovered in a designated frontier area.

eligible production licence
(Repealed by No 18 of 2012)

eligible real expenditure
means exploration expenditure, general project expenditure, resource tax expenditure, starting base expenditure or closing-down expenditure.

employee amenities
means housing, health, educational, recreational, welfare or other similar facilities and services for, or facilities and services involved in the supply of meals to, employees or dependants of employees, not being facilities and services conducted for the purpose of profit-making.

excess closing-down expenditure
has the meaning given by paragraph 46(1)(a) .

excluded commodity
means a marketable petroleum commodity that:


(a) has been sold;


(b) after being produced, has been further processed or treated;


(c) has been moved away from the place of its production other than to a storage site adjacent to that place; or


(d) has been moved away from a storage site adjacent to the place of its production.

excluded fee
means an amount of a kind referred to in paragraph 113(1)(c), subsection 115(5), paragraph 118(1)(c), subsection 178(4) or paragraph 181(1)(c) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

exploration permit
means a petroleum exploration permit within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

exploration permit area
means a petroleum exploration permit area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

external petroleum
, in relation to a petroleum project, means petroleum, or constituents of petroleum, recovered from an area or areas other than the production licence area or production licence areas in relation to the project.

facilities
means land, buildings, plant, equipment and other facilities.

financial year
means any financial year that commenced or commences on or after 1 July 1979.

foreign currency
means a currency other than Australian currency.

future closing-down expenditure
has the meaning given by section 2D .

GDP factor
, in relation to a financial year, means the GDP factor for the financial year worked out in accordance with section 2A .

general interest charge
means the charge worked out under Part IIA of the Taxation Administration Act 1953 .

Greater Sunrise project
means a petroleum project for the recovery of petroleum from one or more of the Greater Sunrise unit reservoirs.

Greater Sunrise unit area
has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

Greater Sunrise unit reservoirs
has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

group company
has the meaning given by section 2B .

GST
has the meaning given by section 195-1 of the GST Act.

GST Act
means the A New Tax System (Goods and Services Tax) Act 1999 .

head company
, of a designated company group, has the meaning given by section 2BA .

holder of a registered interest
, in relation to a production licence, means a person holding an interest in the production licence, being an interest created by a dealing in relation to which an entry has been made under subsection 494(3) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

increasing adjustment
has the meaning given by section 195-1 of the GST Act.

ineligible project
, in relation to a financial year, means a petroleum project that is a pre-combination project by virtue of the issue of a project combination certificate during the financial year.

infrastructure licence
has the meaning given by section 7 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

input tax credit
has the meaning given by section 195-1 of the GST Act.

instalment of tax
means an instalment of tax payable under Division 2 of Part VIII.

instalment percentage
, in relation to an instalment period in a year of tax, means:


(a) in the case of the first instalment period in the year of tax - 25%;


(b) in the case of the second instalment period in the year of tax - 50%; and


(c) in the case of the third instalment period in the year of tax - 75%.

instalment period
, in relation to an instalment of tax in a year of tax, means the period commencing at the beginning of the year of tax and ending at the end of the month preceding that in which the instalment is due and payable.

instalment transfer
has the meaning given by subsection 45E(5) .

instalment transfer charge period
has the meaning given by subsection 98A(4) .

instalment transfer excess
has the meaning given by subsection 98A(1) .

instalment transfer interest charge
has the meaning given by subsection 98A(4) .

internal petroleum
, in relation to a petroleum project, means petroleum, or constituents of petroleum, recovered from the production licence area or production licence areas in relation to the project, where:


(a) the petroleum, or the constituents of petroleum, is, or is to be, recovered or processed:


(i) by a person entitled to derive assessable receipts in relation to the project; and

(ii) for or on behalf of another person who is entitled to derive assessable receipts in relation to the project; or


(b) the petroleum, or the constituents of petroleum, is, or is to be, sold:


(i) by a person entitled to derive assessable receipts in relation to the project; and

(ii) to another person who is entitled to derive assessable receipts in relation to the project.

lease derived production licence
means a production licence that is derived from a retention lease.

liable person
has the meaning given by subsection 98A(1) .

licensed property
, in relation to a petroleum project, has the meaning given by paragraph 2D(1)(b) .

liquefied petroleum gas
means a mixture that includes propane and butane, where the propane and butane comprise more than 50% by weight of the mixture.

long-term bond rate
means:


