Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 2 - Assessable receipts  

SECTION 29A   ASSESSABLE INCIDENTAL PRODUCTION RECEIPTS  

29A(1)    

For the purposes of this Act, a reference to assessable incidental production receipts derived by a person in relation to a petroleum project is a reference to the consideration receivable, less the amount mentioned in subsection (2), by the person in relation to the sale of a product, or the provision of a service relating to carbon capture and storage, if:

(a) it has been recovered, extracted, provided or produced in carrying on operations, facilities or other things of a kind mentioned in section 37 , 38 or 39 in relation to the project; and

(b) it is not petroleum or a marketable petroleum commodity; and

(c) eligible real expenditure in relation to the project (including, in the case of a combined project, any pre-combination project in relation to the project) was incurred by the person in relation to those operations, facilities, or other things.

Example:

Excess electricity that is produced as part of the petroleum project is sold.

29A(2)    
The amount is the sum of any expenditure (whether of a capital or revenue nature) incurred by the person to the extent that:

(a) it is incurred in deriving assessable incidental production receipts in relation to the petroleum project; and

(b) it is not eligible real expenditure in relation to the petroleum project.