Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where, in relation to a petroleum project and a year of tax, the assessable receipts derived by a person exceed the sum of:
(a) the deductible expenditure incurred by the person; and
(b) the total of the amounts (if any) transferred by the person to the project in relation to the year of tax under section 45A; and
(c) the total of the amounts (if any) transferred by another person to the person in relation to the project and the year of tax under section 45B;
the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount equal to the excess.
Note: because of subsection 45D(2), some transfers of expenditure are taken to be transfers of amounts compounded in accordance with Part 7 of Schedule 1.
Allowing for Greater Sunrise apportionments
(2) However, if the petroleum project is a Greater Sunrise project, the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount worked out using the following formula:
where:
"apportionment percentage figure" has the meaning given by subsection 2C(2).
"initial taxable profit" means the amount of taxable profit worked out under subsection (1) ignoring this subsection.
Deemed taxable profit for certain liquefied natural gas projects
(3) If:
(a) a person derives assessable petroleum receipts or assessable tolling receipts in relation to a petroleum project in a year of tax; and
(b) sales gas is, or will be, produced from some or all of the petroleum that is, or will be, recovered from the project; and
(c) the person is a party to an arrangement (within the meaning of section 50); and
(d) it is intended, as a result of carrying out the arrangement, that sales gas (which may or may not be the sales gas mentioned in paragraph (b)) is to be wholly or primarily processed into liquefied natural gas; and
(e) the person enters, or will enter, into such arrangements on a regular or consistent basis; and
(f) the person is not taken under subsection (1) or (2) to have a taxable profit in relation to the project and the year of tax; and
(g) the project is not excluded under subsection (5) for the year of tax;
the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount (the denied deduction amount ) equal to 10% of the assessable receipts derived by the person in relation to the project in the year of tax.
(4) However, if the project is a Greater Sunrise project, the person is taken for the purposes of this Act to have a taxable profit in relation to the project and the year of tax of an amount (the denied deduction amount ) worked out using the following formula:
where:
"apportionment percentage figure" has the meaning given by subsection 2C(2).
"initial taxable profit" means the amount of taxable profit worked out under subsection (3) ignoring this subsection.
(5) For the purposes of paragraph (3)(g), a project is excluded for a year of tax if:
(a) the year of tax is the first financial year in which assessable petroleum receipts are derived by the person in relation to the project or one of the subsequent 7 financial years; or
(b) the person incurs resource tax expenditure or starting base expenditure in the year of tax in relation to the project; or
(c) the person is not taken to incur any amounts under subsection 33(3), 34(3), 34A(4), 35(3), 35C(5), 35E(3), 35F(2) or 36(1) (including because of section 48 or 48A) in relation to the project:
(i) on the first day of the year of tax; or
(ii) on the first day of a previous year of tax (other than the first year of tax in which the person incurred deductible expenditure in relation to the project).