Commonwealth Consolidated Acts

TAX AND SUPERANNUATION LAWS AMENDMENT (2013 MEASURES NO. 1) ACT 2013 - SCHEDULE 7

Part   1 -- Resource rent taxation

Income Tax Assessment Act 1997

1   Subsections   721 - 10(4) and (5)

Repeal the subsections, substitute:

  (4)   The following only apply in relation to tax - related liabilities that are due and payable because a choice has been made, under section   215 - 10 of the Minerals Resource Rent Tax Act 2012 , to apply Division   215 of that Act in relation to the * consolidated group:

  (a)   items   75, 80 and 85 of the table in subsection   ( 2);

  (b)   items   40 and 65 of that table to the extent that it relates to tax - related liabilities to which the items referred to in paragraph   ( a) apply.

  (5)   The following only apply in relation to tax - related liabilities that are due and payable because a choice has been made, under section   58N of the Petroleum Resource Rent Tax Assessment Act 1987 , to apply Division   8 of Part   V of that Act in relation to the * consolidated group:

  (a)   items   95, 100, 105 and 110 of the table in subsection   ( 2);

  (b)   items   40 and 65 of that table to the extent that they relate to tax - related liabilities to which the items referred to in paragraph   ( a) apply.

  (6)   Without limiting subsections   ( 4) and (5), in the application of this section in relation to a * MEC group because of section   719 - 2, the items referred to in those subsections also apply in relation to tax - related liabilities of the * provisional head company of the MEC group.

2   Subsection   995 - 1(1)

Insert:

"petroleum resource rent tax law" means:

  (a)   the Petroleum Resource Rent Tax Assessment Act 1987 ; and

  (b)   any Act that imposes * petroleum resource rent tax; and

  (c)   the Taxation Administration Act 1953 , so far as it relates to any Act covered by paragraphs   ( a) and (b); and

  (d)   any other Act, so far as it relates to any Act covered by paragraphs   ( a) to (c) (or to so much of that Act as is covered); and

  (e)   regulations under an Act, so far as they relate to any Act covered by paragraphs   ( a) to (d) (or to so much of that Act as is covered).

3   Subsection   995 - 1(1)

Insert:

"resource rent tax amount" means any debt or credit that arises directly under the * resource rent tax provisions.

4   Subsection   995 - 1(1)

Insert:

"resource rent tax provisions" means:

  (a)   the * MRRT law; and

  (b)   the * petroleum resource rent tax law;

other than * BAS provisions.

Minerals Resource Rent Tax Act 2012

5   Subsection   30 - 25(7)

Repeal the subsection, substitute:

  (7)   Operations or activities are resource marketing operations , for a mining project interest, to the extent that the operations or activities involve marketing, selling, shipping or delivering of:

  (a)   * taxable resources in relation to which a * mining revenue event mentioned in paragraph   30 - 15(1)(a) or (b) happens; or

  (b)   things produced using taxable resources in relation to which a mining revenue event mentioned in paragraph   30 - 15(1)(c) happens.

6   At the end of subsection   30 - 40(2)

Add:

Note:   The amount of that mining expenditure is adjusted if an adjustment arises under Division   160 in relation to that mining expenditure: see subsection   160 - 15(5).

7   Section   30 - 55

Before "An amount", insert "(1)".

8   At the end of section   30 - 55

Add:

  (2)   However, subsection   ( 1) does not apply if the only reason the amount does not relate to a particular * mining revenue event is that paragraph   30 - 20(2)(a) prevents the supply from being an * initial supply.

9   Subsection   35 - 5(1) (note)

Repeal the note, substitute:

Note:   Most of the amounts are covered by this section. However, the following amounts may also be included in a miner's mining expenditure:

(a)   amounts arising as a result of adjustments to take account of changes in circumstances (see Division   160);

(b)   amounts arising as a result of changed use of starting base assets (see section   165 - 55).

10   Subsection   45 - 10(1) (formula)

Repeal the formula, substitute:

11   Subsection   45 - 10(2) (example)

Repeal the example, substitute:

Example:   For the 2013 - 14 MRRT year, Pinder Mines Ltd has a total mining profit of $80 million, a group mining profit of $100 million, group MRRT allowances of $10 million and a taper amount of $50 million ($100 million - $50 million). The amount worked out using the formula in subsection   ( 1) is $22 million:((($75 million - $50 million) × 3 / 2 ) - $10 million) × 4 / 5 . Multiplying this amount by the MRRT rate gives Pinder Mines Ltd an offset for the year of $4.95 million.

12   Subsection   70 - 35(1) (note)

Repeal the note, substitute:

Note:   Most of the amounts are covered by this Division. However, the following amounts may also be included in a miner's pre - mining expenditure:

(a)   amounts arising as a result of adjustments to take account of changes in circumstances (see Division   160);

(b)   amounts arising as a result of changed use of starting base assets (see section   165 - 55).

13   Subsection   80 - 25(1)

Omit "a mining project interest that a miner had at that time", substitute "the mining project interest".

14   Subparagraphs   80 - 25(3)(b)(i) and (ii)

Repeal the subparagraphs, substitute:

  (i)   a valid choice has not been made under section   85 - 5 specifying the valuation approach for the mining project interest; or

  (ii)   a starting base assessment (within the meaning of subitem   15(3) of Schedule   4 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012 ) does not cover the property or right; or

  (iii)   immediately before 1   July 2012, the property or right was not * held by the * entity that, at that time, had the mining project interest (or held the * pre - mining project interest from which the mining project interest * originated); or

  (iv)   the property or right did not exist before 1   July 2012.

15   After subsection   80 - 25(3)

Insert:

  (3A)   For the purposes of subparagraphs   ( 3)(b)(iii) and (iv), if:

  (a)   the asset is, or includes, the rights and interests that constitute the mining project interest; and

  (b)   the mining project interest did not exist immediately before 1   July 2012; and

  (c)   the mining project interest * originates from one or more * pre - mining project interests, or one or more parts of pre - mining project interests, that existed immediately before 1   July 2012;

assume that the mining project interest is a continuation of the pre - mining project interest.

16   Subsection   80 - 40(1)

Omit "in which a * starting base loss arises", substitute "for which a * starting base loss arises".

17   Subsection   80 - 45(1) ( paragraph   ( b) of the definition of uplift factor )

Repeal the paragraph, substitute:

  (b)   if, under Division   85, the market value approach is the valuation approach for the mining project interest:

    where:

    relevant financial year is:

  (i)   if the * MRRT year is a * financial year--the MRRT year; or

  (ii)   if the MRRT year is not a financial year--the financial year corresponding to the MRRT year.

18   Paragraph 80 - 50(1)(b)

Omit "starting base losses for the mining project interest in the year", substitute "starting base losses for the mining project interest for the year".

19   At the end of subsection   90 - 25(1)

Add:

Note:   Initial base values are separately assessed under Division   155 in Schedule   1 to the Taxation Administration Act 1953 . Those assessed values are used in working out starting base allowances in all assessments of MRRT liabilities: see item   15 of Schedule   4 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012 .

20   At the end of subsection   90 - 40(1)

Add:

Note 3:   Initial base values are separately assessed under Division   155 in Schedule   1 to the Taxation Administration Act 1953 . Those assessed values are used in working out starting base allowances in all assessments of MRRT liabilities: see item   15 of Schedule   4 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012 .

21   Subsection   90 - 45(1)

Omit all the words after "assume that", substitute "the mining project interest is a continuation of the pre - mining project interest".

