2ACExclusion of incidental exploration etc. for petroleum

2AC Exclusion of incidental exploration etc. for petroleum

An authority or right under an Australian law is taken, for the purposes of this Act (other than this section), not to be: (a) an authority or right mentioned in paragraph (b) of the definition of exploration permit in section 2; or (b) an authority or right mentioned in paragraph (b) of the definition of retention lease in that section; if, to the extent that the authority or right permits activities of a kind mentioned in a subparagraph of that paragraph, it only permits them as an incident of exploration for resources other than petroleum.

52 After subsection 37(2)

Insert:

(2A) Despite subsection (1), if: (a) a payment made by a person would, apart from this subsection, be exploration expenditure incurred by the person in relation to a petroleum project; and (b) the person holds, under an Australian law, an authority or right (however described) that permits activities relating to resources other than petroleum to be carried on in the eligible exploration or recovery area in relation to the project; the payment is taken, for the purposes of this Act, to be exploration expenditure only to the extent that it would be reasonable to conclude that the purpose of the payment is exploring for petroleum in order to obtain a commercial return from petroleum. (2B) An authority or right referred to in paragraph (2A)(b) may be a production licence, exploration permit or retention lease, including a production licence to which the petroleum project relates. (2C) Subsections (2A) and (2B) are to avoid doubt, and do not extend by implication the scope of subsection (1).

Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013

53 Item 169 of Schedule 7

After “any of the”, insert “petroleum”.

Taxation Administration Act 1953

54 Section 3D

Repeal the section.

55 Subsection 8AAB(4) (table items 19A, 45A and 45B)

Repeal the items.

56 Subparagraph 8AAZLG(1)(b)(ii)

After “any of the”, insert “petroleum”.

57 Paragraph 8AAZLH(1)(b)

After “any of the”, insert “petroleum”.

58 Section 14ZQ (definition of starting base assessment)

Repeal the definition, substitute:

starting base assessment has the meaning given by clause 23 of Schedule 2 to the Petroleum Resource Rent Tax Assessment Act 1987.

59 Subsections 14ZW(1AB) and (1AC)

Repeal the subsections.

60 Paragraph 11‑1(g) in Schedule 1

Repeal the paragraph.

61 Paragraphs 12‑330(1)(b) and 12‑335(2)(a) in Schedule 1