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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

(Amendments to be moved by Senator Whish-Wilson, on behalf of the Australian Greens, in committee of the whole)

(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** :

** uplift rate** is the
long-term bond rate in relation to the assessable year plus
1; or

** 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** :

** uplift rate** is the
long-term bond rate in relation to the assessable year plus
1; or

** 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** :

** uplift rate** is the
long-term bond rate in relation to the assessable year plus
1; or

** 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

**), means:**

*calculation year*(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]