Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1988No. 11, 1988 - SECT 9

9. Section 6AA of the Principal Act is amended:

   (a)  by omitting subsections (1) and (2) and substituting the following
        subsections:

"(1) For all purposes of this Act related directly or indirectly to:

   (a)  the exploration for minerals in, or the exploitation of the natural
        resources (being minerals) of:

        (i)    an eligible external Territory;

        (ii)   a Petroleum Act adjacent area;

        (iii)  an Installations Act adjacent area by means of a sea
               installation installed in that area; or

        (iv)   the Papua New Guinea offshore area;
whether the exploration or exploitation is by the taxpayer concerned or by
another person;

   (b)  the carrying on of an environment related activity in:

        (i)    an eligible external Territory;

        (ii)   a Petroleum Act adjacent area;

        (iii)  an Installations Act adjacent area by means of a sea
               installation installed in that area; or

        (iv)   the Papua New Guinea offshore area;
whether the activity is carried on by the taxpayer concerned or by another
person; or

   (c)  acts, matters, circumstances and things touching, concerning, arising
        out of or connected with any such exploration, exploitation or
        environment related activity;
including purposes in relation to the application of this Act in respect of
income or profits derived from any such exploration, exploitation, environment
related activity, act, matter, circumstance or thing, or in respect of
dividends paid wholly or partly out of any such profits, the provisions of
this Act have effect, subject to this section, as if:

   (d)  the whole of each eligible external Territory and each Petroleum Act
        adjacent area were, and at all times had been, a part of Australia;

   (e)  each sea installation, when installed in the Installations Act
        adjacent area, were a part of Australia; and

   (f)  the Papua New Guinea offshore area were, and at all times had been, a
        part of Papua New Guinea.

"(2) Where a company carries on business that:

   (a)  consists of exploration or exploitation, or an environment related
        activity, of a kind referred to in subsection (1); or

   (b)  arises out of or is connected with any such exploration, exploitation
        or environment related activity (whether by that company or by another
        person);
the company shall, for the purposes of the definition of 'resident' or
'resident of Australia' in subsection 6 (1), be deemed to be carrying on
business in Australia.";

   (b)  by inserting after subsection (3A) the following subsections:

"(3B) Subject to subsection (3C), this section does not operate so as to
include in the assessable income of a person any income derived before 15
October 1987 that would not have been so included if section 9 of the
Taxation  Laws Amendment Act 1988 had not come into operation.

"(3C) This section shall be taken to have applied as if the reference in
paragraph (4) (a) of this section, as in force during the period commencing
when the Petroleum (Submerged Lands) Amendment Act 1980 came into operation
and ending immediately before this subsection came into operation, to the
Petroleum (Submerged Lands) Act 1967-1974 had instead been a reference to the
Petroleum (Submerged Lands) Act 1967 as in force immediately before the
Petroleum (Submerged Lands) Amendment Act 1980 came into operation.";

   (c)  by omitting paragraphs (4) (a), (b) and (c) and substituting the
        following paragraphs:

"(a) 'eligible external Territory' means the area, whether land or water,
within the territorial limits of:

        (i)    the Territory of Ashmore and Cartier Islands;

        (ii)   the Coral Sea Islands Territory; or

        (iii)  the Territory of Heard and McDonald Islands;
and includes the space above and below that area;

   (b)  'environment related activity' has the same meaning as in the Sea 
        Installations Act 1987 ; and

   (c)  'Installations Act adjacent area' means an area that is an adjacent
        area for the purposes of the Sea Installations Act 1987;";

   (d)  by adding at the end of subsection (4) the following word and
        paragraph:

"; and (e) ' Petroleum Act adjacent area' means an area that is an adjacent
area for the purposes of the Petroleum (Submerged Lands) Act 1967.";

   (e)  by adding at the end the following subsection:

"(5) Where, if the definition of 'sea installation' in subsection 4 (1) of the
Sea Installations Act 1987:

   (a)  extended to include:

        (i)    resources industry fixed structures and resources industry
               mobile units, within the meaning of subsections 4 (2) and (3)
               of that Act;

        (ii)   partly constructed structures (including pipelines) or vessels
               that, when completed, are intended to be, or could be,
               structures or units referred to in subparagraph (i); and

        (iii)  the remains of structures (including pipelines) or vessels that
               have been structures, units or vessels referred to in
               subparagraph (i) or (ii); and

   (b)  did not include fishing boats, fishing equipment and pearling vessels;
        a structure or vessel, or structures or vessels, would, by section 6
        of that Act, be deemed for the purposes of that Act to be a sea
        installation installed in a particular area, the structure or vessel,
        or the structures or vessels, shall be taken for the purposes of this
        section to be a sea installation installed in that area.".