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Treasury Laws Amendment (2019 Petroleum Resource Rent Tax Reforms No. 1) Bill 2019

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8669

2016-2017-2018-2019

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Treasury Laws Amendment (2019 Petroleum Resource Rent Tax Reforms No.  1) Bill 2019

 

 

(1)     Schedule 1, item 14, page 5 (lines 23 to 24), to be opposed .

[standard uplift expenditure]

(2)     Schedule 1, page 6 (before line 13), before item 21, insert:

20D  Subparagraphs 35D(3)(a)(iii) and (v) and (4)(a)(iii) and (v)

Omit “class 2 augmented bond rate”, substitute “class 2 uplifted”.

[standard uplift expenditure]

(3)     Page 32 (after line 4), at the end of the Bill, add:

Schedule 5 Order of deductible expenditures

   

Petroleum Resource Rent Tax Assessment Act 1987

1  Subsection 33(3)

Omit “where the class 1 augmented bond rate general expenditure”, substitute “if the sum of the class 2 uplifted exploration expenditure and the class 1 augmented bond rate general expenditure”.

2  Subsection 34(3)

Repeal the subsection, substitute:

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

                     (a)  the class 2 uplifted exploration expenditure; and

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

                     (c)  the class 1 augmented bond rate exploration expenditure;

incurred by a person in a financial year in relation to a petroleum project exceeds the assessable receipts derived by the person in the financial year in relation to the project, an amount ascertained in accordance with the formula , where:

A i s so much of the excess as does not exceed the amount of the class 1 augmented bond rate exploration expenditure; and

B is the long-term bond rate in relation to the financial year;

shall be taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to the project on the first day of the next succeeding financial year.

3  Before paragraph 34A(4)(a)

Insert:

                    (aa)  the class 2 uplifted exploration expenditure; and

4  Paragraphs 35(3)(a) to (d)

Repeal the paragraphs, substitute:

                     (a)  the class 2 uplifted exploration expenditure; and

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

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

                     (d)  the class 2 uplifted general expenditure; and

                     (e)  the resource tax expenditure; and

                      (f)  the acquired exploration expenditure; and

                     (g)  the starting base expenditure; and

                     (h)  the class 2 GDP factor expenditure; and

                      (i)  the class 1 GDP factor expenditure; and

5  Paragraphs 35C(5)(d) and (f)

Repeal the paragraphs.

6  Subparagraphs 35D(3)(a)(iv) and (vi) and (4)(a)(iv) and (vi)

Repeal the subparagraphs.

7  Paragraphs 35E(3)(d) and (f)

Repeal the paragraphs.

[order of deductible expenditures]