Petroleum Resource Rent Tax Assessment Act 1987

S 35D repealed by No 43 of 2019, s 3 and Sch 2 item 44, effective 1 July 2019. For application, transitional and savings provisions, see note under s 31AA . S 35D formerly read:

SECTION 35D ACQUIRED EXPLORATION EXPENDITURE  
35D(1)
For the purposes of this Act, a reference to the acquired exploration expenditure incurred by a person in a financial year in relation to a petroleum project (not being a combined project) is a reference to:

(a) in relation to the financial year commencing on 1 July 2009 - the person ' s acquired exploration expenditure amount in relation to the project, under clause 19 of Schedule 2 ; or

(b) in relation to any subsequent financial year - any amount that is taken by subsection (3) or (4) or Division 5 to be acquired exploration expenditure incurred by the person in relation to the project in the financial year.

35D(2)
For the purposes of this Act, a reference to the acquired exploration expenditure incurred by a person in a financial year in relation to a combined project is a reference to:

(a) any amount that is taken by subsection (3) or (4) or Division 5 to be acquired exploration expenditure incurred by the person in relation to the project in the financial year; or

(b) if the project combination certificate in relation to the project came into force in the financial year:

(i) any amount of acquired exploration expenditure; or

(ii) any amount that is taken by subsection (3) or (4) or Division 5 to be acquired exploration expenditure;

incurred by the person in relation to the pre-combination projects in relation to the project in the financial year.

35D(3)
For the purposes of subsection (1) or (2), if:

(a) the sum of:

(i) the class 1 augmented bond rate general expenditure; and

(ii) the class 1 augmented bond rate exploration expenditure; and

(iii) the class 2 augmented bond rate general expenditure; and

(iv) the class 1 GDP factor expenditure; and

(v) the class 2 augmented bond rate exploration expenditure; and

(vi) the class 2 GDP factor expenditure; and

(vii) the resource tax expenditure; and

(viii) the acquired exploration expenditure;

incurred by a person in a financial year (the assessable year ) in relation to the petroleum project exceeds the assessable receipts derived by the person in the assessable year in relation to the project; and

(b) the next financial year starts not later than 5 years after 2 May 2010;

the person is taken to incur, in relation to the project and on the first day of the next financial year, an amount of acquired exploration expenditure worked out in accordance with the formula:

Available excess × Augmented bond rate

where:

augmented bond rate
means the long term bond rate in relation to the assessable year plus 1.15.

available excess
means so much of the excess as does not exceed the acquired exploration expenditure incurred in the assessable year.

35D(4)
For the purposes of subsection (1) or (2), if:

(a) the sum of:

(i) the class 1 augmented bond rate general expenditure; and

(ii) the class 1 augmented bond rate exploration expenditure; and

(iii) the class 2 augmented bond rate general expenditure; and

(iv) the class 1 GDP factor expenditure; and

(v) the class 2 augmented bond rate exploration expenditure; and

(vi) the class 2 GDP factor expenditure; and

(vii) the resource tax expenditure; and

(viii) the acquired exploration expenditure;

incurred by a person in a financial year (the assessable year ) in relation to the petroleum project exceeds the assessable receipts derived by the person in the assessable year in relation to the project; and

(b) the next financial year starts later than 5 years after 2 May 2010;

the person is taken to incur, in relation to the project and on the first day of the next financial year, an amount of acquired exploration expenditure worked out in accordance with the formula:

Available excess × Augmented bond rate

where:

augmented bond rate
means the long term bond rate in relation to the assessable year plus 1.05.

available excess
means so much of the excess as does not exceed the acquired exploration expenditure incurred in the assessable year.

S 35D inserted by No 18 of 2012, s 3 and Sch 4 item 10, effective 1 July 2012.