(a) in relation to the financial year commencing on 1 July 1979 - 0.1066; and


(b) in relation to the financial year commencing on 1 July 1980 - 0.1258; and


(c) in relation to the financial year commencing on 1 July 1981 - 0.1548; and


(d) in relation to the financial year commencing on 1 July 1982 - 0.1443; and


(e) in relation to the financial year commencing on 1 July 1983 - 0.1272; and


(f) in relation to the financial year commencing on 1 July 1984 - 0.1341; and


(g) in relation to the financial year commencing on 1 July 1985 - 0.1365; and


(h) in relation to any subsequent financial year that is earlier than the financial year commencing on 1 July 2012 - the average, expressed as a decimal fraction, of the assessed secondary market yields in respect of 10-year non-rebate Treasury bonds published by the Reserve Bank during that year or, if no assessed secondary market yield in respect of bonds of that kind was published by the Reserve Bank during the year, the decimal fraction determined by the Treasurer by notice in writing published in the Gazette for the purposes of this definition in relation to the financial year; and


(i) in relation to the financial year commencing on 1 July 2012 and any subsequent financial year - has the same meaning as in subsection 995-1(1) of the Income Tax Assessment Act 1997 ; and


(j) in relation to a period that is not a financial year - has the same meaning as in subsection 995-1(1) of the Income Tax Assessment Act 1997 .

marketable petroleum commodity
has the meaning given by section 2E .

market value
, of a commodity, at a particular time, is its market value reduced by an amount equal to the amount of the input tax credit (if any) to which a person would be entitled if:


(a) the person had acquired the commodity at that time; and


(b) the acquisition had been solely for a creditable purpose.

MEC group
(Repealed by No 43 of 2019)

member
(Repealed by No 43 of 2019)

North West Shelf exploration permits
means the exploration permits known as WA-1-P and WA-28-P.

North West Shelf project
means the petroleum project referred to in subsection 19(1B).

notional tax amount
has the meaning given by section 97 .

offence against this Act
includes an offence against:


(a) the Crimes Act 1914 ; or


(b) the Taxation Administration Act 1953 ;

relating to this Act.

officer
means a person appointed or engaged under the Public Service Act 1999 .

oil shale
means any shale or other rock (other than coal) from which a fluid consisting of or including hydrocarbons may be extracted or produced.

onshore area
(Repealed by No 43 of 2019)

onshore petroleum project
(Repealed by No 43 of 2019)

overall company group
has the meaning given by section 2B .

permit derived production licence
means a production licence that is derived from an exploration permit.

petroleum
means:


(a) petroleum within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 ; or


(b) oil shale.

petroleum project
or project means a petroleum project within the meaning of subsection 19(1) or (2), and includes the extended meaning given by subsection 19(2B) or (2C).

pipeline licence
has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

post-30 June 2008 petroleum project
means a petroleum project, where the production licence, or each production licence, in relation to the project came into force after 30 June 2008, and includes the North-West shelf project.

pre-1 July 2008 petroleum project
means a petroleum project other than a post-30 June 2008 petroleum project.

pre-combination project
, in relation to a combined project, means:


(a) any petroleum project that, immediately before the project combination certificate that gave rise to the combined project came into force, was a petroleum project in relation to any one or more of the production licences specified in the certificate; and


(b) any petroleum project that is a pre-combination project in relation to another petroleum project that is a pre-combination project in relation to the combined project under paragraph (a) or this paragraph.

pre-licence area
, in relation to a production licence, means:


(a) if the production licence was derived from an exploration permit - the exploration permit area of the exploration permit; or


(b) if the production licence was derived from a retention lease - either:


(i) the retention lease area of the retention lease; or

(ii) the exploration permit area of the exploration permit to which the retention lease is related.

processing of external petroleum
, in relation to a petroleum project, includes the stabilisation, transportation, storage or recovery of external petroleum in relation to the project.

processing of internal petroleum
, in relation to a petroleum project, includes the stabilisation, transportation, storage or recovery of internal petroleum in relation to the project.

production licence
means:


(a) a petroleum production licence within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 ; or


(b) a lawful authority or right (however described) to undertake activities in the Western Greater Sunrise area for the recovery of petroleum from one or more of the Greater Sunrise unit reservoirs.


(c) (Repealed by No 43 of 2019)

production licence area
means a petroleum production licence area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and, in relation to a Greater Sunrise project, includes the Western Greater Sunrise area.

production licence notice
, in relation to a petroleum project, means a notice issued under subsection 258(7) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 in relation to the project.

project combination certificate
means a certificate under section 20 .

provisional head company
(Repealed by No 43 of 2019)

registered holder
has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

re-inject
, in relation to a marketable petroleum commodity produced from petroleum recovered from the eligible exploration or recovery area in relation to a petroleum project, means return the commodity to a natural reservoir in:


(a) where the return takes place before any production licence in relation to the project comes into force - any area from which the recovery of petroleum would, at the time of the return, constitute recovery of petroleum from the eligible exploration or recovery area in relation to the project; and


(b) in any other case - the production licence area or any of the production licence areas in relation to the project.

related charge
means:


(a) shortfall interest charge, or general interest charge, in relation to tax; or


(b) instalment transfer interest charge in relation to an instalment of tax.

