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

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8662

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, items 4 and 5, page 3 (line 14) to page 4 (line 26), omit the items, substitute:

4  Subsection 34A(4)

Insert:

uplift rate :

                     (a)  if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

                     (b)  otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]

(2)     Schedule 1, page 5 (after line 4), after item 6, insert:

6A  Subsection 33(3)

Repeal the subsection, substitute:

             (3)  For the purposes of subsection (1) or (2), if the class 1 augmented bond rate general expenditure incurred by a person in a financial year (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 1 augmented bond rate general expenditure worked out in accordance with the formula:

where:

Available excess means the amount of the excess.

uplift rate :

                     (a)  if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

                     (b)  otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

6B  Subsection 34(3)

Repeal the subsection, substitute:

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

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

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

incurred by a person in a financial year (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 1 augmented bond rate exploration expenditure worked out in accordance with the formula:

where:

Available excess means so much of the excess as does not exceed the class 1 augmented bond rate exploration expenditure.

uplift rate :

                     (a)  if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

                     (b)  otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]

(3)     Schedule 1, page 6 (after line 12), after item 20, insert:

20A  Subsection 35C(5) (formula)

Repeal the formula, substitute:

20B  Subsection 35C(5) (definition of Augmented bond rate )

Repeal the definition.

20C  Subsection 35C(5)

Insert:

uplift rate :

                     (a)  if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

                     (b)  otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

(4)     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”.

20E  Subsection 35D(4) (formula)

Repeal the formula, substitute:

20F  Subsection 35D(4) (definition of Augmented bond rate )

Repeal the definition.

20G  Subsection 35D(4)

Insert:

uplift rate :

                     (a)  if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

                     (b)  otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]

(5)     Schedule 1, page 6 (after line 14), after item 21, insert:

21A  Subsection 35E(3) (formula)

Repeal the formula, substitute:

21B  Subsection 35E(3) (definition of Augmented bond rate )

Repeal the definition.

21C  Subsection 35E(3)

Insert:

uplift rate :

                     (a)  if the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived—the uplift rate is the long-term bond rate in relation to the assessable year plus 1; or

                     (b)  otherwise—the uplift rate is the long-term bond rate in relation to the assessable year plus 1.05.

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]

(6)     Schedule 1, item 44, page 8 (line 24) to page 9 (line 2), omit paragraph 8(3)(a) of Schedule 1, substitute:

                     (a)  if the standard uplift expenditure year is the financial year immediately before the assessable year—multiply the incurred exploration expenditure amount in relation to the standard uplift expenditure year by the long-term bond rate in relation to the standard uplift expenditure year plus 1.05;

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]

(7)     Schedule 1, item 44, page 9 (lines 22 to 34), omit subparagraphs (i) to (iv) of the definition of uplift rate in paragraph 8(3)(b) of Schedule 1, substitute:

                              (i)  if the calculation year is 10 or more years after the standard uplift expenditure year—the GDP factor for the calculation year; or

                             (ii)  otherwise—the long-term bond rate in relation to the calculation year plus 1.05;

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]

(8)     Schedule 1, item 73, page 13 (line 33), omit “1.15”, substitute “1.05”.

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]

(9)     Schedule 1, item 73, page 14 (lines 1 to 17), omit paragraph 37(3)(a) of Schedule 1, substitute:

                     (a)  work out, in relation to the expenditure year and each later financial year ending before the transfer year, an amount in accordance with the formula:

                           

                            where:

                            transferred amount means:

                              (i)  in making the calculation in relation to the expenditure year—the amount of expenditure actually transferred; and

                             (ii)  in making the calculation in relation to a later financial year—the amount calculated under this paragraph in relation to the expenditure and the immediately preceding financial year.

                            uplift rate , for the financial year in relation to which the calculation is being made (the calculation year ), means:

                              (i)  if the calculation year is 10 or more years after the expenditure year—the GDP factor for the calculation year; and

                             (ii)  otherwise—the long-term bond rate in relation to the calculation year plus 1.05;

[long-term bond rate plus 1.05; long-term bond rate on and after 10 years]