22   After subsection   90 - 45(1)

Insert:

  (1A)   Without limiting subsection   ( 1), assume also that the * market value of the asset on 1   May 2010 was an amount equal to the market value, on that day, of the rights and interests that constitute the * pre - mining project interest or pre - mining project interests, or the part or parts, from which the mining project interest * originates.

23   Subsection   90 - 45(2)

Omit "this section", substitute " subsection   ( 1A)".

24   After subsection   90 - 55(5)

Insert:

  (5A)   For the purposes of subsections   ( 4) and (5), if:

  (a)   the asset is, or includes, the rights and interests that constitute the mining project interest; and

  (b)   the mining project interest did not exist on 1   May 2010; and

  (c)   the mining project interest * originates from one or more * pre - mining project interests, or one or more parts of pre - mining project interests, that existed just before 2   May 2010;

assume that the mining project interest is a continuation of the pre - mining project interest.

25   Subsection   90 - 65(5)

Repeal the subsection   ( including the note), substitute:

  (5)   However, if one or more of the following applies:

  (a)   there have been reductions to a * starting base loss relating to the * starting base asset, for that * MRRT year or an earlier MRRT year, under subsection   80 - 40(3) or (4);

  (b)   there have been reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, under paragraph   115 - 15(2)(b);

  (c)   there has been no starting base loss for that MRRT year, or no starting base loss for an earlier MRRT year, for the mining project interest to which the asset relates, because of paragraph   115 - 15(2)(a), 130 - 15(a) or (b) or 200 - 5(b) or (c);

the amount included in the miner's * mining revenue under subsection   ( 4) is reduced by the following:

where:

"excess amount" is the amount of the excess mentioned in subsection   ( 4).

"sum of reductions" is the sum of:

  (a)   any reductions to a * starting base loss relating to the * starting base asset, for that * MRRT year or an earlier MRRT year, under subsection   80 - 40(3) or (4); and

  (b)   any reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, under paragraph   115 - 15(2)(b); and

  (c)   any starting base losses, for that MRRT year or an earlier MRRT year, that paragraph   115 - 15(2)(a), 130 - 15(a) or (b) or 200 - 5(b) extinguished, or paragraph   200 - 5(c) prevented from arising, to the extent that they related (or would have related) to the asset.

"total decline" is the sum of the declines in value of the asset that have happened during that * MRRT year or any earlier MRRT year.

Note 1:   Reductions happen under subsection   80 - 40(3) or (4) if the asset is used, installed for use, or constructed for use:

(a)   for a purpose other than carrying on upstream mining operations relating to the mining project interest; or

(b)   in connection with excluded expenditure.

Note 2:   Starting base losses are reduced under paragraph   115 - 15(2)(b) if a miner chooses to treat a mining project interest as having combined with another despite non - compliance with section   115 - 35.

Note 3:   Starting base losses are extinguished, or prevented from arising, if:

(a)   under paragraph   115 - 15(2)(a), a miner chooses to treat a mining project interest as having combined with another despite non - compliance with section   115 - 35; or

(b)   under paragraph   130 - 15(a) or (b), the suspension day for the mining project interest happens; or

(c)   under paragraph   200 - 5(b) or (c), a miner chooses to use the simplified MRRT method.

26   Paragraph 95 - 20(2)(a)

Omit "has", substitute " * holds".

27   Subsection   95 - 25(1)

After "cannot be applied", insert "under that section".

28   Paragraphs 95 - 30(1)(a) and (2)(a)

Omit "entity", substitute " * entity".

29   Paragraph 115 - 15(2)(b)

Repeal the paragraph, substitute:

  (b)   the starting base loss for the combined interest for an * MRRT year is reduced by the amount of any declines in value, for the year, of * starting base assets that:

  (i)   relate to a constituent interest; and

  (ii)   do not comply with section   115 - 35.

30   At the end of section   115 - 15

Add:

  (3)   However, if:

  (a)   an existing pre - mining loss does not comply with section   115 - 25 because section   95 - 25 or 115 - 55 partly prevents the existing pre - mining loss from being applied in working out a * transferred pre - mining loss allowance; and

  (b)   there is no other reason why the loss does not comply with section   115 - 25;

the loss is extinguished under paragraph   ( 2)(a) only to the extent that section   95 - 25 or 115 - 55 prevents the existing pre - mining loss from being so applied.

31   After paragraph   115 - 25(a)

Insert:

  (aa)   section   95 - 25 (cap on available pre - mining losses) does not wholly or partly prevent the existing pre - mining loss from being so applied; and

32   Paragraph 115 - 25(b)

After "section   115 - 55 does not", insert "wholly or partly".

33   Subsections   115 - 55(1) and (2)

Repeal the subsections, substitute:

  (1)   If:

  (a)   a * pre - mining loss relates to:

  (i)   a mining project interest other than the combined interest (or any of the constituent interests); or

  (ii)   a * pre - mining project interest; and

  (b)   the loss arose in relation to an * MRRT year preceding the combined interest coming into existence; and

  (c)   in relation to at least one of the constituent interests--section   95 - 25 (cap on available pre - mining losses) would have, to any extent, prevented the loss from being applied in working out a * transferred pre - mining loss allowance for the constituent interest for the year (if the combined interest had not existed);

the loss cannot be applied in working out a transferred pre - mining loss allowance for the combined interest for an MRRT year to the extent that that section would have prevented the loss from being so applied in working out transferred pre - mining loss allowances for all the constituent interests for the year (if the combined interest had not existed).

  (2)   If:

  (a)   a * pre - mining loss relates to the combined interest (or any of the constituent interests); and

  (b)   the loss arose in relation to an * MRRT year preceding the combined interest coming into existence; and

  (c)   in relation to at least one of the constituent interests--section   95 - 25 (cap on available pre - mining losses) would have, to any extent, prevented the loss from being applied in working out a * transferred pre - mining loss allowance for another mining project interest (other than the combined interest or any of the constituent interests) for the year if:

  (i)   the combined interest had not existed; and

  (ii)   the loss had related to the constituent interest;

the loss cannot be applied in working out a transferred pre - mining loss allowance for the other interest for an MRRT year to the extent that that section would have prevented the loss from being so applied in working out transferred pre - mining loss allowances for all the constituent interests for the year (if the combined interest had not existed).

34   At the end of subsection   120 - 10(4)

Add:

  ; (e)   if the transfer happens because of the operation of section   120 - 25--the amount of the * pre - mining loss cap (if any) for the original interest.

35   Subsection   120 - 10(4) (note)

Repeal the note, substitute:

Note 1:   Under section   120 - 25, the start of a mining venture may be taken to be a mining project transfer.

Note 2:   If the original miner's MRRT year starts before the new miner's MRRT year, the effect of this provision is that amounts from before the start of the new miner's MRRT year are taken into account for the new miner in the new miner's MRRT year.

36   At the end of subsection   125 - 10(4)

Add:

  ; (e)   if the new miner is the same * entity as the original miner--the amount of the * pre - mining loss cap (if any) for the original interest.

37   Subsection   125 - 10(4) (note)

Repeal the note, substitute:

Note 1:   If the new miner is not the same entity as the original miner, a new pre - mining loss cap arises for the new interest under section   95 - 30.

Note 2:   If the original miner's MRRT year starts before a new miner's MRRT year, the effect of this provision is that amounts from before the start of the new miner's MRRT year are taken into account for the new miner in the new miner's MRRT year.

