Tax Laws Amendment (2009 Measures No. 3) Act 2009 (47 of 2009)

Schedule 3   Petroleum resource rent tax

Part 1   Functional currency

Petroleum Resource Rent Tax Assessment Act 1987

18   Subsection 46(1)

Repeal the subsection, substitute:

(1) If, in relation to a petroleum project, the sum of any closing-down expenditure and any other deductible expenditure incurred by a person in a year of tax exceeds the assessable receipts derived by the person in the year of tax:

(a) so much of the excess as does not exceed the amount of the closing-down expenditure is the person's excess closing-down expenditure for the year of tax; and

(b) the person is entitled to a credit of the lesser of the following amounts:

(i) an amount equal to 40% of the excess closing-down expenditure for the year of tax;

(ii) the total amount of any tax in respect of the project (including in the case of a combined project any pre-combination project in relation to the project) paid or payable by the person in relation to previous years of tax, reduced by the total amount of any credits allowed or allowable to the person under this section in relation to the project in relation to any previous years of tax.