34Class 1 augmented bond rate exploration expenditure

#### 34 Class 1 augmented bond rate exploration expenditure (1) For the purposes of this Act, a reference to the class 1 augmented bond rate exploration expenditure incurred by a person in a financial year in relation to a petroleum project (not being a combined project, the Bass Strait project or the North West Shelf project) is a reference to the sum of: (a) any amount of class 1 exploration expenditure actually incurred by the person in relation to the project in the financial year, not being expenditure incurred more than 5 years before the production licence in relation to the project came into force; and (b) any amount that is taken by subsection (3), subsection 36(1) or Division 5 to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to the project in the financial year. (2) For the purposes of this Act, a reference to the class 1 augmented bond rate exploration expenditure incurred by a person in a financial year in relation to a combined project is a reference to the sum of: (a) any amount of class 1 exploration expenditure actually incurred by the person in relation to the project in the financial year (not being expenditure incurred before the project combination certificate in relation to the project came into force); (b) any amount that is taken by subsection (3), subsection 36(1) or Division 5 to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to the project in the financial year; and (c) where the financial year is the year in which the project combination certificate in relation to the project came into force—any amount of class 1 exploration expenditure, or any amount that is taken by subsection (3), paragraph 36 (1) (b) or Division 5 to be class 1 augmented bond rate exploration expenditure, incurred by the person in relation to the pre‑combination projects in relation to the project in the financial year. (3) For the purposes of subsection (1) or (2), where the sum of the class 1 augmented bond rate general expenditure and the class 1 augmented bond rate exploration expenditure incurred by a person in a financial year in relation to a petroleum project exceeds the assessable receipts derived by the person in the financial year in relation to the project, an amount ascertained in accordance with the formula , where: > A is so much of the excess as does not exceed the amount of the class 1 augmented bond rate exploration expenditure; and > B is the long‑term bond rate in relation to the financial year; shall be taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to the project on the first day of the next succeeding financial year. (4) In this section: > class 1 exploration expenditure means exploration expenditure actually incurred before 1 July 1990.