38   Paragraph 140 - 10(2)(c)

Omit "does not apply", substitute "is taken to be satisfied".

39   At the end of subsection   145 - 15(2)

Add:

  ; (e)   if the transfer happens because of the operation of section   145 - 30--the amount of the * pre - mining loss cap (if any) for the original interest.

40   Subsection   145 - 15(2) (note)

Repeal the note, substitute:

Note 1:   Under section   145 - 30, a mining project interest originating from a pre - mining project interest may be taken to be a pre - mining project transfer.

Note 2:   If the original explorer's MRRT year starts before the new explorer's MRRT year, the effect of this provision is that amounts from before the start of the new explorer's MRRT year are taken into account for the new explorer in the new explorer's MRRT year.

41   Subsection   145 - 20(2)

Omit "section   30 - 40", substitute "sections   30 - 40 and 70 - 40".

42   Subsection   145 - 20(3)

Omit "section   35 - 35", substitute "sections   35 - 35 and 70 - 35".

43   At the end of subsection   150 - 15(2)

Add:

  ; (e)   if the new explorer is the same * entity as the original explorer--the amount of the * pre - mining loss cap (if any) for the original interest.

Note:   If the new explorer is not the same entity as the original explorer, a new pre - mining loss cap arises for the new interest under section   95 - 30.

44   Subsection   150 - 15(4) (heading)

Repeal the heading, substitute:

Exception for new explorer that is the same entity as original explorer

45   Subsection   150 - 20(2)

Omit "section   30 - 40", substitute "sections   30 - 40 and 70 - 40".

46   Subsection   150 - 20(3)

Omit "section   35 - 35", substitute "sections   35 - 35 and 70 - 35".

47   Subsection   150 - 30(2) (note 2)

Omit "mining project transfer", substitute "pre - mining project transfer".

48   Subsection   155 - 10(3)

Repeal the subsection, substitute:

  (3)   In determining, for the purposes of subsection   ( 2), whether an additional area is insignificant, assume that the additional area includes any other such additional areas that have been included in the * project area for the * pre - mining project interest because of a previous application of that subsection.

49   At the end of section   160 - 15

Add:

  (5)   If this Division has given rise to a mining adjustment in relation to an original amount of * mining expenditure to which subsection   30 - 40(2) applies, that subsection has effect as if:

  (a)   the adjustment mentioned in column 3 of the table in subsection   ( 1) of this section had not been made; and

  (b)   the original amount had instead been increased or decreased (as the case requires) as mentioned in column 2 of that table by the amount of the adjustment.

  (6)   If this Division has given rise to a mining adjustment in relation to an original amount of * pre - mining expenditure to which paragraph   70 - 40(2)(b) applies, and to which subsection   30 - 40(2) would have applied if the pre - mining expenditure had been mining expenditure for a mining project interest, that paragraph has effect as if:

  (a)   the adjustment mentioned in column 3 of the table in subsection   ( 1) of this section had not been made; and

  (b)   the original amount had instead been increased or decreased (as the case requires) as mentioned in column 2 of that table by the amount of the adjustment.

50   Subsection   165 - 15(1)

Repeal the subsection, substitute:

  (1)   If there is a * starting base adjustment amount, for a * starting base asset for an * MRRT year, and:

  (a)   an amount of a * starting base loss for that MRRT year or any earlier MRRT year has been reduced because of a reduction under subsection   80 - 40(3) or (4) relating to the asset; or

  (b)   there have been reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, because of paragraph   115 - 15(2)(b); or

  (c)   there has been no starting base loss for that MRRT year, or no starting base loss for an earlier MRRT year, for the mining project interest to which the asset relates, because of paragraph   115 - 15(2)(a), 130 - 15(a) or (b) or 200 - 5(b) or (c);

reduce the starting base adjustment amount in accordance with subsection   ( 2).

Note 1:   Reductions happen under subsection   80 - 40(3) or (4) if the asset is used, installed for use, or constructed for use:

(a)   for a purpose other than carrying on upstream mining operations relating to the mining project interest; or

(b)   in connection with excluded expenditure.

Note 2:   Starting base losses are reduced under paragraph   115 - 15(2)(b) if a miner chooses to treat a mining project interest as having combined with another despite non - compliance with section   115 - 35.

Note 3:   Starting base losses are extinguished, or prevented from arising, if:

(a)   under paragraph   115 - 15(2)(a), a miner chooses to treat a mining project interest as having combined with another despite non - compliance with section   115 - 35; or

(b)   under paragraph   130 - 15(a) or (b), the suspension day for the mining project interest happens; or

(c)   under paragraph   200 - 5(b) or (c), a miner chooses to use the simplified MRRT method.

51   Subsection   165 - 15(2) (definition of sum of reductions )

Repeal the definition, substitute:

"sum of reductions" is the sum of:

  (a)   any reductions to a * starting base loss relating to the * starting base asset, for that * MRRT year or an earlier MRRT year, under subsection   80 - 40(3) or (4); and

  (b)   any reductions to a starting base loss relating to the asset, for that MRRT year or an earlier MRRT year, under paragraph   115 - 15(2)(b); and

  (c)   any starting base losses, for that MRRT year or an earlier MRRT year, that paragraph   115 - 15(2)(a), 130 - 15(a) or (b) or 200 - 5(b) extinguished, or paragraph   200 - 5(c) prevented from arising, to the extent that they related (or would have related) to the asset.

52   Subsections   165 - 25(3) and 165 - 30(1)

After "the starting base adjustment", insert "(expressed as a positive amount)".

53   Paragraph 165 - 30(2)(c)

After "the starting base adjustment", insert "(expressed as a positive amount)".

54   Subsection   165 - 30(2)

After "the starting base adjustment" (last occurring), insert "(expressed as a positive amount)".

55   Paragraph 175 - 15(1)(b)

Repeal the paragraph, substitute:

  (b)   have reached, during the MRRT year, the form in which the resources are intended to be:

  (i)   supplied or exported as mentioned in paragraph   30 - 15(1)(a) or (b); or

  (ii)   used to produce something, but not after having been supplied or exported as mentioned in paragraph   30 - 15(1)(a) or (b).

56   Subsection   180 - 5(1)

After " * starting base assets", insert "(and all property or rights that are expected to be starting base assets after the time mentioned in subsection   80 - 25(2))".

57   Section   190 - 1

Omit "a miner", substitute "an entity".

58   Section   190 - 1

Omit "a miner's", substitute "an entity's".

59   Section   190 - 5

Omit "miners", substitute " * entities".

60   Section   190 - 10

Omit "a miner", substitute "an * entity".

61   Subsection   190 - 15(1)

Omit "a miner's", substitute "an * entity's".

62   Subsection   190 - 15(2) (example)

Omit "A miner", substitute "An entity".

63   Subsection   190 - 15(3) (example)

Omit "A miner", substitute "An entity".

64   Subsection   190 - 15(4) (example)

Omit "A miner", substitute "An entity".

65   Subsection   190 - 20(2) (example)

Omit "$6.26 million", substitute "$7.97 million".

66   Subsection   190 - 20(2) (example)

Omit "$2.06 million", substitute "$2.62 million".

67   Subsection   190 - 20(2) (example)

Omit "$3.57 million", substitute "$3.01 million".

68   After subsection   200 - 15(1)

Insert:

  (1A)   For the purposes of subsection   ( 1), assume that, during the whole of the * MRRT year, the entity has a particular mining project interest to the extent (if any) that the entity has the interest immediately before the end of the year.

