Commonwealth Consolidated Acts

PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987 - SECT 34A

             (1)  For the purposes of this Act, a reference to the class 2 augmented bond rate general expenditure incurred by a person in a financial year in relation to a petroleum project (not being a combined project or the Bass Strait project) is a reference to the sum of:

                     (a)  any amount of class 2 general project expenditure actually incurred by the person in relation to the project in the financial year, not being expenditure incurred more than 5 years before the date specified in the notice issued under subsection 258(7) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 in relation to the project; and

                     (b)  any amount that is taken by subsection (4) or section 48 to be class 2 augmented bond rate general expenditure incurred by the person in relation to the project in the financial year.

             (2)  For the purposes of this Act, a reference to the class 2 augmented bond rate general expenditure incurred by a person in a financial year in relation to a combined project is a reference to the sum of:

                     (a)  any amount of class 2 general project expenditure actually incurred by the person in relation to the project in the financial year (not being expenditure incurred before the project combination certificate in relation to the project came into force); and

                     (b)  any amount that is taken by subsection (4) or section 48 to be class 2 augmented bond rate general expenditure incurred by the person in relation to the project in the financial year; and

                     (c)  if the financial year is the year in which the project combination certificate in relation to the project came into force--any amount of class 2 general project expenditure, or any amount that is taken by subsection (4) or section 48 to be class 2 augmented bond rate general expenditure, incurred by the person in relation to the pre‑combination projects in the financial year.

             (3)  For the purposes of this Act, a reference to the class 2 augmented bond rate general expenditure incurred by a person in a financial year in relation to the Bass Strait project is a reference to the sum of:

                     (a)  any amount of class 2 general project expenditure actually incurred by the person in relation to the project in the financial year; and

                     (b)  any amount that is taken by subsection (4) or section 48 to be class 2 augmented bond rate general expenditure incurred by the person in relation to the project in the financial year.

             (4)  For the purposes of subsection (1), (2) or (3), if the sum of:

                     (a)  the class 1 augmented bond rate general expenditure; and

                     (b)  the class 1 augmented bond rate exploration expenditure; and

                     (c)  the class 2 augmented bond rate general expenditure;

incurred by a person in a financial year (in this subsection called the assessable year ) in relation to a petroleum project exceeds the assessable receipts derived by the person in the assessable year in relation to the project, the person is taken to incur, in relation to the project and on the first day of the next financial year, an amount of class 2 augmented bond rate general expenditure worked out in accordance with the formula:

where:

"Available excess" means so much of the excess as does not exceed the class 2 augmented bond rate general expenditure incurred in the assessable year.

"Augmented bond rate" means the long term bond rate in relation to the assessable year plus 1.05.

             (5)  In this section:

class 2 general project expenditure means general project expenditure actually incurred on or after 1 July 1990.