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

Schedule 5   Petroleum exploration incentives

Petroleum Resource Rent Tax Assessment Act 1987

8   Clause 1 of the Schedule

Insert:

incurred exploration expenditure amount , in relation to a petroleum project that is a combined project and in relation to a financial year, means the sum of the following:

(a) any amounts of:

(i) exploration expenditure (other than designated frontier expenditure) actually incurred by the person; and

(ii) uplifted frontier expenditure that the person is taken by section 36C to have incurred;

in the financial year in relation to the project (not being amounts incurred before the project combination certificate in relation to the project came into force);

(b) any amounts of expenditure that the person is taken by subparagraph 48(1)(a)(ia) or paragraph 48A(5)(c) to have incurred in the financial year in relation to the project;

(c) if the project combination certificate came into force during the financial year:

(i) any amounts of exploration expenditure (other than designated frontier expenditure) actually incurred by the person in the financial year; and

(ii) any amounts of uplifted frontier expenditure that the person is taken by section 36C to have incurred in the financial year; and

(iii) any amounts of exploration expenditure that the person is taken by section 48 or 48A to have incurred in the financial year;

in relation to the pre-combination projects.

Note: The effect of subsections 35A(2), 35B(2) and 45D(3) must be taken into account when working out an incurred exploration expenditure amount.