Petroleum Resource Rent Tax Assessment Act 1987

SCHEDULE 1 - PROVISIONS RELATING TO INCURRING AND TRANSFER OF EXPLORATION EXPENDITURE ON OR AFTER 1 JULY 1990  

Sections 2 , 35A , 35B , 45A , 45B and 45D

PART 7 - COMPOUNDING OF TRANSFERRED AMOUNTS  

36A   TRANSFER YEARS THAT START ON OR AFTER 1 JULY 2019  

36A(1)    
This clause applies if the transfer year starts on or after 1 July 2019.

36A(2)    
If the financial year in which the expenditure was incurred (the expenditure year ) is the financial year immediately before the transfer year then, for the purposes of subsection 45D(2) , the transfer is taken to be of the amount worked out by multiplying the amount actually transferred by the long-term bond rate in relation to the expenditure year plus 1.05.

36A(3)    
If the financial year in which the expenditure was incurred (the expenditure year ) is not the financial year immediately before the transfer year, the following provisions apply:

(a) work out, in relation to the expenditure year and each later financial year ending before the transfer year, an amount in accordance with the formula:

Transferred amount × Uplift rate

where:

transferred amount
means:

(i) in making the calculation in relation to the expenditure year - the amount of expenditure actually transferred; and

(ii) in making the calculation in relation to a later financial year - the amount calculated under this paragraph in relation to the expenditure and the immediately preceding financial year.

uplift rate
, for the financial year in relation to which the calculation is being made (the calculation year ), means:

(i) if the calculation year is 10 or more years after the expenditure year - the GDP factor for the calculation year; and

(ii) otherwise - the long-term bond rate in relation to the calculation year plus 1.05;

(b) for the purposes of subsection 45D(2) , the transfer is taken to be of the amount worked out under paragraph (a) in relation to the expenditure and the financial year immediately before the transfer year.