Example:   If, during the MRRT year, a mining project interest that the entity had at the start of the year was subject to a mining project split with another entity (and they retained their new interests for the rest of the year), the entity's profit under subsection   ( 1) is worked out as if the entity's split percentage applied for the whole year.

  If the other entity's profit under subsection   ( 1) is relevant, it is worked out as if the other entity's split percentage applied for the whole year.

69   Subsection   215 - 10(2)

Omit "or 719 - 76", substitute ", 719 - 76 or 719 - 78".

70   Subsections   255 - 20(1) and (2)

Omit "paragraphs 255 - 10(1)(a) to (d)", substitute "paragraphs 255 - 10(a) to (d)".

71   Section   300 - 1 (definition of MRRT year )

Repeal the definition, substitute:

"MRRT year" has the meaning given by sections   10 - 25, 190 - 10 and 190 - 15.

Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012

72   After item   1 of Schedule   4

Insert:

1A   Administration of this Schedule

The Commissioner has the general administration of this Schedule.

73   Paragraph 10(a) of Schedule   4

Omit "a miner", substitute "an entity".

74   At the end of subitem   15(1) of Schedule   4

Add:

  ; and (c)   the Commissioner were the recipient mentioned in column 2 of that table in relation to that starting base return.

75   At the end of item   15 of Schedule   4

Add:

(3)   Without limiting subitem   ( 1), from the first time an assessment (a general assessment ) is made of the MRRT payable by an entity for an MRRT year (or that no MRRT is payable by the entity for the year):

  (a)   an assessment (a starting base assessment ) that the Commissioner is treated as having made because of subsection   155 - 15(1) in Schedule   1 to the Taxation Administration Act 1953 in relation to that base value is taken, for the purposes of this Act, to form part of the general assessment; and

  (b)   any objection against the general assessment under section   155 - 90 in Schedule   1 to that Act must not relate to matters to which the starting base assessment relates; and

  (c)   any amendment of the general assessment under Subdivision   155 - B in that Schedule must not relate to matters to which the starting base assessment relates, except to the extent necessary to give effect to the starting base assessment (including the starting base assessment as amended).

(4)   Without limiting sections   155 - 45 to 155 - 60 in Schedule   1 to that Act, the Commissioner may amend a general assessment at any time to the extent necessary to give effect to the starting base assessment (including the starting base assessment as amended).

Petroleum Resource Rent Tax Assessment Act 1987

76   Title

Omit " relating to the assessment and collection of the tax imposed by the Petroleum Resource Rent Tax Act 1987 ", substitute " about petroleum resource rent tax ".

77   Section   2 (definition of acquisition )

Repeal the definition, substitute:

"acquisition" :

  (a)   in clauses   18 and 19 of Schedule   2--has the meaning given by subclauses   18(7) and (8) of that Schedule; and

  (b)   otherwise--has the meaning given by section   195 - 1 of the GST Act.

78   Section   2 (definition of created )

Repeal the definition, substitute:

"created" , in relation to a consolidated group or a MEC group, has the meaning given by subsection   995 - 1(1) of the Income Tax Assessment Act 1997 .

79   Section   2

Insert:

"notional tax amount" has the meaning given by section   97.

80   Subsections   4A(1) and (3)

Omit "in relation to" (first occurring), substitute "in, or in relation to,".

81   Paragraphs 4A(3)(b) and (c)

Repeal the paragraphs, substitute:

  (b)   if the time is a time before the project combination certificate came into force:

  (i)   any production licence areas in relation to pre - combination projects relating to the combined project; or

  (ii)   any pre - licence areas in relation to any of those pre - combination projects.

82   Subsection   4A(4)

Omit "in relation to" (first occurring), substitute "in, or in relation to,".

83   Subsection   4A(4)

After "recovered from", insert "any of".

84   Sections   4B and 4C

Omit "in relation to", substitute "in, or in relation to,".

85   Subsection   10(4) (heading)

Repeal the heading, substitute:

Translation rule--eligible real expenditure

86   Paragraph 10(4)(a)

Omit "deductible expenditure", substitute "eligible real expenditure".

87   Subparagraph 20(2)(a)(iii)

Repeal the sub paragraph, substitute:

  (iii)   if the licence relates to an onshore petroleum project and was granted on or after 1   July 2012--the start of 1   January 2013;

  (iv)   if the licence relates to an onshore petroleum project and was granted before 1   July 2012--the start of 1   July 2013; or

88   Subsection   35C(5)

Omit " subsection   ( 1), (2) or (3)", substitute " subsection   ( 1) or (2)".

89   After subsection   35E(1)

Insert:

  (1A)   However, if:

  (a)   the petroleum project is the North West Shelf project; and

  (b)   in the starting base financial year for the project or in a later financial year, a production licence relating to the project comes into existence; and

  (c)   the production licence is derived from an exploration permit, or a retention lease, that existed at the start of 1   July 2012;

subsection   ( 1) has effect as if the starting base expenditure incurred by the person in that financial year in relation to the project includes an amount equal to the person's starting base expenditure in that financial year in relation to the petroleum project that would, but for subsection   19(1B), relate to that production licence.

  (1B)   For the purposes of this Act, starting base expenditure incurred by a person in the starting base financial year is taken to be incurred on the first day of the starting base financial year.

90   Subsection   35E(4)

Omit "The reference in paragraph   ( 1)(a) to the starting base financial year for a petroleum project is a reference to", substitute "References in paragraph   ( 1)(a) and subsections   ( 1A) and (1B) to the starting base financial year for a petroleum project are references to".

91   Subsection   41(2)

Repeal the subsection, substitute:

  (2)   This section does not apply if the other person carries on or provides the operations, facilities or other things as part of the processing of:

  (a)   internal petroleum in relation to the petroleum project; or

  (b)   external petroleum in relation to a petroleum project other than the project to which the operations, facilities or other things referred to in subsection   ( 1) relate.

92   Paragraph 45(2)(b)

Repeal the paragraph, substitute:

  (b)   if paragraph   ( a) does not apply--at any time on or after 2   May 2010, including a time before the project commences or after the project ceases.

93   Subsection   45(5) (table item   2)

Omit "the day on which that acquisition occurred", substitute "the day, on or after 1   July 2007, on which the person first commenced to hold the interest, or was acquired, as the case requires".

94   At the end of section   45

Add:

Transferred expenditure relating to onshore petroleum projects or the North West Shelf project

  (8)   To avoid doubt, eligible real expenditure that a person may incur in relation to an onshore petroleum project, or the North West Shelf project, may include expenditure that a person is taken to have incurred in relation to the project, before or after the commencement of this section, because of section   48 or 48A.

  (9)   However, if the person is taken to have incurred the expenditure because of the application of section   48 or 48A in relation to a transaction entered into before 1   July 2012, subsection   48(3) or 48A(11) (as the case requires) does not apply in relation to the transaction.

95   Subparagraph 48(1)(a)(ib)

Omit "does not apply in relation to the financial year in which the transaction is or was entered into", substitute "did not apply immediately before the transfer time".

96   Subsection   48(3)

Omit "later", substitute "latest".

97   At the end of subsection   48(3)

Add:

  ; (c)   if the project is an onshore petroleum project, or the North West Shelf project, and the transaction was entered into between 1   July 2012 and 30   June 2013--31   August 2013.

98   Subparagraph 48A(5)(ca)(i)

Repeal the subparagraph, substitute:

  (i)   section   35E did not apply immediately before the transfer time; and

99   Subsection   48A(11)

Omit "later", substitute "latest".

