Petroleum Resource Rent Tax Assessment Act 1987
Sections 2 , 35A , 35B , 45A , 45B and 45D
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View history noteSch 1 heading substituted by No 18 of 2012, s 3 and Sch 4 item 46, effective 1 July 2012. The heading formerly read:
SCHEDULE - PROVISIONS RELATING TO INCURRING AND TRANSFER OF EXPLORATION EXPENDITURE ON OR AFTER 1 JULY 1990
For the purposes of this Part, if:
(a) the person incurred exploration expenditure, or is taken to have incurred uplifted frontier expenditure, in relation to the notional project in a financial year; and
(b) the total amount of assessable receipts derived by the person in relation to the notional project in the financial year equals or exceeds the total amount of deductible expenditure actually incurred by the person in relation to the notional project in the financial year;
the total of the amounts of exploration expenditure (other than designated frontier expenditure), and uplifted frontier expenditure, is taken to be non-transferable expenditure incurred by the person in relation to the notional project.
S 15(1) amended by No 41 of 2005, s 3 and Sch 5 items 9 and 10, by inserting " , or is taken to have incurred uplifted frontier expenditure, " after " incurred exploration expenditure " in para (a) and substituting " the total of the amounts of exploration expenditure (other than designated frontier expenditure), and uplifted frontier expenditure, is taken to be non-transferable expenditure " for " all of the exploration expenditure is non-transferable expenditure " , applicable in respect of any exploration expenditure incurred (whether before or after 1 April 2005) where the eligible exploration or recovery area is a designated frontier area.
15(2)
For the purposes of this Part, if:
(a) the total amount of deductible expenditure actually incurred by the person in relation to the notional project in a financial year exceeds the total amount of assessable receipts derived by the person in relation to the notional project and the financial year; and
(b) the total of:
(i) any amounts of exploration expenditure (other than designated frontier expenditure) actually incurred by the person; and
in relation to the notional project in the financial year exceeds the excess referred to in paragraph (a) by an amount (the non-transferable amount );
(ii) any amounts of uplifted frontier expenditure taken to be incurred by the person in respect of designated frontier expenditure actually incurred by the person;
so much of the expenditure as equals the non-transferable amount is taken to be non-transferable expenditure incurred by the person in relation to the notional project.
S 15(2) amended by No 41 of 2005, s 3 and Sch 5 items 11 and 12, by substituting para (b) and substituting " so much of the expenditure as equals the non-transferable amount is taken to be non-transferable expenditure " for " so much of the exploration expenditure as equals the non-transferable amount is non-transferable expenditure " , applicable in respect of any exploration expenditure incurred (whether before or after 1 April 2005) where the eligible exploration or recovery area is a designated frontier area. Para (b) formerly read:
(b) the total amount of exploration expenditure actually incurred by the person in relation to the notional project in the financial year exceeds the excess referred to in paragraph (a) by an amount (in this clause called the non-transferable amount );
15(3)
If:
(a) subclause (2) applies; and
(b) the oldest amount of any exploration expenditure (other than designated frontier expenditure) incurred, or any uplifted frontier expenditure taken to be incurred, by the person in the financial year equals or exceeds the non-transferable amount;
the non-transferable expenditure consists of so much of that oldest amount as equals the non-transferable amount.
S 15(3) amended by No 41 of 2005, s 3 and Sch 5 item 13, by substituting " any exploration expenditure (other than designated frontier expenditure) incurred, or any uplifted frontier expenditure taken to be incurred, " for " the exploration expenditure incurred " in para (b), applicable in respect of any exploration expenditure incurred (whether before or after 1 April 2005) where the eligible exploration or recovery area is a designated frontier area.
15(4)
If:
(a) subclause (2) applies; but
(b) subclause (3) does not apply;
the following provisions have effect:
(c) add amounts in accordance with the following rules:
(i) start with the oldest amount of any exploration expenditure (other than designated frontier expenditure) incurred, or any uplifted frontier expenditure taken to be incurred, by the person in the financial year;
(ii) add to that, in order starting with the next oldest amount, each of the other amounts incurred, or taken to be incurred, by the person in the financial year;
(iii) if adding an amount of expenditure would make the total exceed the non-transferable amount, add only so much of the amount as makes the total equal the non-transferable amount and do not add any later amount of expenditure;
(d) the non-transferable expenditure consists of the amounts of expenditure added together in accordance with paragraph (c).
S 15(4) amended by No 41 of 2005, s 3 and Sch 5 items 14 and 15, by substituting para (c) and substituting " paragraph (c) " for " subparagraphs (c)(i) and (ii) " in para (d), applicable in respect of any exploration expenditure incurred (whether before or after 1 April 2005) where the eligible exploration or recovery area is a designated frontier area. Para (c) formerly read:
(c) add amounts in accordance with the following rules:
(i) start with the oldest amount of the exploration expenditure incurred by the person in the financial year and add to that, in order starting with the next oldest amount, each of the other amounts of the exploration expenditure incurred by the person in the financial year;
(ii) if adding an amount of expenditure would make the total exceed the non-transferable amount, add only so much of the amount as makes the total equal the non-transferable amount and do not add any later incurred amount of expenditure;
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