Question 15 – Has the entity elected to be bound by the functional currency rules?
At question 15, indicate whether a choice to be bound by the functional currency rules was in place for the year of tax.
- If the entity hasn't elected to be bound by the functional currency rules for the year of tax, place an X in the 'No' box at question 15 and go to question 18.
- If the entity has elected to be bound by the functional currency rules for the year of tax, place an X in the 'Yes' box at question 15.
Question 16 – What is the functional currency translation rate?
At question 16, provide the exchange rate (to 4 significant figures) used to translate amounts from the applicable functional currency into Australian dollars.
The translation rate is the amount by which the functional currency amount is divided to reflect an equivalent amount of Australian dollars – that is, the number of non-Australian dollar currency units that equal one Australian dollar (to 4 significant figures).
Question 17 – State the applicable functional currency code
At question 17, provide the applicable functional currency code, see Guide to functional currency rules.
Question 18 – Expenses payable in relation to sales
At question 18, label 18A, provide the total expenses incurred in relation to the sales for which the entity derived the assessable receipts reported at question 19.
Question 19 – Assessable receipts derived
At question 19, provide details of all assessable receipts amounts derived during the year of tax. Insert:
- at label 19B, the total amount of assessable petroleum receipts
- at label 19C, the total amount of assessable tolling receipts
- at label 19D, the total amount of assessable exploration recovery receipts
- at label 19E, the total amount of assessable property receipts
- at label 19F, the total amount of assessable miscellaneous compensation receipts
- at label 19G, the total amount of assessable employee amenities receipts
- at label 19H, the total amount of assessable incidental production receipts
- at label 19I, the project’s total assessable receipts (19B + 19C + 19D + 19E + 19F + 19G + 19H).
Generally, the assessable receipts relating to sales (provided at question 19) are calculated as consideration received less direct expenses incurred in relation to the sale (provided at question 18). Find out more about PRRT assessable receipts.
Question 20 – Deductible expenditure incurred
Provide details of deductible expenditure amounts incurred during the year of tax. Insert:
- at label 20J, the total amount of class 1 augmented bond rate general expenditure
- at label 20K, the total amount of class 1 augmented bond rate exploration expenditure
- at label 20L, the total amount of class 2 uplifted general expenditure
- at label 20M, the total amount of class 1 GDP factor expenditure
- at label 20N, the total amount of class 2 uplifted exploration expenditure
- at label 20O, the total amount of class 2 GDP factor expenditure
- at label 20P, the total amount of resource tax expenditure
- at label 20R, the total amount of starting base expenditure
- at label 20Z, the total amount of augmented denied deductible expenditure
- at label 20S, the total amount of closing-down expenditure
- at label 20T, the project's total deductible expenditure (20J + 20K + 20L + 20M + 20N + 20O + 20P + 20R + 20Z + 20S).
Resource tax expenditure and starting base expenditure are applicable to the North West Shelf project only.
The augmented deductible expenditure should also be included at the appropriate labels in question 20. Find out more about PRRT deductible expenditure.
Question 21 – Exploration expenditure amounts transferred to this project
To transfer amounts of exploration expenditure, you must complete a Notification of transfer of petroleum resource rent tax (PRRT) exploration expenditure (NAT 9849a). You can lodge the notification of transfer of PRRT exploration expenditure with the PRRT return. This will ensure prompt processing of the return.
Provide details of any exploration expenditure transferred from other projects during the year of tax, as follows:
- at label 21U, the total of the amounts of exploration expenditure transferred to the petroleum project from other projects of the entity
- at label 21V, the total of the amounts of exploration expenditure transferred to the petroleum project from projects of group companies
- at label 21W, the total amount of exploration expenditure transferred to the petroleum project (21U + 21V).
Provide a 0 (zero) if no amounts have been transferred to the petroleum project for the year of tax.
Label 21W will be the sum of the amounts of all label Bs from all completed notifications of transfer of PRRT exploration expenditure, and any attachments to the notices.
Don't use any symbols, such as + or −, at question 21.
Provide the total amounts of exploration expenditure the entity is transferring for the year of tax. This amount can differ from any amounts previously indicated on an instalment statement.
Question 22 – Has an instalment transfer excess arisen in relation to any instalment period during the year of tax?
At question 22, place an X in the appropriate box to indicate whether an instalment transfer excess has arisen for this petroleum project for any instalment period during the year of tax.
If you answered 'Yes' to question 22, an instalment transfer interest charge may be imposed. Complete and lodge a Notification of petroleum resource rent tax (PRRT) instalment transfer interest charge (NAT 16121) with this PRRT return.