100   At the end of subsection   48A(11)

Add:

  ; (c)   if the project is an onshore petroleum project, or the North West Shelf project, and the transaction time occurred between 1   July 2012 and 30   June 2013--31   August 2013.

101   Subsection   57(3)

Omit "subparagraph   24(1)(d)(i)", substitute "paragraph   24(1)(d)".

102   Subsections   58B(1), (4), (5) and (6), 58C(1) and (2) and 58D(1)

Omit "year of tax" (wherever occurring), substitute "financial year".

103   Section   58F (heading)

Repeal the heading, substitute:

58F   Translation rule--eligible real expenditure

104   Paragraph 58F(a)

Omit "deductible expenditure", substitute "eligible real expenditure".

105   Subsections   58J(1) and (3)

Omit "year of tax" (wherever occurring), substitute "financial year".

106   Paragraphs 58J(4)(b) and (c)

Omit "years of tax", substitute "financial years".

107   Subsection   58J(4)

Omit "year of tax", substitute "financial year".

108   Paragraphs 58J(5)(b) and (c)

Omit "years of tax", substitute "financial years".

109   Subsection   58J(5)

Omit "year of tax", substitute "financial year".

110   Subsections   58J(6), (7), (8), (9), (10) and (11)

Omit "year of tax" (wherever occurring), substitute "financial year".

111   Subsection   58K(1) (heading)

Repeal the heading, substitute:

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

112   Paragraphs 58K(1)(a) and (b)

Omit "year of tax" (wherever occurring), substitute "financial year".

113   Paragraph 58K(1)(b)

Omit "and".

114   After subparagraph   58K(1)(b)(iii)

Insert:

  (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;

  (v)   under subsection   35D(3) or (4), an amount is taken to be acquired exploration 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)   under Division   1 of Part   3 of Schedule   2, an amount is the starting base amount that the person has in relation to an interest in a petroleum project; and

115   Subsections   58K(2) and 58L(1) and (4)

Omit "year of tax" (wherever occurring), substitute "financial year".

116   Subsection   58M(1) (heading)

Repeal the heading, substitute:

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

117   Paragraphs 58M(1)(a), (b) and (c)

Omit "year of tax" (wherever occurring), substitute "financial year".

118   Paragraph 58M(1)(c)

Omit "and".

119   After subparagraph   58M(1)(c)(iii)

Insert:

  (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 next financial year;

  (v)   under subsection   35D(3) or (4), an amount is taken to be acquired exploration expenditure incurred by the person in relation to a petroleum project on the first day of the next 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 next financial year;

  (vii)   under Division   1 of Part   3 of Schedule   2, an amount is the starting base amount that the person has in relation to an interest in a petroleum project; and

120   Subsection   58M(1)

Omit "year of tax" (last occurring), substitute "financial year".

121   Subsection   58M(2)

Omit "year of tax" (wherever occurring), substitute "financial year".

122   Subsection   58N(2)

Omit "or 719 - 76", substitute ", 719 - 76 or 719 - 78".

123   Section   58P

Repeal the section, substitute:

58P   Single entity rule

  (1)   If a person:

  (a)   is a subsidiary member of the consolidated group or MEC group for any period in which the choice is in effect; and

  (b)   holds an interest in an onshore petroleum project;

the person and any other subsidiary member of the group that holds an interest in the project are taken, for the purposes covered by subsection   ( 2), to be parts of the head company or provisional head company of the group, rather than separate persons, during that period.

Note:   Despite the single entity rule, a subsidiary member of the group is jointly and severally liable for a liability of the head company: see section   721 - 10 of the Income Tax Assessment Act 1997 .

  (2)   The purposes covered by this subsection are:

  (a)   working out, for the purposes of this Act, the head company's or provisional head company's interests, and any subsidiary member's interests, in onshore petroleum projects for any financial year in which any of the period occurs or any later financial year; and

  (b)   working out any tax that is payable in relation to such an interest for any such financial year; and

  (c)   working out assessable receipts and deductible expenditure arising in relation to such an interest for any such financial year; and

  (d)   working out the head company's or provisional head company's notional tax amount, and any subsidiary member's notional tax amount, in relation to an instalment period in any such financial year; and

  (e)   working out excess closing - down expenditure arising in relation to such an interest.

Examples:   The following are some examples of consequences of the single entity rule:

(a)   a subsidiary member's interest in an onshore petroleum project becomes a part of the head company's or provisional head company's aggregated interest in the project;

(b)   a subsidiary member's assessable receipts and deductible expenditure relating to the interest are inherited by the head company or provisional head company along with the interest;

(c)   a subsidiary member's liability to pay tax in relation to a period before becoming a member of the group (and any interest charges associated with such a liability) remains a liability of the subsidiary member and does not become a liability of the head company or provisional head company.

124   Section   58Q

Omit all the words after "section   48 applies", substitute:

    as if, at that time:

  (a)   each of the person's interests in onshore petroleum projects just before that time had been transferred to the head company or provisional head company; and

  (b)   the head company or provisional head company had given the consideration referred to in paragraph   48(1A)(c).

125   Subsection   58R(1)

After "as if", insert ", at that time,".

126   At the end of subsection   58R(1)

Add ", and as if the person had given the consideration referred to in paragraph   48(1A)(c)".

127   Subsection   58R(2)

After "as if", insert ", at that time,".

128   At the end of subsection   58R(2)

Add ", and as if the person had given the consideration referred to in paragraph   48A(11)(b)".

129   After section   58R

Insert:

58RA   Interests taken to be transferred when combined with offshore interests

  (1)   If:

  (a)   after a person's interest in an onshore petroleum project is taken to be transferred to the head company or provisional head company, the project becomes part of a combined project of which another petroleum project that is not an onshore petroleum project is also a part; and

  (b)   the entitlement comprising the person's interest in the project just after that time is all of the entitlement comprising the company's interest in the project just before that time;

section   48 applies as if, at that time, the person's interest in the project just after that time had been transferred from the company under a transaction of a kind referred to in subsection   48(1A), and as if the person had given the consideration referred to in paragraph   48(1A)(c).

  (2)   If:

  (a)   after a person's interest in an onshore petroleum project is taken to be transferred to the head company or provisional head company, the project becomes part of a combined project of which another petroleum project that is not an onshore petroleum project is also a part; and

  (b)   the entitlement comprising the person's interest in the project just after that time is part, but not all, of the entitlement comprising the company's interest in the project just before that time;

section   48A applies as if, at that time, the person's interest in the project just after that time had been transferred from the company under a transaction of a kind referred to in subsection   48A(1), and as if the person had given the consideration referred to in paragraph   48A(11)(b).

130   Subparagraph 58U(1)(a)(i)

Omit " * MEC group", substitute "MEC group".

131   Subparagraph 58U(1)(b)(i)

Omit " * provisional head company of a * MEC group", substitute "provisional head company of a MEC group".

132   Paragraph 58V(1)(a)

Omit " * MEC group", substitute "MEC group".

133   At the end of section   58V

Add:

  (3)   If this section applies because a MEC group is created from a consolidated group, references in paragraph   ( 2)(c) to the head company of the new group are taken to be references to the head company or the provisional head company of the new group.

134   At the end of Division   8 of Part   V

Add:

58W   Subsidiary members that are trusts

    If a subsidiary member of a consolidated group or MEC group is a trust, this Division applies to the subsidiary member as if it were a person.

