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 4 - TRANSFERABLE EXPLORATION EXPENDITURE NOT INCURRED IN RELATION TO A PROJECT  

16  

16   AMOUNTS TO BE WORKED OUT  
Work out, in relation to the person, the exploration permit or retention lease and the assessable year, the following amounts:

(a) the total of the assessable receipts derived by the person in relation to the notional project during the period starting on 1 July 1990 and ending at the end of the assessable year;

(b) the total of the deductible expenditure actually incurred by the person in relation to the notional project during the period starting on 1 July 1990 and ending at the end of the assessable year;

(c) the total of:

(i) any amounts of exploration expenditure (other than designated frontier expenditure) actually incurred by the person; and

(ii) any amounts of uplifted frontier expenditure taken to be incurred by the person in respect of designated frontier expenditure actually incurred by the person;

in relation to the notional project during the period starting on 1 July 1990 and ending at the end of the assessable year;

(d) the amount worked out under paragraph (c), less the total of the amounts of non-transferable expenditure incurred by the person in relation to the notional project during the period starting on 1 July 1990 and ending at the end of the assessable year.

In this Part, the amount worked out under paragraph (a) is called the notional assessable receipts , the amount worked out under paragraph (b) is called the notional deductible expenditure , the amount worked out under paragraph (c) is called the notional exploration expenditure and the amount worked out under paragraph (d) is called the reduced notional exploration expenditure .

Note: the effect of subsection 45D(3) must be taken into account when working out the notional deductible expenditure and the notional exploration expenditure.