Legal database - View: Extrinsic Materials: Petroleum Resource Rent Legislation Amendment Act 1991 - Explanatory Memorandum

House of Representatives

Petroleum Resource Rent Legislation Amendment Bill 1991

Petroleum Resource Rent Legislation Amendment Act 1991

Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon. P.J. Keating, M.P.)

Index

*Part 1- Preliminary*
Clause / Schedule	Section (A)mended (I)nserted (R)epealed		Subject	EM Page
1	-	-	Short Title of Act	*
2	-	-	Commencement Date	#

*Part 2 - Amendments of the Petroleum Resource Rent Tax Assessment Act 1987*
Clause/ Schedule	Section (A)mended (I)nserted (R)epealed		Subject	EM Page
3	-	-	Principal Act	*
4(a)-(d)	2	A	Amend definitions -
			. "eligible production licence";	14,15
			. "year of tax
			. "lease derived production licence"; and	59
			. "permit derived production licence"
(e)	2	R	Omit - "excluded exploration permit"
(f)	2	I	Include definitions for -
			. "applicable commencement date"	15
			. "Bass Strait exploration permit"	14
			. "Bass Strait project"	15
			. "Company"	72
			. "GDP factor"
			. "North West Shelf exportation permits"	14
			. "transferable exploration expenditure"	69
5	2A	I	GDP factor
	2B	I	Group Companies	72
6	4(2)	I	Relationship between licences, permits and leases etc.	59
7	19	A	Petroleum Project	14,15
	19(1A)	I	Petroleum Project	14,15
	19(2A)	I	Petroleum Project	14,15
8	22	I	Substitution of new section - Taxable Profit	35
9	31(f) & (g)	A	Time of derivation of receipts	15
10	31A	I	Eligible real expenditure and the Bass Strait Project	16
11	32(a)-(g)	A	Deductible expenditure	36
12(a)-(c)	33	A	Class 1 augmented bond rate general expenditure	28
12(d)	33(4)	I	Definition- "class 1 general project expenditure"	28
13(a)-(c)	34	A	Class 1 augmented bond rate exploration expenditure	37
13(d)	34(4)	I	definition- "class 1 exploration expenditure"	37
14	34A	I	Class 2 augmented bond rate general expenditure	28
15(a)-(e)	35(1)-(3)	A	Class 1 GDP factor expenditure	39
15(f)	35(4)-(7)	A	Class 1 GDP factor expenditure	39
16	35A	I	Class 2 augmented bond rate exploration expenditure	38, 50
	35B	I	Class 2 GDP factor expenditure	40, 41
17	36	A	Class 1 augmented bond rate exploration and class 1 GDP factor expenditures in relation to project groups	41
18	45	R	Repeal of existing section	15,16
		I	Time of incurring expenditure
19	DIV 3A	I	Transfer of exploration expenditure incurred on or after 1 July 1990
	45A	I	Transfer of expenditure - general	42, 69
	45B	I	Transfer of expenditure - group companies	42, 72
	45C	I	Commissioner's powers to make transfers of expenditure	73
	45D	I	Effect of transfer of expenditure	60, 70, 74, 78
20	64	A	Amendment of Assessments	74
21	97	A	Notional tax amount	43
22	-	I	Addition of a Schedule (as detailed below)

*Schedule: Provisions Relating to Incurring and Transfer of Exploration Expenditure on or after 1 July 1990*
Section (A)mended (I)nserted (R)epealed		Subject	EM Page
Clause 1	I	Defined Terms	49
Clause 2	I	Holding an Interest - Petroleum Project	50, 70
Clause 3	I	Holding an interest - Exploration right	70
Clause 4	I	Amounts to be worked out to the nearest dollar	*

*Part 2 - Class 2 Augmented Bond Rate Exploration Expenditure and Transferable Exploration Expenditure*
Section (A)mended (I)nserted (R)epealed		Subject	EM Page
Clause 5	I	Interpretation	48
Clause 6	I	Matters dealt with in this Part	47
Clause 7	I	What happens if there is no notional taxable profit	49
Clause 8	I	What happens if there is a notional taxable profit	51 - 56

*Part 3 - Class 2 GDP Factor Expenditure and Transferable Exploration Expenditure*
Section (A)mended (I)nserted (R)epealed		Subject	EM Page
Clause 9	I	Interpretation	56
Clause 10	I	Matters dealt with in this Part	47
Clause 11	I	What happens if there is no notional taxable profit	57
Clause 12	I	What happens if there is a notional taxable profits	57

*Part 4 - Transferable Exploration Expenditure Not Included in Relation to a Project*
Section (A)mended (I)nserted (R)epealed		Subject	EM Page
Clause 13	I	Matters dealt with in this Part	59
Clause 14	I	Assumptions on which amount to be worked out	59
Clause 15	I	Non-transferable expenditure	60-64
Clause 16	I	Amounts to be worked out	60
Clause 17	I	What happens if the notional assessable receipts equal or exceed the notional deductible expenditure	60
Clause 18	I	What happens if the notional deductible expenditure exceeds the notional assessable receipts	60, 61, 64

