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