Petroleum Resource Rent Tax Assessment Regulations 2024

PART 4 - THE RESIDUAL PRICING METHOD  

Division 3 - Allocating capital costs to years of tax  

SECTION 43   CAPITAL COSTS INCURRED FOR A UNIT OF PROPERTY COMPLETED OVER SEVERAL YEARS  

43(1)    
This section applies to an included capital cost for the taxpayer if the cost is incurred in relation to a unit of property:

(a)    that is constructed over a period of time; and

(b)    for which the last capital cost is incurred in a later financial year (the final cost year ).

43(2)    
For the purposes of step 8 of the residual pricing method, the included capital cost:

(a)    is augmented for the number of calendar years between the start date for the included capital cost and 1 January in the final cost year; and

(b)    is taken to be incurred in the final cost year.

Note 1:

The start date for the included capital cost may have been affected by subsection 41(2) .

Note 2:

The steps of the method work sequentially. So, (assuming this subsection applies to the cost) the next applicable step or provision that refers to the cost will be referring to:

  • (a) the cost as augmented under this subsection; and
  • (b) a start date for the cost of 1 January in the final cost year.


    • 43(3)    
    This section does not apply to an included capital cost that is included under subsection 35(10) .

     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.