Petroleum Resource Rent Tax Assessment Regulations 2024
31Netback price
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31 Netback price
(1) The netback price of an assessable gas for a taxpayer who is a participant in a relevant operation in a year of tax is:
A formula for working out the netback price of an assessable gas for a taxpayer
DCC (short for downstream capital costs) means the total amount of downstream capital costs incurred by the participants and allocated to the year of tax (see section 34).
DOC (short for downstream operating costs) means the total amount of downstream operating costs incurred by the participants in the year of tax (see section 34).
DPC (short for downstream personal costs) means the total amount of downstream personal costs of the taxpayer for the year of tax.
EPVal (short for end product value) means:
(a) if an election under section 55 has been made for the operation—the amount worked out under subsection (2) of this section; or
(b) otherwise—the total market value in the year of tax of:
(i) for a relevant GTL operation—the project liquid produced; or
(ii) for a relevant GTE operation—the project electricity produced.
QC (short for quantity coefficient) means:
(a) for a relevant operation that measures by volume—the volume coefficient for the year of tax; or
(b) for a relevant operation that measures by mass—the mass coefficient for the year of tax.
QTDG (short for quantity of taxpayer’s downstream gas) means the quantity, measured by volume or mass, of the assessable gas that was produced in the operation in the year of tax and:
(a) for a relevant GTL operation—processed into project liquid that the taxpayer was entitled to receive (including any of that gas that was used in that processing); or
(b) for a relevant GTE operation—consumed in the production of project electricity that the taxpayer was entitled to receive.
quantity of assessable gas means the quantity, measured by volume or mass, of the assessable gas that was produced in the operation in the year of tax.
(2) For the purposes of paragraph (a) of the definition of EPVal in subsection (1), work out the following for the taxpayer for the year of tax:
market value of taxpayer product means the market value of the quantity of taxpayer product.