135   Subsection   93(1)

After "sections", insert "58P,".

136   Paragraph 97(1A)(b)

After "35(3)", insert ", 35C(5), 35D(3) and (4), 35E(3)".

137   Subsection   97(1AA)

Omit "subparagraph   24(1)(d)(i) or paragraph   24(1)(e)", substitute "paragraph   24(1)(d), (e) or (f)".

138   After section   108

Insert:

108A   Offshore information notices

    For the purposes of this Act, section   264A (about offshore information notices) of the Income Tax Assessment Act 1936 applies as if:

  (a)   a reference to a taxpayer in that section were a reference to a person; and

  (b)   a reference to an assessment in that section were a reference to an assessment under Division   2 of Part   VI of this Act; and

  (c)   a reference to the Income Tax Assessment Act 1936 in that section were a reference to this Act.

139   At the end of section   109

Add:

  (5)   This section does not apply to a trustee of a trust in relation to any period during which the trust:

  (a)   is a subsidiary member of a consolidated group or a MEC group; and

  (b)   is taken, under section   58P, to be part of the head company or provisional head company of the group for the purposes covered by subsection   58P(2).

140   Clause   1 of Schedule   1 ( paragraph   ( b) of the definition of relevant pre - commencement day )

Omit ", the Bass Strait project or the North West Shelf project".

141   Clause   1 of Schedule   1 (at the end of the definition of relevant pre - commencement day )

Add:

  ; or (c)   if the petroleum project is the Bass Strait project or the North West Shelf project--the day occurring 5 years before the earlier of the following:

  (i)   the earliest day specified in a production licence notice in relation to the project;

  (ii)   the earliest day a production licence was issued in relation to the project.

142   At the end of clause   22 of Schedule   1

Add:

  (5)   For the purposes of subclause   ( 1) but without limiting that subclause, the person is taken to hold an interest in relation to the transferring entity or the receiving project during a period if:

  (a)   in relation to all times during the period, the person and another person are group companies in relation to each other; and

  (b)   at all times during the period, the other person held an interest in relation to the transferring entity or the receiving project, as the case requires.

However, this subclause does not apply unless, at the time of the transfer referred to in subclause   ( 1), the person holds an interest in both the transferring entity and the receiving project.

143   After subclause   31(2) of Schedule   1

Insert:

  (2A)   If:

  (a)   at a time (the cessation time ) after the expenditure was incurred and on or after 1   July 1993, the loss company ceased to hold any interest in relation to the transferring entity; and

  (b)   the cessation did not occur because of a transaction to which section   48 applies;

subclause   ( 1) does not require the loss company to have held an interest in relation to the transferring entity at a time after the cessation time.

144   Paragraph 3(1)(b) of Schedule   2

Repeal the paragraph, substitute:

  (b)   an interest that the person may in the future hold in such a project, if:

  (i)   the project does not exist at the time the person makes the choice; and

  (ii)   the production licence to which the project would relate would, if it later came into existence, be derived from an exploration permit or retention lease in which the person held an interest at that time.

145   Paragraph 5(b) of Schedule   2

Omit "from which the interest is derived", substitute "from which the production licence to which the project relates is derived".

146   Paragraph 7(3)(b) of Schedule   2

Omit "from which the project is derived", substitute "from which the production licence to which the project relates is derived".

147   Subclause   7(3) of Schedule   2 (note)

Omit "subsection", substitute "subclause".

148   Subparagraph 10(1)(a)(ii) of Schedule   2

Omit "project (or pre - combination project)", substitute "production licence".

149   Subparagraph 10(2)(b)(i) of Schedule   2

Omit "section   3", substitute "clause   3".

150   Subclause   10(3) of Schedule   2

Omit " subsection   ( 1)", substitute " subclause   ( 1)".

151   Subclause   10(4) of Schedule   2

Repeal the subclause, substitute:

  (4)   Despite subclause   ( 1), something cannot become a starting base asset relating to an interest in a petroleum project that relates to a particular production licence if:

  (a)   the production licence is derived from a particular retention lease or exploration permit; and

  (b)   the thing has already become a starting base asset relating to an interest in another petroleum project; and

  (c)   the production licence to which the other project relates:

  (i)   came into force between 2   May 2010 and 30   June 2012; and

  (ii)   is derived from that retention lease or exploration permit.

  (4A)   Despite subclause   ( 1), something cannot become a starting base asset relating to an interest in a petroleum project that relates to a particular production licence if:

  (a)   the production licence is derived from a particular exploration permit; and

  (b)   a retention lease that is related to the exploration permit came into force between 2   May 2010 and 30   June 2012; and

  (c)   the production licence is not derived from the retention lease.

Note:   For the relationship between production licences, exploration permits and retention leases, see section   4.

152   Paragraph 15(5)(b) of Schedule   2

Omit "from which the project is derived", substitute "from which the production licence to which the project relates is derived".

153   Subclause   18(1) of Schedule   2

Omit "incurred by the person referred to in paragraph   ( b)".

154   Subclauses   18(3), (4) and (5) of Schedule   2

Omit "incurred by the person".

155   After subclause   18(5) of Schedule   2

Insert:

  (5A)   For the purposes of subclause   ( 1), if the person disposed of part of the interest during the period between 1   July 2007 and 2   May 2010:

  (a)   the acquisition is taken to be an acquisition of so much (the remaining part ) of the interest as the person holds immediately after the last such partial disposal to take place during that period; and

  (b)   the acquisition expenditure is taken to be so much of the expenditure referred to in paragraph   ( 2)(a) or (b) as is attributable to the remaining part of the interest.

156   Subclause   18(6) of Schedule   2 (heading)

Repeal the heading, substitute:

Interests acquired before 1   July 2007

157   Paragraphs 18(6)(a) and (b)

Omit "30   June 2007", substitute "1   July 2007".

158   Subclause   18(7) of Schedule   2

Repeal the subclause   ( not including the heading), substitute:

  (7)   For the purposes of this clause and clause   19:

  (a)   the person holding an interest in an onshore petroleum project or the North West Shelf project is taken to have acquired the interest if and only if:

  (i)   in a case where the project existed on 2   May 2010--the person purchased the interest; or

  (ii)   in a case where the project did not exist on 2   May 2010--the person purchased the exploration permit or retention lease from which the production licence to which the project relates is derived, or purchased an interest in the exploration permit or retention lease; and

  (b)   the acquisition is taken to have occurred when the transaction was first entered into that, when complete, had the effect of transferring the interest, or the permit or lease; and

  (c)   except for the purposes of subclause   ( 6) of this clause, the acquisition expenditure relating to the acquisition includes any expenditure the person incurred, at any time, in acquiring the interest:

  (i)   during the period between 1   July 2007 and 2   May 2010; or

  (ii)   under an agreement entered into during the period between 1   July 2007 and 2   May 2010.

159   Subparagraph 18(8)(b)(i) of Schedule   2

Repeal the subparagraph, substitute:

  (i)   the transaction that, when complete, had the effect of the first company becoming a subsidiary of the other company; or

160   Paragraph 18(8)(c) of Schedule   2

After "incurred", insert ", at any time,".

