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Taxation Laws Amendment Bill (No. 6) 2001
Schedule 1 Petroleum Resource Rent Tax

Part 1 Sales gas

Petroleum Resource Rent Tax Assessment Act 1987

1  Section 2 (definition of sales gas )

Repeal the definition, substitute:

sales gas means a substance:

                     (a)  which is in a gaseous state when at the temperature of 15°C and a pressure of one atmosphere; and

                     (b)  which consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non-hydrocarbons; and

                     (c)  the principal constituent of which is methane; and

                     (d)  which:

                              (i)  if it is to be used as a feedstock for conversion to another product—has been processed so that it is suitable for that use; or

                             (ii)  in any other case—has been processed so that it is suitable for direct consumption as energy.

2  At the end of paragraph 24(a)

Add “and”.

3  Paragraph 24(b)

After “marketable petroleum commodity”, insert “(other than sales gas)”.

4  Paragraph 24(c)

After “marketable petroleum commodity”, insert “(other than sales gas)”.

5  At the end of section 24

Add:

             ; and (d)  where any sales gas produced from petroleum recovered from the area or areas to which paragraph (a) applies becomes or became an excluded commodity by virtue of being sold:

                              (i)  if the sale is a non-arm’s length transaction—the amount worked out in accordance with the regulations; and

                             (ii)  in any other case—the consideration receivable, less any expenses payable, by the person in relation to the sale; and

                     (e)  where any sales gas produced from petroleum recovered from the area or areas to which paragraph (a) applies becomes or became an excluded commodity otherwise than by virtue of being:

                              (i)  sold; or

                             (ii)  treated or processed, or moved, for re-injection or destruction or for use in carrying on or providing operations, facilities or other things of a kind referred to in section 37, 38 or 39 in relation to the petroleum project;

                            the amount worked out in accordance with the regulations.

             (2)  In this section:

non-arm’s length transaction means a transaction where the Commissioner, having regard to any connection between the parties to the transaction or to any other relevant circumstances, is satisfied that the parties to the transaction are not dealing with each other at arm’s length in relation to the transaction.

6  Section 26

Omit “24(c)”, substitute “24(1)(c), 24(1)(e)”.

7  At the end of section 57

Add:

             (3)  This section does not apply to receipts determined under subparagraph 24(1)(d)(i).

8  After subsection 97(1A)

Insert:

       (1AA)  If the whole or a part of the assessable petroleum receipts that would be taken into account in working out the current period liability were determined under subparagraph 24(1)(d)(i) or paragraph 24(1)(e) (the special calculation provisions ), then, in calculating the current period liability under subsection (1A):

                     (a)  any assessable petroleum receipts determined under the special calculation provisions are to be excluded; and

                     (b)  the amount worked out in accordance with the regulations in respect of those assessable petroleum receipts is to be included.

9  After section 106

Insert:

106A   Review of certain decisions

                   A person who is dissatisfied with a decision made under this Act or the regulations in relation to the person, being a decision that is prescribed for the purposes of this section, may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .



 

Part 2 The 5 year rule

Petroleum Resource Rent Tax Assessment Act 1987

10  Paragraph 34A(1)(a)

Omit “the production licence in relation to the project came into force”, substitute “the date specified in the notice issued under subsection 41(3) of the Petroleum (Submerged Lands) Act 1967 in relation to the project”.

11  Clause 1 of Schedule 1 (paragraph (a) of the definition of relevant pre-commencement day )

Omit “the issue of the production licence in relation to the project”, substitute “the date specified in the notice issued under subsection 41(3) of the Petroleum (Submerged Lands) Act 1967 in relation to the project”.

12  Clause 1 of Schedule 1 (paragraph (b) of the definition of relevant pre-commencement day )

Omit “before the issue of the oldest production licence to which the project relates”, substitute “the earliest date specified in a notice issued under subsection 41(3) of the Petroleum (Submerged Lands) Act 1967 in relation to a production licence to which the project relates”.

Petroleum (Submerged Lands) Act 1967

13  At the end of section 41

Add:

             (3)  If the Designated Authority receives an application, or further information, the Designated Authority must, within 28 days, determine whether or not sufficient information has been received to determine the application. If the Designated Authority considers that sufficient information has been provided, the Designated Authority must issue the applicant with a notice to that effect specifying the last date on which information was provided.

             (4)  The issuing of a notice under subsection (3) does not prevent the Designated Authority from later requiring further information under subsection (2). However, the later request does not affect the notice under subsection (3).

             (5)  If an application is finalised without a licence being granted, any notice issued under subsection (3) in relation to that application is taken never to have been issued.

Examples:  An application may be finalised because it is withdrawn or because it is refused.

14  Transitional

If, before the commencement of this item, a notice was issued by a Designated Authority stating that sufficient information had been received to determine an application made under section 39A, 40 or 40A of the Petroleum (Submerged Lands) Act 1967 , then, for the purposes of that Act as amended by this Act:

                     (a)  that notice is taken to have been issued under subsection 41(3) of that Act; and

                     (b)  the date that the notice was issued is taken to be the date specified in the notice.

15  Application

The amendments made by this Part apply to projects in respect of which an application was made under section 39A, 40 or 40A of the Petroleum (Submerged Lands) Act 1967 after 23 December 1998.