Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 3 - Deductible expenditure  

SECTION 44   EXCLUDED EXPENDITURE  

44(1)    
For the purposes of this Act, a reference to excluded expenditure is a reference to:

(a)    payments of principal or interest on a loan or other borrowing costs; or

(b)    interest components of hire-purchase payments; or

(c)    payments of dividends or the cost of issuing shares; or

(d)    the repayment of equity capital; or

(e)    payments of a kind known as private override royalty payments; or

(f)    payments to acquire, or to acquire an interest in, an exploration permit, retention lease, production licence, pipeline licence or access authority, otherwise than in respect of the grant of the permit, lease, licence or authority; or

(g)    payments to acquire interests in petroleum project profits, receipts or expenditures; or

(ga)    

payments of levy imposed by the Offshore Petroleum (Laminaria and Corallina Decommissioning Cost Recovery Levy) Act 2022 ; or

(h)    payments of tax under the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997 ; or

(i)    payments of GST under the GST Act; or

(ia) (Repealed by No 83 of 2014)

(j)    payments of administrative or accounting costs, or of wages, salary or other work costs, incurred indirectly in carrying on or providing operations, facilities or other things of a kind referred to in sections 37 , 38 and 39 ; or

(k)    payments in respect of land or buildings for use in connection with administrative or accounting activities in respect of the carrying on or provision of other operations, facilities or things of a kind referred to in sections 37 , 38 and 39 , not being land or buildings located at or adjacent to the site or sites at which those other operations, facilities or things are carried on or provided.

44(2)    

For the purposes of paragraph (1)(e) , a private override royalty payment does not include a payment to the extent:

(a)    it is by way of compensation for carrying on or providing, in an area the operations, facilities or other things comprising a petroleum project; and

(b)    it is paid:

(i) to a native title holder (within the meaning of the Native Title Act 1993 ) whose approved determination of native title (within the meaning of that Act) relates to that area; or

(ii) to a registered native title claimant (within the meaning of the Native Title Act 1993 ) whose claimant application (within the meaning of that Act) relates to that area; or

(iii) to a person who holds a right that relates to that area and arises under another Australian law dealing with the rights of Aboriginal persons or Torres Strait Islanders in relation to land or waters.