Commonwealth Consolidated Acts

PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987 - SECT 24

             (1)  For the purposes of this Act, a reference to assessable petroleum receipts derived by a person in relation to a petroleum project is a reference to:

                     (a)  where any petroleum from the project is or was sold, whether processed or unprocessed, before any marketable petroleum commodity is or was produced from it--the consideration receivable, less any expenses payable, by the person in relation to the sale; and

                     (b)  where any marketable petroleum commodity (other than sales gas to which paragraph (d) applies) produced from petroleum from the project becomes or became an excluded commodity by virtue of being sold--the consideration receivable, less any expenses payable, by the person in relation to the sale; and

                     (c)  where any marketable petroleum commodity (other than sales gas to which paragraph (e) applies) produced from petroleum from the project becomes or became an excluded commodity otherwise than by virtue of being:

                              (i)  sold; or

                             (ii)  treated or processed, or moved, for re‑injection or destruction or for use in carrying on or providing operations, facilities or other things of a kind referred to in section 37, 38 or 39 in relation to the petroleum project;

                            so much of the market value of the commodity immediately before it becomes or became an excluded commodity, or, where there is insufficient evidence of that market value, of such amount as, in the opinion of the Commissioner, is fair and reasonable, as is taken by section 26 to be derived by the person; and

                     (d)  where:

                              (i)  any sales gas produced from petroleum from the project becomes or became an excluded commodity by virtue of being sold; and

                             (ii)  the sale is a non‑arm's length transaction; and

                            (iii)  the regulations apply to the sales gas;

                            the amount worked out in accordance with the regulations; and

                     (e)  where the regulations apply to any sales gas produced from petroleum from the project, and that sales gas becomes or became an excluded commodity otherwise than by virtue of being:

                              (i)  sold; or

                             (ii)  treated or processed, or moved, for re‑injection or destruction or for use in carrying on or providing operations, facilities or other things of a kind referred to in section 37, 38 or 39 in relation to the petroleum project;

                            the amount worked out in accordance with the regulations.

             (2)  In this section:

"non-arm's length transaction" means a transaction where the Commissioner, having regard to any connection between the parties to the transaction or to any other relevant circumstances, is satisfied that the parties to the transaction are not dealing with each other at arm's length in relation to the transaction.

"petroleum from the project" means any petroleum or a constituent of petroleum:

                     (a)  that is recovered from the production licence area or areas in relation to the petroleum project in question; or

                     (b)  that is external petroleum in relation to the project.