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Offshore Petroleum and Greenhouse Gas Storage Amendment (Reporting of Gas Reserves) Bill 2018

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2016-2017-2018

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

SENATE

 

 

 

 

 

OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT

 (REPORTING OF GAS RESERVES) BILL 2018

 

 

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

(Circulated by authority of Senator Georgiou)



OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT (REPORTING OF GAS RESERVES) BILL 2018

 

OUTLINE

 

The Offshore Petroleum and Greenhouse Gas Storage Amendment (Reporting of Gas Reserves) Bill 2018 (the Bill) amends the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (the Act), to make it mandatory for petroleum producers in Australia to prepare and make available to the National Offshore Petroleum Titles Administrator ( Titles Administrator ) a ‘taxation transparency report’, as such report is defined in the Bill (refer to definition at paragraph 7 below).

NOTES ON CLAUSES

Clause 1 - Short Title

1.           Clause 1 is a formal provision specifying the short title of the Bill.

Clause 2 - Commencement

2.           The Bill's provisions are to commence on the day after it receives the Royal Assent.

Clause 3 - Schedules

3.                        Clause 3 provides that legislation specified in the Schedule is amended or repealed as is set out in the applicable items in the Schedule.

Schedule 1 - Amendments

4.                        This Schedule places obligations on both holders of petroleum retention leases and petroleum production licences to provide a ‘taxation transparency report’ to the Titles Administrator.

5.                        This Schedule also places an obligation on the Titles Administrator to set out the information contained in successive ‘taxation transparency reports’ in the Register (as ‘Register’ is defined in section 467 of the Act).

Item 1 - After subsection 136(22)

6.                        Section 136 of the Act specifies conditions of petroleum retention leases. Item 1 adds a further condition that the holder of a petroleum retention lease is to provide a ‘taxation transparency report’ to the Titles Administrator within 30 days of a petroleum retention lease being granted, as well as within 30 days after the expiry of any lease year.

 

7.                        A ‘taxation transparency report’ will provide the Titles Administrator with the following information:

 

(a)                     an estimate of the quantity of recoverable petroleum in all petroleum pools situated in the lease area;

 

(b)                    an estimate of the value of the recoverable petroleum mentioned in paragraph (a);

 

(c)                     the data upon which the estimates in paragraphs (a) and (b) are based; and

 

(d)                    all payments to the Commonwealth, a State or a Territory related to liabilities arising from the petroleum retention lease, including:

                                                           (i)                              relevant lease fees;

                                                         (ii)                              royalties; and

                                                       (iii)                              any tax (however described) payable under a law of the Commonwealth or of a State or Territory.

 

8.                        It is intended that the Titles Administrator release the information of any ‘taxation transparency report’ it receives, for parliamentary and public scrutiny.

Item 2 - After subsection 162(21)

 

9.                        Section 162 of the Act specifies conditions of petroleum production licences. Item 2 adds a further condition that the holder of a petroleum production licence is to provide a ‘taxation transparency report’ to the Titles Administrator within 30 days of a petroleum production licence lease being granted, as well as within 30 days after the expiry of any licence year.

 

10.                    The information required in the taxation transparency report is equivalent to the information required in relation to petroleum retention leases which is set out above.

 

Item 3 - Subsection 470(2) (after table item 2)

 

11.                    Section 470 of the Act outlines the information that the Titles Administrator must enter into the Register by way of a memorial.

 

12.                    Item 3 inserts a requirement for the Titles Administrator to set out in the Register the information contained in the most recent ‘taxation transparency report’.

 

13.                    It is intended that the Titles Administrator shall release the information of any ‘taxation transparency report’ it receives, for parliamentary and public scrutiny.

 

 

 



 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT

 (REPORTING OF GAS RESERVES) BILL 2018

 

This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .

 

Overview of the Bill

The Bill makes it mandatory for petroleum producers in Australia to prepare and make available to the Titles Administrator a ‘taxation transparency report’, as such report is defined in the Bill.

The Bill also makes it mandatory for the Titles Administrator to set out the information contained in a ‘taxation transparency report’ by way of memorial on the Register.

 

Human rights implications

This Bill does not engage any of the applicable rights or freedoms.

 

Conclusion

This Bill is compatible with human rights as it does not raise any human rights issues.

 

Senator Georgiou