Tax Laws Amendment (2004 Measures No. 7) Act 2005 (41 of 2005)

Schedule 5   Petroleum exploration incentives

Petroleum Resource Rent Tax Assessment Act 1987

4   After section 36

Insert:

36A Designated frontier areas for 2004

For the purposes of the definition of designated frontier area , the following areas are specified:

(a) Area T04-5, as first gazetted in the Tasmanian Government Gazette on 5 May 2004 under subsection 20(1) of the Petroleum (Submerged Lands) Act 1967;

(b) Areas W04-2, W04-4, W04-15 and W04-16, as first gazetted in the Western Australia Government Gazette on 30 March 2004 under subsection 20(1) of the Petroleum (Submerged Lands) Act 1967;

(c) Area NT04-3, as first gazetted in the Northern Territory Government Gazette on 14 April 2004 under subsection 20(1) of the Petroleum (Submerged Lands) Act 1967.

Note: An amount of exploration expenditure incurred in respect of an area that is specified under this section might be increased by 150% (before the GDP factor or the augmented bond rate is applied to the amount under the Schedule): see section 36C.

36B Designated frontier areas for 2005 to 2008

(1) For the purposes of the definition of designated frontier area , the Minister administering the Petroleum (Submerged Lands) Act 1967 may designate, in writing, up to (and including) 20% of potential exploration permit areas as frontier areas.

Note: An amount of exploration expenditure incurred in respect of an area that is specified under this section might be increased by 150% (before the GDP factor or the augmented bond rate is applied to the amount under the Schedule): see section 36C.

(2) The Minister must not specify new areas for a calendar year after 2008.

(3) The Minister must publish an instrument made under subsection (1) in the Gazette.

(4) An instrument made under subsection (1) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003.

(5) The Minister may, by signed instrument, delegate his or her power under subsection (1) to an SES employee or an acting SES employee in the Minister's Department.

Note: The expressions SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901.

(6) In this section:

potential exploration permit area means an area or areas constituted by a block or blocks in respect of which applications for exploration permits have been invited, but not yet granted, under Division 2 of Part III of the Petroleum (Submerged Lands) Act 1967.

36C Uplifted frontier expenditure

For the purposes of this Act, the amount of uplifted frontier expenditure that a person is taken to have incurred in a financial year in relation to a petroleum project is worked out as follows:

Designated frontier expenditure actually incurred by the person in the financial year in relation to the petroleum project * 150%