161   Paragraph 19(1)(b) of Schedule   2

Repeal the paragraph, substitute:

  (b)   during the period between 1   July 2007 and 2   May 2010, either or both of the following events occurred:

  (i)   a person acquired the interest;

  (ii)   if the person holding the interest is a company--the person was acquired by another company; and

162   Paragraph 19(2)(b) of Schedule   2

Repeal the paragraph, substitute:

  (b)   it was prepared in accordance with:

  (i)   the accounting standards (within the meaning of the Corporations Act 2001 ); or

  (ii)   International Financial Reporting Standard 6, or another international financial reporting standard prescribed by the regulations; and

163   Paragraph 19(2)(c) of Schedule   2

Omit "the day of the acquisition", substitute "the day on which the acquisition of the interest, or the acquisition of the company, was recognised in accordance with those accounting standards or that reporting standard ".

164   At the end of Part   4 of Schedule   2

Add:

21A   Assessable property receipts

  (1)   Without limiting section   27, if:

  (a)   on or after 1   July 2012, consideration is receivable by a person in respect of the disposal, loss or destruction of an asset; and

  (b)   the asset was used, or being constructed for use, before 1   July 2012 in carrying on project activities relating to an onshore petroleum project or the North West Shelf project;

the disposal, loss or destruction is taken, for the purposes of that section, to be a disposal, loss or destruction of property in respect of which capital expenditure of the kind referred to in paragraph   27(1)(a) was incurred by the person.

  (2)   However, if the asset was used, or being constructed for use, before 1   July 2012 only partly in carrying on project activities relating to the project, subclause   ( 1) applies to the disposal, loss or destruction only to the extent that the asset was so used, or being constructed for use.

165   Paragraph 23(4)(b) of Schedule   2

Omit "section   66", substitute "subsection   66(1)".

166   After subclause   23(5) of Schedule   2

Insert:

  (5A)   If:

  (a)   section   48 or 48A applies in relation to a transaction that has the effect of transferring a person's entitlement to derive, after the transaction, assessable receipts in relation to a petroleum project; and

  (b)   the person is a vendor (within the meaning of section   48 or 48A) in relation to the transaction; and

  (c)   before the transaction, a starting base assessment relating to the project was taken (under subclause   ( 1) or (5 B ) of this clause) to have been made relating to the person;

after the transaction, subclauses   ( 4) and (5) of this clause apply, in relation to a person who is a purchaser (within the meaning of section   48 or 48A) in relation to the transaction, and cease to apply in relation to the vendor, to the extent that the transaction had the effect of transferring that entitlement to the purchaser.

  (5B)   To the extent that subclauses   ( 4) and (5) apply because of subclause   ( 5A), the starting base assessment is taken to have been made relating to the purchaser, and not the vendor.

Taxation Administration Act 1953

167   Paragraph 8AAZLG(1)(b)

Repeal the paragraph, substitute:

  (b)   that the entity is required to give the Commissioner under:

  (i)   any of the BAS provisions (as defined in subsection   995 - 1(1) of the Income Tax Assessment Act 1997 ); or

  (ii)   any of the resource rent tax provisions (as defined in that subsection).

168   Subsection   8AAZLH(1)

Repeal the subsection, substitute:

  (1)   This section applies to refunds payable to an entity of RBA surpluses, or excess non - RBA credits that relate to an RBA, if primary tax debts arising under:

  (a)   any of the BAS provisions (as defined in subsection   995 - 1(1) of the Income Tax Assessment Act 1997 ); or

  (b)   any of the resource rent tax provisions (as defined in that subsection);

have been allocated to that RBA.

169   Application of subsection   8AAZLH(2)

For the purposes of applying section   8AAZLH of the Taxation Administration Act 1953 in relation to amounts that have been allocated to an RBA in relation to primary tax debts arising under any of the petroleum resource rent tax provisions (as defined in subsection   995 - 1(1) of the Income Tax Assessment Act 1997 ), if:

  (a)   an entity has not nominated a financial institution account in the approved form as required by subsection   8AAZLH(2) of the Taxation Administration Act 1953 ; and

  (b)   the Commissioner has information, given to the Commissioner before the commencement of this item, relating to a financial institution account into which refunds may be paid to an entity;

the Commissioner may treat the information as information given by the entity in that approved form.

170   Section   14ZQ

Insert:

"starting base assessment" means:

  (a)   a starting base assessment within the meaning of clause   23 of Schedule   2 to the Petroleum Resource Rent Tax Assessment Act 1987 ; or

  (b)   a starting base assessment within the meaning of subitem   15(3) of Schedule   4 to the Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Act 2012 .

171   Subparagraphs   14ZZK(b)(i) and (ii) and 14ZZO(b)(i) and (ii)

After "franking assessment", insert "or a starting base assessment".

172   At the end of section   11 - 1 in Schedule   1

Add:

  ; and (h)   * petroleum resource rent tax.

173   Paragraphs 12 - 330(1)(b) and 12 - 335(2)(a) in Schedule   1

Omit "or * MRRT", substitute ", * MRRT or * petroleum resource rent tax".

174   Subsection   18 - 10(3) in Schedule   1 (note)

Repeal the note, substitute:

Note 1:   Section   18 - 49 provides a credit for amounts withheld in respect of MRRT.

Note 2:   Section   18 - 55 provides a credit for amounts withheld in respect of petroleum resource rent tax.

175   At the end of Subdivision   18 - A in Schedule   1

Add:

Entitlement to credit: Petroleum resource rent t a x

18 - 55   Credit--Natural resource payments

  (1)   An entity is entitled to a credit in a year of tax (within the meaning of the Petroleum Resource Rent Tax Assessment Act 1987 ) if:

  (a)   one or more * withholding payments covered by section   12 - 325 (natural resource payments) from which there are * amounts withheld in respect of * petroleum resource rent tax are made to the entity during the year of tax; and

  (b)   an assessment has been made of the petroleum resource rent tax payable, or an assessment has been made that no petroleum resource rent tax is payable, by the entity for the year of tax.

  (2)   The amount of the credit is so much of the total of the * amounts withheld as is withheld in respect of * petroleum resource rent tax.

176   Section   115 - 1 in Schedule   1

After "mining revenue", insert "or pre - mining revenue".

177   At the end of section   117 - 20 in Schedule   1

Add:

  (6)   In addition to the * starting base return required under subsection   ( 1) (and the * MRRT returns required under section   117 - 5 or 117 - 15), you must give the Commissioner such further or fuller starting base returns as the Commissioner directs you to give (including any starting base return in your capacity as agent or trustee).

178   Paragraph 284 - 75(2)(a) in Schedule   1

After "the * MRRT law", insert "or * petroleum resource rent tax law".

179   Paragraph 284 - 75(2)(b) in Schedule   1

After "the MRRT law", insert "or petroleum resource rent tax law".

180   Subsection   284 - 80(1) in Schedule   1 (table item   3)

Omit ", or the * MRRT law,", substitute ", the * MRRT law or the * petroleum resource rent tax law".

181   Subsection   284 - 80(1) in Schedule   1 (table item   4)

Omit ", or the * MRRT law," (first occurring), substitute ", the * MRRT law or the * petroleum resource rent tax law".

182   Subsection   284 - 80(1) in Schedule   1 (table item   4)

Omit " * income tax law, or the * MRRT law," (last occurring), substitute "income tax law, the MRRT law or the petroleum resource rent tax law".

183   Subsection   284 - 90(1) in Schedule   1 (cell at table item   4, column headed "In this situation:")

Repeal the cell, substitute:

Taxation (Interest on Overpayments and Early Payments) Act 1983

184   Subsection   3(1) ( paragraph   ( d) of the definition of decision to which this Act applies )

Omit "the liability of the person to tax", substitute "the liability of the person to relevant tax or other tax".

