46Rebates against royalty payable

46 Rebates against royalty payable

46 Rebates against royalty payable

(Former clause 24AB (6)–(9) of 2007 Reg)

(1) For the purposes of section 91A of the Act, the holder of a petroleum title is eligible for a rebate of royalty payable by the holder in respect of petroleum recovered by that holder under that petroleum title, or any other petroleum title in the same project area as the title in respect of which royalty was paid or is payable, if—

(a) a contribution was made to an authorised fund by that holder of that title in respect of any petroleum title held by that holder in the project area, and

(b) any part of the project area to which the petroleum title relates is located within the area specified in the Ministerial order as the area to which the authorised fund relates, and

(c) refunds or rebates, or both, have not previously been paid or claimed in respect of the total amount of the contribution in the year.

(2) A rebate under this clause—

(a) first becomes payable at the end of the first full financial year (1 July to 30 June) in which the holder of the title recovers petroleum in relation to which royalty is payable under the authority of a production lease in the title’s project area (the first full production year), and

(b) is to be offset against the amount of royalties owing by the holder of the title for any title in the same project area in the relevant financial year.

(3) To avoid doubt, in the case where the holder of a petroleum title made a contribution to an authorised fund during the exploration phase that relates to the title, the rebate is carried over and credited against royalty payable in the first full production year referred to in subclause (2) (a).

(4) The amount that a holder of a petroleum title who is liable to pay royalty in a financial year is entitled to claim as a rebate on the royalty payment in the same year as a contribution is made, or that is carried over in accordance with subclause (3), is $1 for every $2 that the holder of the title contributed to an authorised fund, up to a maximum of 10% of the royalty payable by the holder of the title in relation to production in the title’s project area in that year.