Petroleum Resource Rent Tax Assessment Act 1987

PART V - LIABILITY TO TAXATION  

Division 3 - Deductible expenditure  

SECTION 35   CLASS 1 GDP FACTOR EXPENDITURE  

35(1)    

For the purposes of this Act, a reference to the class 1 GDP factor expenditure incurred by a person in a financial year in relation to a petroleum project (not being a combined project, the Bass Strait project or the North West Shelf project) is a reference to the sum of:

(a) any amount of class 1 GDP factor expenditure actually incurred by the person in relation to the project in the financial year, being expenditure incurred more than 5 years before the earlier of the following:

(i) the day specified in the production licence notice in relation to the project;

(ii) the day the production licence was issued in relation to the project; and

(b) any amount that is taken by subsection (3), subsection 36(1) or Division 5 to be class 1 GDP factor expenditure incurred by the person in relation to the project in the financial year.

35(2)    
For the purposes of this Act, a reference to the class 1 GDP factor expenditure incurred by a person in a financial year in relation to a combined project is a reference to the sum of:

(a) any amount that is taken by subsection (3), subsection 36(1) or Division 5 to be class 1 GDP factor expenditure incurred by the person in relation to the project in the financial year; and

(b) where the financial year is the year in which the project combination certificate in relation to the project came into force - any amount that is taken by subsection (3), paragraph 36(1)(b) or Division 5 to be class 1 GDP factor expenditure incurred by the person in relation to the pre-combination projects in relation to the combined project in the financial year.

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

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

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

(c) the class 2 uplifted general expenditure; and

(d) the class 1 GDP factor expenditure;

incurred by a person in a financial year in relation to a petroleum project exceeds the assessable receipts derived by the person in the financial year in relation to the project, an amount ascertained in accordance with the formula AB , where:

A is so much of the excess as does not exceed the amount of the GDP factor expenditure; and

B is the class 1 GDP factor in relation to the financial year;

shall be taken to be class 1 GDP factor expenditure incurred by the person in relation to the project on the first day of the next succeeding financial year.

35(4)    
In this section:

class 1 GDP factor expenditure
means general project expenditure incurred in any financial year, or exploration expenditure incurred before 1 July 1990.