185   Subsection   3C(2)

Repeal the subsection, substitute:

  (2)   Without limiting subsection   ( 1), a reference in item   160 of the table to assessed MRRT includes any general interest charge due and payable in relation to such an amount.

186   Section   12AA (heading)

Repeal the heading, substitute:

12AA   Entitlement to interest for RBA surpluses after notification of BAS amount or resource rent tax amount

187   Paragraph 12AA(a)

After "BAS amount", insert "or resource rent tax amount".

188   Section   12AA (note)

After " BAS amount ,", insert " resource rent tax amount ,".

189   Paragraph 12AB(a)

After "BAS amount", insert "or resource rent tax amount".

190   Section   12AB (note)

After " BAS amount ,", insert " resource rent tax amount ,".

191   Paragraph 12AC(b)

After "BAS amount", insert "or resource rent tax amount".

192   Section   12AC (note)

After " BAS amount ,", insert " resource rent tax amount ,".

193   Section   12AF

Insert:

"resource rent tax amount" has the same meaning as in subsection   995 - 1(1) of the Tax Act.

Part   2 -- General amendments

A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999

194   Paragraphs 15(1)(c) and 16(2)(c)

Before "20,542", insert "$".

Crimes (Taxation Offences) Act 1980

195   Subsection   3(1) ( paragraph   ( b) of the definition of income tax )

Before "section   170AA", insert "former".

Excise Tariff Amendment (Condensate) Act 2011

196   Item   4 of Schedule   1 (at the end of the heading)

Add " (before The Schedule) ".

Fringe Benefits Tax Assessment Act 1986

197   Subsection   136(1) (definition of Chief Executive Centrelink )

Repeal the definition.

Fuel Tax Act 2006

198   Subsections   43 - 10(11) and (12)

Omit " * road user charge", substitute "road user charge".

Income Tax Assessment Act 1936

199   Subsection   159P(4) ( subparagraphs   ( g)(i) and (ii) of the definition of medical expenses )

After "spectacles", insert "or contact lenses".

Income Tax Assessment Act 1997

200   Section   10 - 5 (table item headed "balancing adjustment")

Omit " industrial property, ".

201   Section   10 - 5 (table item headed "industrial property")

Repeal the item.

202   Section   10 - 5 (table item headed "residual value")

Repeal the item.

203   Section   102 - 20 (note 5) (the note 5 inserted by item   69 of Schedule   1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 )

Omit "Note 5", substitute "Note 6".

204   Paragraph 250 - 55(b)

Repeal the paragraph, substitute:

  (b)   the end user is:

  (i)   an entity that is a foreign resident; or

  (ii)   an entity that is an Australian resident, to the extent that the entity carries on * business in a foreign country at or through a * permanent establishment of the entity in that country.

205   Subparagraph 250 - 60(1)(b)(ii)

Omit "(non - resident)", substitute "(foreign resident or business)".

206   Subparagraph 250 - 60(2)(b)(ii)

After "(foreign resident", insert "or business".

207   Paragraph 250 - 115(3)(b)

After "foreign residents", insert "or businesses".

208   Application of amendments

The amendments made by items   204 to 207 apply in relation to end users of assets on or after 1   July 2007.

209   Paragraph 727 - 95(a)

Omit "a non - arm's length dealing", substitute "a dealing that is not at * arm's length".

210   Subsection   995 - 1(1) (definition of natural resource , first occurring)

Repeal the definition.

Income Tax Rates Act 1986

211   Subsection   3(1)

Insert:

"net income phase-out limit" has the meaning given by subsection   14(3).

212   Subsection   3(1)

Insert:

"non-resident phase-out limit" has the meaning given by subsection   15(8).

213   Subsection   3(1)

Insert:

"resident phase-out limit" has the meaning given by subsection   13(10).

214   Subsection   13(2)

Omit "$1,307", substitute "the resident phase - out limit".

215   Paragraphs 13(5)(b), (6)(c) and (8)(b)

Omit "$1,307", substitute "the resident phase - out limit".

216   At the end of section   13

Add:

  (10)   The resident phase - out limit is the following amount rounded down to the nearest dollar:

217   Paragraph 14(2)(c)

Omit "$594", substitute "the net income phase - out limit".

218   At the end of section   14

Add:

  (3)   The net income phase - out limit is the following amount rounded down to the nearest dollar:

219   Paragraphs 15(2)(b), (4)(d) and (6)(b)

Omit "$663", substitute "the non - resident phase - out limit".

220   At the end of section   15

Add:

  (8)   The non - resident phase - out limit is the following amount rounded down to the nearest dollar:

221   Application of amendments

The amendments made by items   211 to 220 apply in relation to the 2012 - 13 income year and later income years.

New Business Tax System (Former Subsidiary Tax Imposition) Act 1999

222   Paragraphs 4(2)(a) and (b)

Omit "section   170AA", substitute "former section   170AA".

New Business Tax System (Venture Capital Deficit Tax) Act 2003

223   Subsection   2(1) (table item   2)

Omit " (No.   2) ".

Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012

224   Item   1 of Schedule   2

Omit "or (g)" (wherever occurring).

Taxation Administration Act 1953

225   Subparagraph 426 - 102(1)(a)(ii) in Schedule   1

Before "is prescribed", insert "each trustee of the trust".

Taxation (Interest on Overpayments and Early Payments) Act 1983

226   Subsection   3C(1) (definition of relevant tax ) (table item   15)

Omit "section   170AA of the Tax Act", substitute "former section   170AA of the Income Tax Assessment Act 1936 ".

227   Subparagraph 8A(1)(a)(vb)

Omit "or 170AA", substitute ", or former section   170AA,".

Tax Laws Amendment (2011 Measures No.   9) Act 2012

228   At the end of section   4

Add:

  (4)   Section   170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if:

  (a)   the assessment was made before the commencement of Part   28 of Schedule   6 to this Act; and

  (b)   the amendment is made within 2 years after the commencement of this subsection; and

  (c)   the amendment is made for the purpose of giving effect to that Part.

229   Item   14 of Schedule   1

Omit "self - managed superannuation funds", substitute "self managed superannuation funds".

230   Item   200 of Schedule   6

Omit "self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993 )", substitute "self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993 )".

231   Item   201 of Schedule   6

Omit "self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993 )", substitute "self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993 )".

232   Item   202 of Schedule   6

Omit "self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993 )", substitute "self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993 )".

233   Item   203 of Schedule   6

Omit "self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993 )", substitute "self managed superannuation fund (within the meaning of the Superannuation Industry Supervision Act 1993 )".

Tax Laws Amendment (Income Tax Rates) Act 2012

234   Subsection   2(1) (table item   3)

Repeal the item.

235   Part   2 of Schedule   1

Repeal the Part.

Part   3 -- Asterisking amendments

Income Tax Assessment Act 1997

236   Amendments relating to asterisking

The provisions of the Income Tax Assessment Act 1997 listed in the table are amended as set out in the table.

237   Subsection   960 - 275(1) (formula)

Repeal the formula, substitute:

238   Subsection   960 - 275(1A) (formula)

Repeal the formula, substitute:

239   Subsection   960 - 275(2) (formula)

Repeal the formula, substitute:

240   Subsection   960 - 275(3) (formula)

Repeal the formula, substitute:

241   Subsection   960 - 285(3A) (formula)

Repeal the formula, substitute:

242   Subsection   960 - 285(4) (formula)

Repeal the formula, substitute: