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Petroleum Resource Rent Tax Assessment Act 1987
In force
Administered by
Department of the Treasury
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C2016C00601 C42
10 March 2016
-
31 December 2016
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Part I—Preliminary
1 Short title
1A Application of the Criminal Code
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Part II—Interpretation
2 Defined terms
2AA Determinations relating to certain defined terms
2AB Exclusion of incidental recovery of coal seam gas
2AC Exclusion of incidental exploration etc. for petroleum
2A GDP factor
2B Group companies, subsidiaries, basic company groups and overall company groups
2BA Designated company groups
2C Greater Sunrise apportionments
2D Future closing-down expenditure
2E Marketable petroleum commodity
3 Petroleum pools
4 Relationship between licences, permits and leases etc.
4A Holding an interest—petroleum project
4B Holding an interest—exploration permit
4C Holding an interest—retention lease
5 Petroleum exploration and recovery in relation to certain areas
6 Termination of use of property in relation to a petroleum project
7 Property installed ready for use
8 Consideration not in cash
9 Amounts credited, reinvested etc. to be taken to be receivable
10 Translation of amounts into Australian currency
11 Residence
12 Partnerships
13 Unincorporated associations
14 Application of Act
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Part III—Administration
15 General administration of Act
16 Annual report
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Part IV—Petroleum projects
19 Petroleum project
20 Combining of petroleum projects
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Part V—Liability to taxation
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Division 1—Liability to tax on taxable profit
21 Liability to pay tax
22 Taxable profit
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Division 2—Assessable receipts
22B Effect of GST etc. on assessable receipts
23 Assessable receipts
24 Assessable petroleum receipts
24A Assessable tolling receipts
25 Assessable exploration recovery receipts
26 Amounts notionally derived where no sale of petroleum etc.
27 Assessable property receipts
28 Assessable miscellaneous compensation receipts
29 Assessable employee amenities receipts
29A Assessable incidental production receipts
30 Reduction of amount of assessable property etc. receipts
31 Time of derivation of receipts
31A Eligible real expenditure and the Bass Strait project
31AA Eligible real expenditure—onshore petroleum projects and the North West Shelf project
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Division 3—Deductible expenditure
31B Effect of input tax credits etc. on deductible expenditure
32 Deductible expenditure
33 Class 1 augmented bond rate general expenditure
34 Class 1 augmented bond rate exploration expenditure
34A Class 2 augmented bond rate general expenditure
35 Class 1 GDP factor expenditure
35A Class 2 augmented bond rate exploration expenditure
35B Class 2 GDP factor expenditure
35C Resource tax expenditure
35D Acquired exploration expenditure
35E Starting base expenditure
36 Class 1 augmented bond rate exploration and class 1 GDP factor expenditures in relation to project groups
36A Designated frontier areas for 2004
36B Designated frontier areas for 2005 to 2009
36C Uplifted frontier expenditure
37 Exploration expenditure
38 General project expenditure
39 Closing-down expenditure
40 Bad debts
41 Effect of procuring the carrying on of operations etc. by others
42 Expenditure on property for partial project use
43 Deferred use of property on project etc.
44 Excluded expenditure
45 Time of incurring of expenditure
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Division 3A—Transfer of exploration expenditure incurred on or after 1 July 1990
45A Transfer of expenditure—general
45B Transfer of expenditure—group companies
45C Commissioner’s power to make transfers of expenditure
45D Effect of transfer of expenditure
45E Instalment transfers and annual transfers
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Division 4—Tax credits
46 Credits in respect of closing-down expenditure
47 Application of credits
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Division 5—Effect of certain transactions
48 Transfer of entire entitlement to assessable receipts
48A Transfer on or after 1 July 1993 of part of entitlement to assessable receipts
49 Transfer before 1 July 1984 of partial entitlement to assessable receipts
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Division 6—Anti-avoidance
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Subdivision A—Arrangements to obtain tax benefits
50 Arrangements
51 Tax benefits
52 Arrangements to which Subdivision applies
53 Cancellation of tax benefits etc.
55 Operation of Subdivision
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Subdivision B—Non-arm’s length transactions
56 Arm’s length transaction
57 Non-arm’s length receipts
58 Non-arm’s length expenditure
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Division 7—Functional currency
58A Objects of this Division
58B Person may elect to be bound by the functional currency rules
58C Applicable foreign currency
58D Basic translation rules
58E Translation rule—assessable receipt
58F Translation rule—eligible real expenditure
58G Translation rule—transfer of entire entitlement to assessable receipts
58H Translation rule—transfer of part of entitlement to assessable receipts
58J Translation of taxable profit, or excess closing-down expenditure, into Australian currency
58K Special translation rules—events that happened before the current election took effect
58L Withdrawal of election
58M Special translation rules—events that happened before the withdrawal of an election took effect
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Division 8—Consolidated groups
58N Choice to consolidate
58P Single entity rule
58Q Interests taken to be transferred to head company etc. on joining
58R Interests taken to be transferred to leaving entity on leaving
58RA Interests taken to be transferred when combined with offshore interests
58S Acquisition of consolidated group by another consolidated group etc.
58T Effect of choice to continue group after shelf company becomes new head company
58U Effect of change of head company or provisional head company of a MEC group
58V Effect of group conversions involving MEC groups
58W Subsidiary members that are trusts
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Part VI—Returns and assessments
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Division 1—Returns
59 Annual returns
60 Other returns
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Division 2—Assessments (general)
61 Making assessments
62 Self-assessment
63 Default assessments
64 Reliance on information in returns and statements
65 Validity of assessments
66 Objections to assessments
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Division 3—Assessments (amendment)
67 Amendment of assessments
68 Amended assessments taken to be assessments
69 Amending amended assessments
70 Extended periods for amendment—taxpayer applications and private rulings
71 Extended periods for amendment—Federal Court orders and taxpayer consent
72 Refund of overpaid amounts
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Part VIII—Collection and recovery of tax
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Division 1—General
82 When tax and shortfall interest charge payable
85 Unpaid tax and charges
92 Person in receipt or control of money of non-resident
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Division 2—Collection by instalments
93 Interpretation
94 Liability to pay instalments of tax
95 When instalment of tax is payable
96 Amount of instalment of tax
97 Notional tax amount
98 Instalment statement
98A Instalment transfer interest charge—liability
98B Instalment transfer interest charge—amount
98C Instalment transfer interest charge—notification and payment
98D Instalment transfer interest charge—remission
99 Application of payments of instalments of tax
100 Unpaid instalments
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Part X—Miscellaneous
106A Review of certain decisions
108A Offshore information notices
109 Agents and trustees
112 Records to be kept and preserved
113 Service on partnerships and associations
114 Regulations
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Schedule 1—Provisions relating to incurring and transfer of exploration expenditure on or after 1 July 1990
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Part 1—Interpretation
1 Defined terms
4 Amounts to be worked out to nearest dollar
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Part 1A—Special rules relating to the transfer of certain expenditure
4A Certain Greater Sunrise expenditure is not transferable
4B Greater Sunrise transferable exploration expenditure must be adjusted
4C Certain onshore or North West Shelf expenditure is not transferable
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Part 2—Class 2 augmented bond rate exploration expenditure and transferable exploration expenditure
5 Interpretation
6 Matters dealt with in this Part
7 What happens if there is no notional taxable profit
8 What happens if there is a notional taxable profit
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Part 3—Class 2 GDP factor expenditure and transferable exploration expenditure
9 Interpretation
10 Matters dealt with in this Part
11 What happens if there is no notional taxable profit
12 What happens if there is a notional taxable profit
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Part 4—Transferable exploration expenditure not incurred in relation to a project
13 Matters dealt with in this Part
14 Assumptions on which amounts to be worked out
15 Non-transferable expenditure
16 Amounts to be worked out
17 What happens if the notional assessable receipts equal or exceed the notional deductible expenditure
18 What happens if the notional deductible expenditure exceeds the notional assessable receipts
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Part 5—General rules relating to transfer of exploration expenditure
19 Interpretation
20 Matters dealt with in this Part
21 Rule—must be a notional taxable profit in relation to receiving project
22 Rule—person must have held interests in relation to transferring entity and receiving project
23 Rule—transfer to project with most recent production licence
24 Rule—restriction on transfer of ABR expenditure
25 Rule—restriction on transfer of GDP expenditure
26 Rule—total transferred not to exceed notional taxable profit
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Part 6—Rules relating to transfer of exploration expenditure between group companies
27 Interpretation
28 Situations to which this Part applies
29 Matters dealt with in this Part
30 Rule—must be a notional taxable profit in relation to profit company and receiving project
31 Rule—continuity of interest within company group
32 Rule—transfer to project with most recent production licence
33 Rule—restriction on transfer of ABR expenditure
34 Rule—restriction on transfer of GDP expenditure
35 Rule—total transferred not to exceed notional taxable profit
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Part 7—Compounding of transferred amounts
36 Matters dealt with in this Part
37 What happens if expenditure was incurred in an ABR expenditure year
38 What happens if expenditure was incurred in a GDP expenditure year
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Schedule 2—Starting base for onshore petroleum projects and the North West Shelf project
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Part 1—Preliminary
1 Object of this Schedule
2 Definitions
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Part 2—Choosing a valuation approach
3 Choosing a valuation approach
4 Restriction on specifying the book value approach
5 The valuation approach for starting base assets
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Part 3—Starting base amounts
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Division 1—Starting base amounts
6 When a person has a starting base amount
7 The amount of the starting base amount
8 Alternative valuation method for coal seam gas projects
9 Reducing the starting base amount
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Division 2—Starting base assets
10 Meaning of starting base asset
11 Holding a starting base asset
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Division 3—Valuation of starting base assets
12 The book value of a starting base asset
13 The market value of a starting base asset
14 Partial disposal of a starting base asset before 1 July 2012
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Division 4—Interim expenditure
15 Meaning of interim expenditure
16 Adjusted interim expenditure amounts
17 Partial disposal of an asset before 1 July 2012
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Part 4—The look-back approach
18 Expenditure incurred in acquiring interests in petroleum projects
19 Acquired exploration expenditure amounts
20 Restriction applying the look-back approach in certain cases
21 Certain receipts taken to be assessable receipts
21A Assessable property receipts
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Part 5—Starting base returns and assessments
22 Starting base returns
23 Starting base assessments
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history