Treasury Laws Amendment (2019 Petroleum Resource Rent Tax Reforms No. 1) Act 2019 (43 of 2019)

Schedule 1   Reform of the petroleum resource rent tax

Part 2   Standard uplift expenditure

Petroleum Resource Rent Tax Assessment Act 1987

44   Paragraphs 8(3)(a) and (b) of Schedule 1

Repeal the paragraphs, substitute:

(a) if the standard uplift expenditure year is the financial year immediately before the assessable year - multiply the incurred exploration expenditure amount in relation to the standard uplift expenditure year by:

(i) if the standard uplift expenditure year starts before 1 July 2019 - the long-term bond rate in relation to the standard uplift expenditure year plus 1.15; or

(ii) otherwise - the long-term bond rate in relation to the standard uplift expenditure year plus 1.05;

(b) if the standard uplift expenditure year is an earlier financial year - work out, in relation to the standard uplift expenditure year and each later financial year ending before the assessable year, an amount in accordance with the formula:

where:

exploration expenditure amount means:

(i) in making the calculation in relation to the standard uplift expenditure year - the incurred exploration expenditure amount in relation to the standard uplift expenditure year; or

(ii) in making the calculation in relation to one of the later financial years - the amount calculated under this paragraph in relation to the immediately preceding financial year for the purpose of working out the available exploration expenditure amount for the standard uplift expenditure year.

uplift rate , for the financial year in relation to which the calculation is being made (the calculation year ), means:

(i) if both the standard uplift expenditure year and the calculation year start before 1 July 2019 - the long-term bond rate in relation to the calculation year plus 1.15; or

(ii) if the standard uplift expenditure year starts before 1 July 2019 and the calculation year starts on or after 1 July 2019 - the long-term bond rate in relation to the calculation year plus 1.05; or

(iii) if the standard uplift expenditure year starts on or after 1 July 2019 and the calculation year is 10 or more years after the standard uplift expenditure year - the GDP factor for the calculation year; or

(iv) in any other case - the long-term bond rate in relation to the calculation year plus 1.05;


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).