35Class 1 GDP factor expenditure

#### 35 Class 1 GDP factor expenditure (1) For the purposes of this Act, a reference to the class 1 GDP factor 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 GDP factor expenditure actually incurred by the person in relation to the project in the financial year, 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 (3), subsection 36(1) or Division 5 to be class 1 GDP factor 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 GDP factor 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 that is taken by subsection (3), subsection 36(1) or Division 5 to be class 1 GDP factor expenditure incurred by the person in relation to the project in the financial year; and (b) where the financial year is the year in which the project combination certificate in relation to the project came into force—any amount that is taken by subsection (3), paragraph 36(1)(b) or Division 5 to be class 1 GDP factor expenditure incurred by the person in relation to the pre‑combination projects in relation to the combined project in the financial year. (3) For the purposes of subsection (1) or (2), 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; and (d) the class 1 GDP factor 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 AB, where: > A is so much of the excess as does not exceed the amount of the GDP factor expenditure; and > B is the class 1 GDP factor in relation to the financial year; shall be taken to be class 1 GDP factor 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 GDP factor expenditure means general project expenditure incurred in any financial year, or exploration expenditure incurred before 1 July 1990.