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

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8664

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 2, page 18 (line 1) to page 32 (line 4), to be opposed .

[removing onshore projects from the petroleum resource rent tax]

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

Schedule 4 Ending transferability of exploration expenditure

Part 1 Amendment of the Petroleum Resource Rent Tax Assessment Act 1987

Petroleum Resource Rent Tax Assessment Act 1987

1  Section 2

Repeal the following definitions:

                     (a)  the definition of annual transfer ;

                     (b)  the definition of instalment transfer ;

                     (c)  the definition of instalment transfer charge period ;

                     (d)  the definition of instalment transfer excess ;

                     (e)  the definition of instalment transfer interest charge .

2  Section 2 (definition of related charge )           

Repeal the definition, substitute:

related charge means shortfall interest charge, or general interest charge, in relation to tax.

3  Section 2 (definition of transferable exploration expenditure )

Repeal the definition.

4  Subsections 10(5) and (6)

Repeal the subsections.

5  Subsection 22(1)

Repeal the subsection, substitute:

             (1)  Where, in relation to a petroleum project and a year of tax, the assessable receipts derived by a person exceed the sum of the deductible expenditure incurred by the person, the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount equal to the excess.

6  Paragraphs 32(e) and (f)

Repeal the paragraphs.

7  Sections 35A and 35B

Repeal the sections.

8  Paragraphs 35C(5)(e) and (f)

Repeal the paragraphs.

9  Subparagraphs 35D(3)(a)(v) and (vi) and (4)(a)(v) and (vi)

Repeal the subparagraphs.

10  Paragraphs 35E(3)(e) and (f)

Repeal the paragraphs.

11  Sections 36A and 36B (notes)

Omit “(before the GDP factor or the augmented bond rate is applied to the amount under Schedule 1)”.

12  Division 3A of Part V

Repeal the Division.

13  Subparagraph 48(1)(a)(i)

Omit “(other than class 2 augmented bond rate exploration expenditure or class 2 GDP factor expenditure)”.

14  Subparagraph 48(1)(a)(ia)

Repeal the subparagraph.

15  Subsection 48(2)

Repeal the subsection.

16  Paragraph 48A(5)(b)

Omit “(other than class 2 augmented bond rate exploration expenditure or class 2 GDP factor expenditure)”.

17  Paragraph 48A(5)(c)

Repeal the paragraph.

18  Sections 58G and 58H

Repeal the sections.

19  Subsection 58K(1) (heading)

Repeal the heading.

20  Subsection 58K(1)

Omit “(1)”.

21  Subsection 58K(2)

Repeal the subsection.

22  Subsection 58M(1) (heading)

Repeal the heading.

23  Subsection 58M(1)

Omit “(1)”.

24  Subsection 58M(2)

Repeal the subsection.

25  Section 58N (note)

Repeal the note.

26  Sections 58Q, 58R, 58RA and 58S

Repeal the sections.

27  Section 64

Omit “, deductible expenditure or transferable exploration expenditure”, substitute “or deductible expenditure”.

28  Paragraph 67(2)(e)

Omit “subsection 5(4), 20(8), 45A(3), 45B(3) or 45C(6)”, substitute “subsection 5(4) or 20(8)”.

29  Paragraph 85(1)(b)

Omit “tax;”, substitute “tax.”.

30  Paragraph 85(1)(c)

Repeal the paragraph.

31  Paragraph 85(2)(a)

Omit “, shortfall interest charge or instalment transfer interest charge”, substitute “or shortfall interest charge”.

32  Subparagraphs 85(2)(b)(i) and (ii)

Omit “, shortfall interest charge or instalment transfer interest charge”, substitute “or shortfall interest charge”.

33  Paragraph 97(1A)(aa)

Repeal the paragraph.

34  Paragraph 97(1A)(b)

Omit “amounts; and”, substitute “amounts.”.

35  Paragraph 97(1A)(c)

Repeal the paragraph.

36  Subsection 97(1A) (note)

Repeal the note.

37  Sections 98A to 98D

Repeal the section.

38  Schedule 1

Repeal the Schedule.

39  Subclauses 23(5A) and (5B) of Schedule 2

Repeal the subclauses.

Part 2 Application, transition and savings provisions

Division 1—Application of amendments to deductible expenditure and assessable receipts

40  Application—deductible expenditure and assessable receipts

(1)       The object of this item is to provide for the transfer of exploration expenditure incurred by a person in relation to a petroleum project to cease as of 1 July 2019.

(2)       The amendments made by this Schedule apply to the following:

                     (a)  an amount of deductible expenditure incurred, or taken to be incurred, in the financial year starting on 1 July 2019 or any later financial year;

                     (b)  an amount of assessable receipts derived, or taken to be derived, in the financial year starting on 1 July 2019 or any later financial year.

Division 2—General application of amendments

41   Object

The object of this Division is to ensure that, despite the repeals and amendments made by this Schedule, the full legal and administrative consequences of:

                     (a)  any act done or omitted to be done; or

                     (b)  any state of affairs existing; or

                     (c)  any period ending;

before 1 July 2019 can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken on or after that day.

42   Making and amending assessments, and doing other things, in relation to past matters

Even though an Act is amended by this Schedule, the amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument:

                     (a)  making or amending an assessment (including under a provision that is itself repealed or amended);

                     (b)  exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before 1 July 2019.

43   Saving of provisions about effect of assessments

If a provision or part of a provision that is repealed or amended by this Schedule deals with the effect of an assessment, the repeal or amendment is disregarded in relation to assessments made on, before or after 1 July 2019 in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before 1 July 2019.

[ending transferability of exploration expenditure]