Resources Department
means the Department that:


(a) deals with matters arising under section 1 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 ; and


(b) is administered by the Resources Minister.

Resources Minister
means the Minister administering section 1 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

retention lease
means a petroleum retention lease within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

retention lease area
means a petroleum retention lease area within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

sales gas
means a substance:


(a) which is in a gaseous state when at the temperature of 15 ° C and a pressure of one atmosphere; and


(b) which consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non-hydrocarbons; and


(c) the principal constituent of which is methane; and


(d) which:


(i) if it is to be used as a feedstock for conversion to another product - has been processed so that it is suitable for that use; or

(ii) in any other case - has been processed so that it is suitable for direct consumption as energy.

Second Commissioner
means a Second Commissioner of Taxation.

services
means water, light, power, access, communications or other services.

shortfall interest charge
means the charge worked out under Division 280 in Schedule 1 to the Taxation Administration Act 1953 .

starting base amount
, in relation to a person ' s interest in a petroleum project, means the amount (if any) assessed as the starting base amount in relation to the person ' s interest under clause 23 of Schedule 2 as in force before 1 July 2019.

starting base asset
(Repealed by No 43 of 2019)

subsidiary
has the meaning given by section 2B .

subsidiary member
(Repealed by No 43 of 2019)

tax
means tax imposed by any of the following:


(a) the Petroleum Resource Rent Tax (Imposition - General) Act 2012 ;


(b) the Petroleum Resource Rent Tax (Imposition - Customs) Act 2012 ;


(c) the Petroleum Resource Rent Tax (Imposition - Excise) Act 2012 .

this Act
includes:


(a) the regulations; and


(b) Part IVC of the Taxation Administration Act 1953 , insofar as that Part relates to this Act.

Torres Strait Islander
has the meaning given by subsection 4(1) of the Aboriginal and Torres Strait Islander Act 2005 .

transferable exploration expenditure
in relation to a person and a financial year, means expenditure that is, according to Schedule 1 , transferable by the person in relation to the financial year.

Note 1:

The following provisions of Schedule 1 provide for expenditure to be transferable:

  • paragraph 7(b)
  • paragraph 8(5)(c)
  • paragraph 11(b)
  • paragraph 12(4)(c)
  • subclause 18(1)
  • subclause 18(2)
  • paragraph 18(3)(e) .
  • Note 2:

    Special rules apply in relation to the transfer of Greater Sunrise exploration expenditure: see Part 1A of Schedule 1 .

    Tribunal
    means the Administrative Appeals Tribunal.

    trustee
    includes:


    (a) a person appointed or constituted trustee by act of parties, by order or declaration of a court, or by operation of law; or


    (b) an executor, administrator or other personal representative of a deceased person; or


    (c) a guardian or committee; or


    (d) a receiver or receiver and manager; or


    (e) a liquidator of a company; or


    (ea) an administrator, within the meaning of the Corporations Act 2001 , of a company; or


    (eb) an administrator of a deed of company arrangement executed by a company under Part 5.3A of that Act; or


    (f) a person:


    (i) having or taking upon himself or herself the administration or control of any real or personal property affected by any express or implied trust;

    (ii) acting in any fiduciary capacity; or

    (iii) having the possession, control or management of any real or personal property of a person under any legal or other disability.

    unincorporated association
    does not include a joint venture.

    uplifted frontier expenditure
    has the meaning given by section 36C .

    value
    (Repealed by No 43 of 2019)

    Western Greater Sunrise area
    has the same meaning as in the Offshore Petroleum and Greenhouse Gas Storage Act 2006 .

    year of tax
    , in relation to a person in relation to a petroleum project, means a financial year commencing on or after the applicable commencement date, being:


    (a) except in a case to which paragraph (b) applies - the first financial year in which assessable petroleum receipts are derived by the person in relation to the project or a subsequent financial year; or


    (b) if the project is a combined project and the person has, in a financial year before the financial year in which the project combination certificate in relation to the project comes into force, derived assessable petroleum receipts in relation to any of the pre-combination projects in relation to the combined project - the financial year in which the project combination certificate comes into force or a subsequent financial year.




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