Commonwealth Consolidated Acts

PETROLEUM RESOURCE RENT TAX ASSESSMENT ACT 1987 - SECT 58K

Certain expenditure incurred on the day when section   58B election takes effect

  (1)   If:

  (a)   a person has made an election under section   58B (the current election ) with effect from the start of a particular financial year; and

  (b)   any of the following subparagraphs applies:

  (i)   under subsection   33(3), an amount is taken to be class 1 augmented bond rate general expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;

  (ii)   under subsection   34(3), an amount is taken to be class 1 augmented bond rate exploration expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;

  (iii)   under subsection   34A(4), an amount is taken to be class 2 uplifted general expenditure incurred by the person on the first day of the financial year;

  (iv)   under subsection   35C(5), an amount is taken to be resource tax expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;

  (vi)   under subsections   35E(1) and (1B), or under subsection   35E(3), an amount is taken to be starting base expenditure incurred by the person in relation to a petroleum project on the first day of the financial year;

  (vii)   the person has a starting base amount in relation to an interest in a petroleum project; and

  (c)   as a result of the current election, section   58D requires that the amount be translated into the applicable functional currency;

the amount is to be translated into the applicable functional currency at the exchange rate applicable when the current election took effect.

Class 2 uplifted exploration expenditure, class 2 GDP factor expenditure and transferable exploration expenditure

  (2)   For the purpose of working out:

  (a)   the class 2 uplifted exploration expenditure; or

  (b)   the class 2 GDP factor expenditure; or

  (c)   the transferable exploration expenditure;

that a person is taken to have incurred in a financial year in relation to a petroleum project, if:

  (d)   the person has made an election (the current election ) under section   58B; and

  (e)   the current election is in effect for the financial year; and

  (f)   section   58D requires that an amount of expenditure be translated into the applicable functional currency; and

  (g)   the expenditure was actually incurred before the current election took effect;

the expenditure is to be translated into the applicable functional currency at the exchange rate applicable when the current election took effect.