Petroleum Resource Rent Tax Assessment Act 1987
View history note
Hide history noteCertain expenditure incurred on the day when section 58B election takes effect
58K(1)
If:
(a) a person has made an election under section 58B (the current election ) with effect from the start of a particular financial year; and
(b) any of the following subparagraphs applies:
(i) under subsection 33(3) , an amount is taken to be class 1 augmented bond rate general expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;
(ii) under subsection 34(3) , an amount is taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;
(iii) under subsection 34A(4) , an amount is taken to be class 2 uplifted general expenditure incurred by the person on the first day of the financial year;
(iv) under subsection 35C(5) , an amount is taken to be resource tax expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;
(v) (Repealed by No 43 of 2019)
(vi) under subsections 35E(1) and (1B) , or under subsection 35E(3) , an amount is taken to be starting base expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;
(vii) the person has a starting base amount in relation to an interest in a petroleum project; and
(c) as a result of the current election, section 58D requires that the amount be translated into the applicable functional currency;
the amount is to be translated into the applicable functional currency at the exchange rate applicable when the current election took effect.
Class 2 uplifted exploration expenditure, class 2 GDP factor expenditure and transferable exploration expenditure
58K(2)
For the purpose of working out:
(a) the class 2 uplifted exploration expenditure; or
(b) the class 2 GDP factor expenditure; or
(c) the transferable exploration expenditure;
that a person is taken to have incurred in a financial year in relation to a petroleum project, if:
(d) the person has made an election (the current election ) under section 58B ; and
(e) the current election is in effect for the financial year; and
(f) section 58D requires that an amount of expenditure be translated into the applicable functional currency; and
(g) the expenditure was actually incurred before the current election took effect;
the expenditure is to be translated into the applicable functional currency at the exchange rate applicable when the current election took effect.
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