34AClass 2 uplifted general expenditure

#### 34A Class 2 uplifted general expenditure (1) For the purposes of this Act, a reference to the class 2 uplifted general 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 2 general project 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 earlier of the following: (i) the day specified in the production licence notice in relation to the project; (ii) the day the production licence was issued in relation to the project; and (b) any amount that is taken by subsection (4) or Division 5 to be class 2 uplifted general 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 2 uplifted general 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 2 general project 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); and (b) any amount that is taken by subsection (4) or Division 5 to be class 2 uplifted general expenditure incurred by the person in relation to the project in the financial year; and (c) if the financial year is the year in which the project combination certificate in relation to the project came into force—any amount of class 2 general project expenditure, or any amount that is taken by subsection (4) or Division 5 to be class 2 uplifted general expenditure, incurred by the person in relation to the pre‑combination projects in the financial year. (3) For the purposes of this Act, a reference to the class 2 uplifted general expenditure incurred by a person in a financial year in relation to the Bass Strait project or the North West Shelf project is a reference to the sum of: (a) any amount of class 2 general project expenditure actually incurred by the person in relation to the project in the financial year; and (b) any amount that is taken by subsection (4) or Division 5 to be class 2 uplifted general expenditure incurred by the person in relation to the project in the financial year. (4) For the purposes of subsection (1), (2) or (3), if the sum of: (a) the class 1 augmented bond rate general expenditure; and (b) the class 1 augmented bond rate exploration expenditure; and (c) the class 2 uplifted general expenditure; incurred by a person in a financial year (in this subsection called the assessable year) in relation to a petroleum project exceeds the assessable receipts derived by the person in the assessable year in relation to the project, the person is taken to incur, in relation to the project and on the first day of the next financial year, an amount of class 2 uplifted general expenditure worked out in accordance with the formula:  where: > Available excess means so much of the excess as does not exceed the class 2 uplifted general expenditure incurred in the assessable year. > uplift rate: (a) if: (i) the project is not a combined project; and (ii) the production licence in relation to the project is a post‑June 2019 licence; and (iii) any person derived assessable petroleum receipts in relation to the project at any time after the licence was granted; and (iv) the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived; the uplift rate is the long‑term bond rate in relation to the assessable year plus 1; or (b) if: (i) the project is a combined project; and (ii) one or more post‑June 2019 licences are, or have been, in force in relation to the project, or a pre‑combination project in relation to the project; and (iii) any person derived assessable petroleum receipts in relation to the project, or a pre‑combination project in relation to the project, at any time after the first such licence was granted; and (iv) the assessable year is 10 or more years after the first financial year in which such assessable petroleum receipts were derived; the uplift rate is the long‑term bond rate in relation to the assessable year plus 1; or (c) if paragraphs (a) and (b) do not apply—the uplift rate is the long‑term bond rate in relation to the assessable year plus 1.05. (5) In this section: > class 2 general project expenditure means general project expenditure actually incurred on or after 1 July 1990 (other than starting base expenditure). > post‑June 2019 licence: a production licence is a post‑June 2019 licence if the earlier of the following is on or after 1 July 2019: (a) if a notice was given under subsection 258(7) of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 in relation to the application for the licence—the date specified in the notice as the last date on which information was provided; (b) the day the production licence is granted.