Petroleum Resource Rent Tax Assessment Amendment Act 2006 (78 of 2006)

Schedule 1   Deducting transferable exploration expenditure from tax instalments

Part 1   Amendments

Petroleum Resource Rent Tax Assessment Act 1987

7   At the end of Division 3A of Part V

Add:

45E Instalment transfers and annual transfers

(1) Subject to this section, the following provisions apply in relation to instalment periods in the same way as they apply in relation to financial years:

(a) this Division;

(b) the Schedule;

(c) definitions or other provisions of this Act as they apply for the purpose of this Division or the Schedule.

Note: A person who contravenes section 45A or 45B as the section applies in relation to an instalment period commits an offence: see subsections 45A(5) and 45B(5).

(2) The provisions mentioned in subsection (1) apply under that subsection only to the extent necessary to require or permit the making of transfers of expenditure in relation to instalment periods.

(3) For the purpose of subsection (1), the following assumptions apply in relation to any petroleum project and an instalment period in a financial year:

(a) the instalment period is taken to be a financial year;

(b) the amounts taken by subsections 33(3), 34(3), 34A(4), 35(3) and 36(1) (including because of section 48) to be incurred by any person in relation to any project on the first day of the financial year are instead taken to be only the instalment percentages of those amounts;

(c) the amounts that would, for the purposes of the Schedule, be the incurred exploration expenditure amounts in relation to financial years before that financial year are instead taken to be only the instalment percentages of those amounts.

(4) In this Act, an annual transfer is a transfer of an amount of expenditure in accordance with this Division in its application to a financial year.

(5) In this Act, an instalment transfer is a transfer of an amount of expenditure in accordance with this Division in its application under this section to an instalment period.

(6) Despite subsection 45D(3), if an instalment transfer of an amount of expenditure is made in relation to an instalment period in a financial year, the instalment transfer does not prevent the transfer of all (or a part) of that expenditure being made again:

(a) in relation to a later instalment period; or

(b) in relation to the financial year or a later financial year (as an annual transfer).

Note: In some circumstances, interest may be charged in relation to an instalment transfer if the expenditure cannot be transferred again under this Division as an annual transfer: see section 98A.

(7) In this section:

instalment period includes a period in a financial year that would be an instalment period if the financial year were a year of tax.