Question 23 – Taxable profit and undeducted expenditure
If the entity is not subject to tax under the deductions cap in this year of tax
If you have placed an X in the 'No' box at question 10A, indicating that the entity isn't subject to tax under the deductions cap in this year of tax, provide a 0 (zero) at label 23C and complete label 23A as follows.
Calculate the entity’s taxable profit at label 23A by subtracting the total deductible expenditure and total amount transferred from total assessable receipts (19I − 20T − 21W). If the result is a:
- positive amount, provide the amount at label 23A and provide a 0 (zero) at label 23B.
- negative amount or 0 (zero), provide a 0 (zero) at label 23A and complete label 23B according to the instructions below.
Calculate the entity's undeducted expenditure at label 23B by subtracting the entity’s total assessable receipts from its total deductible expenditure (20T − 19I). If the result is a:
- positive amount, provide the amount at label 23B.
- negative amount or 0 (zero), provide a 0 (zero) at label 23B.
If the entity is subject to tax under the deductions cap in this year of tax
If you have placed an X in the 'Yes' box at question 10A, indicating that the entity is subject to tax under the deductions cap in this year of tax, provide a 0 (zero) at label 23A and complete label 23C as follows.
Calculate the entity's taxable profit deductions cap at label 23C by multiplying the total assessable receipts by 10% (19I × 10%). If the result is a:
- positive amount, provide the amount at label 23C.
- 0 (zero), provide a 0 (zero) at label 23C.
Next, calculate the entity's undeducted expenditure at label 23B by subtracting the entity’s total assessable receipts from its total deductible expenditure (20T − 19I). If the result is a:
- positive amount, provide the amount at label 23B.
- negative amount or 0 (zero), provide a 0 (zero) at label 23B.
Question 24 – Is the entity claiming a tax credit relating to closing-down expenditure?
At question 24, place an X in the appropriate box to indicate whether the entity is claiming a tax credit relating to closing-down expenditure.
A credit for closing-down expenditure can only be claimed if there is an amount of closing-down expenditure at label 20S and an amount of undeducted expenditure at label 23B.
If you answer Yes at question 24, provide:
- at label 24C, the total PRRT paid by the entity for this petroleum project in all previous years
- at label 24D, the total credits previously claimed (if any) in all previous years.
- at label 24E, the excess credit amount – that is, the total PRRT paid less any credits previously claimed (24C − 24D)
- at label 24F, the total amount of undeducted closing-down expenditure from label 23B or 20S, whichever is less
- at label 24G, the excess credit amount – that is, the total amount of undeducted closing-down expenditure multiplied by 40% (24F × 0.4)
- at label 24H, the tax credit claimed – that is, the amount showing at label 24E or 24G, whichever is less.
Question 25 – Tax payable
At question 25, label I, provide the tax payable for the year of tax. If the entity was:
- not subject tax under the deductions cap in this year of tax and you have provided a 0 (zero) at label 23C, this will be the taxable profit at label 23A multiplied by 40% (23A × 40%)
- subject to tax under the deductions cap in this year of tax and you have provided a 0 (zero) at label 23A, this will be the taxable profit deductions cap at label 23C multiplied by 40% (23C × 40%)
If the taxable profit at label 23A and label 23C are both 0 (zero), provide a 0 (zero) at label 25I.
Provide the instalment amount paid and the date of the payment for the instalment periods ending:
- 30 September (label 25J)
- 31 December (label 25K), and
- 31 March (label 25L).
At label 25M, provide the entity's credit for the instalments paid during the year of tax (25J + 25K + 25L).
At label 25N, provide any credit the entity has claimed for closing-down expenditure at label 24H.
Question 26 – Balance due/refundable
Calculate the entity’s balance due or refundable and provide:
- the balance due at label 26O, or
- the balance refundable at label 26P.
If the entity's tax payable less credit for instalments paid (25I − 25M) is:
- a positive amount, this is the entity's balance due. Provide this amount at label 26O, leave label 26P blank and go to section D
- a negative amount or a 0 (zero), provide a 0 (zero) at label 26O and complete label 26P.
If the entity's tax payable, less credit for instalments paid, less credit for closing-down expenditure (25I − 25M − 25N) is:
- a negative amount, this is the entity's balance refundable (or that will be offset against any other tax debt the entity has). Provide this amount at label 26P
- a 0 (zero), provide a 0 (zero) at label 26P.