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Friday, 28 November 1986
Page: 3945

Mr HURFORD (Minister for Immigration and Ethnic Affairs and Minister Assisting the Treasurer)(10.19) —I move:

That the Bill be now read a second time.

The new profit-based taxing regime for offshore petroleum projects is, in respect of those projects, to replace the existing production-based excise and royalty arrangements. This Bill will amend the Excise Tariff Act 1921 and the Petroleum (Submerged Lands) (Royalty) Act 1967 to effect that replacement. The Bill will also amend the Income Tax Assessment Act 1936 to provide income tax deductibility for petroleum resource rent tax paid other than by way of instalments. Conversely, refunds and certain credits of petroleum resource rent tax are to be made subject to income tax. Decisions under the Petroleum (Submerged Lands) Act 1967 will assume greater importance for the Commonwealth with the introduction of petroleum resource rent tax. That Act is therefore being amended by this Bill to provide for decisions relating to the development of petroleum pools straddling production licence areas, including pools which straddle the outer boundary of the territorial sea, to be taken jointly by the Minister for Resources and Energy and the relevant State or Northern Territory Minister. The scope of the Crimes (Taxation Offences) Act 1980 is also being extended by the Bill, so that offences against that Act will cover schemes for the fraudulent evasion of petroleum resource rent tax in the same way as they deal with other taxes of the Commonwealth. Details of this Bill are also set out in the explanatory memorandum that has been circulated. I commend the Bill to the House.

Debate (on motion by Mr Beale) adjourned.