*Part 5 - General Rules Relating to Transfer of Exploration Expenditure*
Section (A)mended (I)nserted (R)epealed		Subject	EM Page
Clause 19	I	Interpretation	69
Clause 20	I	Matters dealt with in this Part	69
Clause 21	I	Rule - must be a notional taxable profit in relation to receiving project	69
Clause 22	I	Rule - person must have held interests in relation to transferring entity and receiving project	70, 71
Clause 23	I	Rule - transfer to project with most recent production licence	71, 75
Clause 24	I	Rule - restriction on transfer of ABR expenditure	69, 71, 76
Clause 25	I	Rule - restriction on transfer of GDP expenditure	71, 76
Clause 26	I	Rule-total transferred not to exceed notional taxable profit	77

*Part 6 - Rules Relating to Transfer of Exploration Expenditure between Group Companies*
Section (A)mended (I)nserted (R)epealed		Subject	EM Page
Clause 27	I	Interpretation	73
Clause 28	I	Situation to which this Part applies	77, 78
Clause 29	I	Matters dealt with in this Part	73
Clause 30	I	Rule - must be a notional taxable profit in relation to receiving company and receiving project	73
Clause 31	I	Rule - loss company and profit company to have held interests and been group companies	73
Clause 32	I	Rule - transfer to project with most recent production licence	78
Clause 33	I	Rule - restriction on transfer of ABR expenditure	73
Clause 34	I	Rule - restriction on transfer of GDP expenditure	73
Clause 35	I	Rule - total transferred not to exceed notional taxable profit	79

*Part 7 - Compounding of Transferred Amounts*
Section (A)mended (I)nserted (R)epealed		Subject	EM Page
Clause 36	I	Matters dealt with in this Part
Clause 37	I	What happens if expenditure was incurred in an ABR expenditure year	78, 80, 81
Clause 38	I	What happens if expenditure was incurred in a GDP expenditure year	79

*Part 3 - Amendments of the Excise Act 1901*
Clause/ Schedule	Section (A)mended (I)nserted (R)epealed		Subject	EM Page
23	-	-	Principal Act	*
24	58	A	Entry for home consumption etc.	85
25	78B	R	Repeal of Section	85

*Part 4 - Amendments of the Excise Tariff Act 1921*
Clause/ Schedule	Section (A)mended (I)nserted (R)epealed		Subject	EM Page
26	-	-	Principal Act	*
27(a)	3(1)	A	Omit definition of "excepted area	86
27(b)	3(1)	I	Include definition of "Resource Rent Tax area"	86
28	5B	A	Petroleum	86
29	Sub-items 17(A),(B) & (C)	A	Schedule to the Act - Omit "an excepted area" and substitute "a Resource Rent Tax area"	86

*Part 5 - Amendment of the Petroleum (Submerged Lands)(Royalty) Act 1967*
Clause/ Schedule	Section (A)mended (I)nserted (R)epealed		Subject	EM Page
30	-	-	Principal Act	*
31	4A	I	Application of the Act Repeal of former sections and substitution of new sections	89

*Part 6 - Transitional and Application Provisions*
Clause/ Schedule	Section (A)mended (I)nserted (R)epealed		Subject	EM Page
32	-	-	Definitions:	22
			. "Bass Strait area"
			. "Bass Strait excise payment"
			. "Bass Strait royalty payment"
			. "creditable amount"
			. "transitional year"
			PRRT Act
33	various	-	- application of amendments	15
34	-	-	- Bass Strait excise and Royalty payments	16
35	-	-	- Collection by instalments does not apply to the Bass Strait project and the financial year starting on 1 July 1990	23
36	-	-	- Instalments paid or payable before commencement not to be recalculated	43
37	-	-	Excise Acts - amendments apply to petroleum recovered after the commencement	86
			Royalty Act:
38	-	-	- amendments apply to petroleum recovered after the commencement	90
39	-	-	- refund of overpayments of royalty on Bass Strait petroleum recovered before 1 July 1990	90
			Petroleum (Submerged Lands) Act:
40	-	-	- circumstances where Victoria is to refund overpayments in respect of Bass Strait Petroleum	91
41	-	-	Application of creditable amounts against tax liabilities	23
42	-	-	Effect of allowing credit or refund on liability to pay royalty or excise etc.	23, 91
43	-	-	Reduction of Income Tax deductions for PRRT payments	24

Note:

•: References to Principal Act or minor technical/consequential amendments only; not specifically mentioned in the Explanatory Memorandum
#: Mentioned in the relevant chapters

Copyright notice

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).